With regard to U.S. investors in Coupang asking the Office of the United States Trade Representative (USTR) to investigate, saying the Korean government discriminated against the U.S. corporations Coupang, the government decided to pursue both persuading the U.S. side and legal action.
A Ministry of Trade, Industry and Resources official said on the 23rd that it will closely review the notice of intent to arbitrate for investor-state dispute settlement (ISDS) submitted by the U.S. investors and, based on that, will begin consultations with the U.S. side.
Greenoaks and Altimeter, investors in Coupang, have requested an investigation by the USTR and sent a notice of intent to arbitrate under the Korea-U.S. Free Trade Agreement (FTA) to the Korean government.
A notice of intent to arbitrate in ISDS is the procedure by which a claimant informs the other country of the intention to bring international arbitration. It does not in itself start arbitration, but a formal arbitration can be filed 90 days after the notice is submitted. It is a warning that arbitration will proceed if corrective action is not taken.
Because the USTR decides whether to initiate an investigation within 45 days of receiving a petition, the government plans to fully explain Korea's position before then. It intends to convey that the Coupang personal data leak case is not a discriminatory measure targeting specific corporations or nationalities, but a general enforcement action in accordance with laws and principles.
While the United States has previously launched investigations against Korea under its trade laws, there are reportedly no precedents in which a tariff was actually imposed based on the investigation results.
Going forward, the Ministry of Justice will lead the legal response. Centered on the International Investment Dispute Response Team, the ministry will establish a joint response system with relevant agencies and comprehensively review the legal issues related to the notice of intent to arbitrate.