South Korea is moving to prevent a dispute involving Coupang, South Korea’s largest e-commerce platform operator and a major online retailer known for fast delivery services, from becoming a broader trade and diplomatic problem with the United States after U.S. officials questioned whether the company had been unfairly treated by Korean regulators.
Kang Kyung-wha, South Korea’s ambassador to the United States, said Tuesday that the two governments share the view that the issue should be managed carefully so it does not become a burden on bilateral relations. Speaking at the South Korean Embassy in Washington, Kang said the South Korean government would continue consultations with U.S. officials while explaining its position clearly and consistently.
The comments came after the issue drew attention in Washington. A recent report by the U.S. House Judiciary Committee claimed that Coupang had been discriminated against in South Korea. The White House later sent a similar message, saying American technology companies had been unfairly targeted in the country. South Korean officials were surprised by the White House remarks and have been trying to determine what led to them, but they have not yet identified the exact background.
South Korea rejects the allegation that it treats companies differently based on nationality. The government says the House Judiciary Committee report largely reflected Coupang’s claims and did not fully include the positions of Korean agencies named in the report. Seoul plans to gather responses from those agencies and submit them to the committee.
The dispute is emerging as another sensitive issue in a relationship already crowded with trade, security and industrial negotiations. The two governments are still working to implement agreements reached by their leaders last October on security cooperation, including South Korea’s pursuit of nuclear-powered submarines and expanded authority related to uranium enrichment and spent nuclear fuel reprocessing.
Kang said communication on nuclear and submarine-related cooperation began operating more actively after U.S. Under Secretary of State Allison Hooker visited South Korea last month. The two sides are now coordinating the next round of talks and plan to accelerate working-level discussions in separate areas.
Progress has been slower on shipbuilding cooperation. During the first interagency meeting between the two governments last month, shipbuilding was not discussed because the U.S. side had not completed its preparations. South Korea nevertheless expects concrete progress soon through working groups, as both governments continue discussions on strategic investment and industrial cooperation.
Tariffs remain another point of concern. Kang said South Korea has emphasized that existing tariff agreements between the two countries should continue to be respected even if the legal basis for future U.S. tariffs changes. She said U.S. officials have also expressed an intention to honor those agreements.
The Trump administration has turned to new Section 301 investigations after country-specific reciprocal tariffs were struck down by the U.S. Supreme Court. The U.S. Trade Representative has opened investigations into alleged unfair trade practices involving forced labor and overcapacity. South Korea has been notified of a proposed 12.5% tariff related to the forced-labor investigation, while the overcapacity investigation is still pending.
Kang also said there has been no concrete progress toward renewed talks between the United States and North Korea, despite expectations in some circles after a recent meeting between U.S. and Chinese leaders. South Korea is watching whether North Korea will attend ASEAN-related foreign ministers’ meetings in Manila later this month and what message Pyongyang may send there.
What began as a dispute over Coupang’s treatment by Korean regulators is now testing whether South Korea can keep a domestic regulatory issue from becoming part of a wider U.S. debate over trade, technology companies and market access in allied economies.
