South Korea refutes US House committee report alleging discrimination against e-commerce giant
Seoul, July 4
South Korea's presidential office has rejected as untrue a recent US House committee report alleging South Korea's "discriminatory" targeting of Coupang, saying the government does not discriminate against companies based on their nationality or conduct targeted investigations.
National Security Advisor Wi Sung-lac made the remarks on Friday (local time) in reaction to the House Judiciary Committee report released earlier this week that accused South Korea of carrying out "discriminatory attacks" on e-commerce giant Coupang Inc. over an investigation into a massive customer data leak at the South Korean affiliate of the US-listed company.
The report said Coupang had been a "consistent target" of the South Korean government, accusing Seoul of engaging in "economic discrimination against foreign companies."
"The report's claims that the investigation is discriminatory, that it is targeted and that unfair regulations continue are far from the facts," Wi said during a press briefing.
"(South Korea) neither discriminates against companies, (their business) activities based on their nationality nor conducts investigations targeting anybody," Wi said, adding that the probe into Coupang is being carried out "without discrimination" in accordance with due process under domestic law.
Wi said Coupang itself had acknowledged the data leak involved more than 33 million user accounts, and the leak could also have affected US citizens living in South Korea.
"Had a similar data breach occurred in the US, involving personal information affecting two-thirds of the US population leaked to China, with its whereabouts remaining unknown, it would undoubtedly have been considered a serious issue," Wi said.
The security adviser also denied the report's allegation that the National Intelligence Service or a high-level presidential official was involved in retrieving an IT gadget from China that belonged to a suspect in the data breach.
Wi said the report appears to have reflected only Coupang's unilateral claims, and that the South Korean government will work to ensure its own position is understood in the United States through continued communication.
The government will also work to separate the Coupang issue from other bilateral matters to ensure it does not affect other affairs, he added.
The National Assembly also issued a statement expressing regret over the report, saying the US' assessment was based on only a limited set of facts.
South Korean lawmakers questioned Coupang officials, including interim CEO Harold Rogers, during parliamentary hearings held in December over the company's massive personal data leak and other related issues.
"The hearing on the personal data leak case was lawfully convened in accordance with the National Assembly Act and pursuant to our constitutional responsibilities," the statement said. "It was not an exceptional procedure targeting a specific company but rather part of our ordinary practice for reviewing complex issues."
It also rejected claims of discriminatory treatment, saying procedures, including the administration of oaths, notification of legal liability for false testimony and adjustments to speaking time, were applied equally to all witnesses, reports Yonhap news agency.
Regarding interpretation services provided during the hearing, the parliament stressed that such support was offered "to ensure accurate communication and facilitate the smooth conduct of the session."
Rogers' testimony at an earlier parliamentary hearing sparked controversy, with some lawmakers raising concerns over alleged mistranslations. At a subsequent hearing, the National Assembly arranged simultaneous interpretation services, but Rogers insisted on using an interpreter he had brought with him, leading to tensions between the two sides.
The foreign ministry also expressed regret over the report Thursday, while adding that it would continue consultations and communications with the US to prevent the issue from affecting broader aspects of the Korea-US alliance.
— IANS
Reader Comments
Honestly, I think the US House committee might be overreacting here. Coupang is a massive platform—if they lost data of 33 million users, of course South Korea would investigate. We in India saw similar outcry when Aadhaar data leaks were reported. National security advisor makes a valid point: imagine 200 million Americans' data leaked to China—wouldn't the US investigate aggressively? Let's not be hypocritical.
As someone who's lived in both India and Korea, I can see both sides. The parliamentary hearing process described here seems standard—oaths, legal liability warnings, time limits—that's democracy at work. But the translation issues with the CEO are concerning. If the US wants to raise questions, fine, but alleging 'discriminatory attacks' without clear evidence seems premature. Let's see more facts first.
South Korea's response is measured and logical—they're not discriminating, they're protecting citizen data. The US should appreciate that instead of politicizing it. In India, we've seen similar tensions when foreign tech companies face scrutiny over data privacy. Coupang's own admission of 33 million accounts breached justifies the investigation. The security advisor's comparison to US scenarios is spot on.
Respectfully, I think there's room for questioning the process. The report might have some basis if Coupang felt unfairly targeted. But on the other hand, data breaches of this scale demand strong regulatory action—whether in Seoul, New Delhi, or Washington. The Korean National Assembly's point about applying rules equally to all witnesses is key. Hopefully, discussions between allies won't damage the broader relationship.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.