WASHINGTON, D.C. — The House Judiciary Committee released a report on Wednesday detailing an investigation into allegations that South Korea engaged in a coordinated campaign of regulatory retaliation against the U.S.-based online retailer Coupang. The investigation, which opened in February, alleges the actions followed a data breach in 2025.

The report states that South Korea's conduct is part of a broader attempt by foreign governments to "weaponize their laws and regulations in an effort to harm American companies and limit their ability to compete in the global economy." According to the committee's findings, Coupang has faced "discriminatory pressure from the South Korean government that intensified in 2025 after a data breach perpetrated by a former employee."

The report details an alleged campaign against Coupang that included dozens of investigations, thousands of document requests, fines, and threats of criminal charges against Harold Rogers, Coupang's acting CEO. It asserts that South Korean regulators have subjected the company to "hostile regulatory treatment, unfair enforcement practices, and disproportionately large penalties not faced by their Korean competitors." The committee also stated that this "discriminatory treatment of American-owned businesses directly violates its recent trade agreement with the United States." The result of this campaign, the committee noted, has been a more than 40% drop in Coupang's market capitalization.

The report described an incident where South Korea's National Intelligence Service allegedly compelled Coupang to hire divers to retrieve a laptop used by a former employee from a river in Shanghai. This mission was part of a probe into a November data breach that affected 33 million customers. Coupang compiled evidence, including messages from a senior government aide, affirming that South Korea's president had been briefed on the recovery operation. The report states that the highest levels of the South Korean government, including President Lee Jau-myung, knew the National Intelligence Service had been closely instructing Coupang on the recovery.

Harold Rogers, acting CEO of Coupang, told House Judiciary officials he would not have authorized an employee to travel to China or hired a diving crew unless he firmly believed Coupang had a legal obligation to do so. The report included a signed letter from the National Intelligence Service, dated December 2, confirming Coupang's legal obligation to comply with its orders. Rogers was questioned during two days of hearings by South Korea's National Assembly at the end of December. The South Korean government later threatened criminal perjury charges and a potential travel ban against Rogers after he testified that Coupang had followed National Intelligence Service instructions.

South Korea Foreign Ministry spokesperson Park Il expressed regret over the House Judiciary Committee report, stating it reflected only Coupang's unilateral claims. Park said that South Korean authorities' investigation into Coupang and the measures taken against the company were carried out under domestic law. He denied that Seoul had subjected Coupang to discrimination or unfair regulation, stating that "the suggestion that South Korea's government carried out discriminatory investigations and imposed unfair regulations on Coupang was not consistent with the facts."

Why It Matters

The House Judiciary Committee's report details an alleged pattern of regulatory actions by the South Korean government against a U.S.-based company, Coupang, following a data breach. These actions, which included multiple investigations, substantial fines, and threats against company executives, occurred despite Coupang informing South Korean officials in December that the data breach was smaller than initially expected. The committee asserts that these actions violate a recent trade agreement between the U.S. and South Korea, which was renegotiated in 2025.

The report suggests a broader pattern of behavior by foreign governments weaponizing laws and regulations against American companies, potentially impacting international trade relations and the ability of U.S. companies to operate globally. The allegations include direct involvement by the South Korean National Intelligence Service in compelling Coupang to undertake unusual recovery operations for a stolen laptop, and contradictions regarding the extent of the data breach and the government's involvement. The U.S. and South Korea have maintained a free trade agreement since 2012.