Seoul defends a record $422 million fine on US-owned Coupang as American lawmakers allege protectionism. The privacy penalty, the largest in South Korean history, has drawn the ambassador back from Washington.
South Korea's ambassador to the U.S. returned to Seoul to discuss a record $422 million fine on Coupang as American lawmakers questioned whether the penalty reflects protectionism rather than privacy enforcement, Reuters reported Friday.
The Personal Information Protection Commission levied the 625 billion won fine in June, the largest ever imposed for a privacy violation in South Korea. It followed a November 2025 data leak that exposed the names, email addresses, phone numbers, shipping addresses and some order histories of Coupang's entire customer base.
Ambassador Kang Kyung-wha told local media the dispute was "dragging on much longer than I expected." South Korean ruling party lawmaker Park Sun-won said the fine "would be the same for any company."
Washington sees it differently. A State Department spokesperson said Seoul "should not impose disproportionate burdens on U.S. companies." Two Coupang investors in January called on the U.S. government to investigate South Korea's handling of the incident and suggested trade remedies might be warranted.
Coupang, often called the "Amazon of South Korea," told Reuters it hopes to find a constructive resolution. The company disclosed in December 2025 that the perpetrator, a former employee, retained data from only 3,000 accounts, did not transfer the data to others and deleted it when news outlets began reporting the incident.
Days later, on Dec. 29, interim CEO issued an apology and said Coupang would offer vouchers worth up to 55,000 won ($38) to each of the 33.7 million affected customers. An investor class action filed in California in December alleged the company violated securities laws by misleading investors about its data security practices and failing to disclose the breach in a timely manner.
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