Anchor: Two U.S. venture capital firms have notified the South Korean government they plan to file arbitration claims, accusing it of treating e-commerce giant Coupang Inc. in a discriminatory manner following its massive data breach. They have also called on the U.S. Trade Representative to investigate the matter. Coupang, meanwhile, has said it has nothing to do with the investor-state dispute settlement case.
Rosyn Park has this report.

Report: Silicon Valley investment firms Greenoaks and Altimeter, major shareholders of Coupang Inc., said Thursday that they have asked the U.S. Trade Representative(USTR) to investigate South Korea’s measures targeting Coupang and to impose appropriate trade remedies, potentially including tariffs and other sanctions. 

The investors said they also notified Seoul of their intent to file for arbitration under the South Korea-U.S. Free Trade Agreement, accusing the government of launching a campaign against Coupang since its massive consumer data breach, causing investors to suffer losses amounting to billions of dollars.

They said that after Coupang revealed in November of last year that data from nearly 34 million customers in South Korea was exposed, the authorities’ response went far beyond normal regulatory enforcement, alleging that South Korea initiated a whole-of-government response to halt Coupang’s business, including labor, financial and customs investigations bearing little relation to the breach.

Under the trade pact, the investors’ formal notice triggers a 90-day “cooling-off” period for talks before full arbitration proceedings can begin. 

Separately, the USTR has up to 45 days to decide whether to launch a formal investigation, which could lead to public input, ​hearings and possible U.S. countermeasures. 

The justice ministry in Seoul said it will establish a joint response system, centered on its international investment disputes task force, to closely review the legal issues related to the notice of intent and disclose relevant information to the public.

Coupang said in a statement that the investors’ notice of intent to seek an investor-state dispute settlement claim has nothing to do with the company, adding that it is fully cooperating with all government investigations.
Rosyn Park, KBS World Radio News.