Coupang fine strains US-South Korea ties

South Korea's decision to fine e-commerce firm Coupang 625 billion won ($422.62 million) over a data leak affecting over 33 million customers has drawn sharp criticism from the United States, escalating into a diplomatic dispute that threatens broader bilateral relations. The U.S. State Department and House Judiciary Committee have accused South Korea of discriminating against American companies, while South Korean officials insist the penalty was a routine consumer protection measure. The dispute has become entangled with other issues, including South Korea's $350 billion investment pledge to the U.S., its ambition to build nuclear-powered submarines, and coordination on China and North Korea. South Korea's ambassador to the U.S., Kang Kyung-wha, returned to Seoul for consultations. Coupang has challenged the fine and sought a constructive resolution. The U.S. has also criticized South Korea's amendments to communications laws that increase penalties for false information, affecting platforms like Alphabet Inc., Meta, X, and ByteDance — TikTok Shop.