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South Korea’s government has defended its investigation into e-commerce giant Coupang against accusations of discriminatory enforcement, as diplomatic tensions emerge over the probe into a massive data breach affecting over 33 million users.
Government Pushes Back on U.S. Criticism
Science Minister Bae Kyung-hoon told lawmakers Wednesday that South Korea’s investigation into Coupang’s Korean operations follows established legal procedures without discrimination. His comments came after the U.S. House Judiciary Committee launched its own investigation last Thursday into what it characterized as South Korea’s “discriminatory targeting” of American companies.
“The probe by South Korea is being implemented under the law and principle,” Bae stated during a parliamentary session, responding directly to questions about whether the government had taken discriminatory measures against the U.S.-listed e-commerce company.
Data Breach Scale Dramatically Expands
The controversy centers on a November data breach at Coupang that exposed personal information including names, phone numbers, email addresses, and delivery details of customers. Initially, Coupang claimed based on its internal investigation that only 3,000 accounts had been compromised.
However, a joint public-private investigation revealed Tuesday that the actual scope was far more severe, with over 33.6 million accounts exposed – more than 11,000 times larger than the company’s original estimate. This dramatic discrepancy has intensified scrutiny of both Coupang’s initial response and the thoroughness of its internal investigation.
Broader Context
Coupang operates as one of South Korea’s dominant e-commerce platforms, competing directly with domestic companies in the rapidly growing online retail market. The company’s U.S. stock listing means any regulatory actions in South Korea could potentially impact its market valuation and investor confidence.
What’s Next
The diplomatic dimension adds complexity to what began as a standard data protection investigation. With both the U.S. House Judiciary Committee and South Korean authorities now involved, the case has evolved beyond corporate compliance into a bilateral trade and regulatory issue that could influence how both countries handle cross-border business investigations.
Sources: Koreatimes
