Coupang's personal data breach is emerging as potential grounds for new US tariffs against South Korea. The development comes as the Donald Trump administration seeks alternatives to reciprocal tariffs invalidated by the Supreme Court, with the US Congress now investigating whether the Korean government discriminated against the American company.
The US House Judiciary Committee summoned Harold Rogers, Coupang's interim representative in South Korea, for closed-door testimony on May 23 (local time). The committee is investigating whether the Korean government engaged in discriminatory actions against Coupang, a US company.
If Congress determines discriminatory actions occurred, this could trigger a tariff investigation under Section 301 of the US Trade Act. Section 301 allows the United States to impose tariffs in response to unfair, unreasonable, or discriminatory foreign government actions, policies, or practices. The US Trade Representative has announced plans to initiate Section 301 tariff investigations after the Supreme Court invalidated reciprocal tariffs.
Congress has left open the possibility of further action on Coupang. A House Judiciary Committee spokesperson said "everything is open" regarding whether the investigation could lead to public hearings or legislative measures.
Industry and political circles worry that if a single company's issue escalates into a US-Korea trade and diplomatic conflict, consumer sentiment toward Coupang would deteriorate while negatively affecting the Korean government and political establishment.
"Korean consumers may increasingly abandon Coupang, viewing it as undermining Korea-US relations and complicating trade and diplomatic issues," an industry official said. "For the government and ruling party, damage to US relations over one company could raise questions about their diplomatic competence."
Coupang itself appears concerned about renewed backlash. Following the testimony, Coupang Inc., the US parent company, stated: "We regret that the situation in Korea has escalated to US congressional testimony. We hope to serve as a bridge between the United States and Korea, contributing to improved economic relations, strengthened security alliances, and increased trade and investment."
Coupang previously moved quickly to align with President Lee Jae-myung after he criticized high sanitary pad prices, launching products at 99 won each.
The Korean government has also engaged with Congress to manage the situation. Before the hearing, the government reportedly transmitted final investigation results from the joint public-private investigation team. The Ministry of Science and ICT previously announced that 33.67 million user records were leaked and screens containing names, phone numbers, and addresses were viewed 148 million times.
The government's move appears aimed at correcting US political perceptions centered on Coupang's claim that "actual leaks numbered only 3,000." By directly transmitting official investigation results, the government seeks to establish facts and prevent unnecessary diplomatic friction.
"We are communicating with the US Congress through various channels based on the joint investigation team's final results," a Ministry of Foreign Affairs official said.