The Wall Street Journal (WSJ) reported on the 27th local time that U.S. Vice President J.D. Vance recently met with Prime Minister Kim Min-seok and said the Korean government should not take actions that disadvantage U.S. corporations, including Coupang.
Citing sources, the WSJ reported that the vice president met with the prime minister in Washington, D.C., last week and warned against taking actions that disadvantage U.S. technology corporations, including Coupang. At the meeting, the vice president was said to have noted that the U.S. side wants "meaningful de-escalation" regarding how the Korean government is treating technology corporations like Coupang.
The conversation took place just days before President Donald Trump said he would raise tariffs on Korean-made automobiles and other products back to 25% from 15%. As a result, there is speculation that Korea's treatment of U.S. corporations may have influenced the decision to raise the tariff.
The WSJ said, "The conversation took place just before trade tensions between the two countries reached a peak," and added that the vice president's office declined to comment.
A day earlier, President Trump said on the social media platform Truth Social that passage of the Special Act on Investment in the United States was being delayed in the Korean National Assembly and that he would re-raise tariffs on Korean-made products such as automobiles to 25% from 15%. Three days before that, on the 23rd, the vice president met with the visiting prime minister to discuss the Coupang issue and other matters.
At a meeting with the press corps, the prime minister said of the talks at the time, "We clearly explained that there was no discriminatory treatment against U.S. corporations regarding the Coupang issue," and added, "Even so, the vice president requested that we manage the matter mutually so it does not overheat and turn into a misunderstanding between the two governments."
Coupang's Korea unit is 100% owned by its U.S.-listed parent company, Coupang Inc. U.S. investors in Coupang claim that the Korean authorities' response to a data leak incident exceeded the level of normal regulatory enforcement and that they suffered losses such as a drop in the stock price. Two of them recently notified the Korean government that they would initiate investor-state dispute settlement (ISDS) arbitration and filed a petition with the U.S. government requesting an investigation and action.
Meanwhile, some in the Trump administration and the U.S. Congress have raised criticism that the amendment to the Act on Promotion of Information and Communications Network Utilization and Information Protection passed by the Korean National Assembly late last year and the currently pending regulation of online platforms amount to "censorship" and "discrimination against U.S. corporations."
The WSJ reported that a memorandum of understanding (MOU) on U.S.-bound investment between Korea and the United States signed on Nov. 14 last year includes Korea's pledge to invest $350 billion in the United States and a clause prohibiting discrimination against U.S. technology corporations. It added, citing officials, that while President Trump's threat to raise tariffs is focused on delays in legislating the trade deal, it also comes amid growing discontent within the administration over several issues, including the treatment of U.S. technology corporations.
However, a White House official drew a line, saying that issues related to U.S. corporations or religion were not the cause of this tariff increase decision. The official said, "Although President Trump lowered tariffs on Korea, Korea has shown no progress in fulfilling its commitments," adding, "Other issues raised in the U.S.-Korea relationship are unrelated to this presidential decision."
Although President Trump has announced a plan to raise tariffs, the administration has not yet taken specific administrative steps such as an executive order or publication in the Federal Register. Accordingly, the WSJ projected that there is still room for negotiations between the two governments.