US used Coupang to pressure Seoul — will it ease off after data leak findings?
A South Korean investigation reveals that Coupang may have downplayed a massive data leak, potentially impacting US pressure on Seoul regarding trade issues related to the company.
On Tuesday, the South Korean government released the findings of an investigation into Coupang's significant personal data leak, sparking debate about the potential repercussions for US-South Korea relations. The investigation revealed that Coupang may have minimized the extent of the data breach and permitted the erasure of log records, possibly compromising the United States' rationale for its critical stance towards the South Korean authorities in the context of trade agreements. This situation is particularly precarious as it aligns with ongoing discussions about the legal and regulatory landscape for American companies operating in South Korea.
In a related development, the US House Judiciary Committee has issued a subpoena to Harold Rogers, the interim CEO of Coupang Korea, requiring him to testify before the committee on February 23. This subpoena underscores the serious nature of the allegations against Coupang and the US Congress’s commitment to scrutinizing the company's practices following the data leak. The Committee's action suggests an increasing concern regarding corporate governance and data privacy that may influence future US regulations concerning foreign businesses.
As the situation unfolds, the implications for international trade relations are profound. The findings from the South Korean investigation may lead to a recalibration of US pressure tactics concerning Coupang, especially if evidence suggests that the company failed to comply with local regulations. The case has significant bearings, not just for Coupang but for the broader context of American businesses in South Korea, potentially impacting how both governments approach regulatory practices moving forward, particularly in the realm of digital commerce and consumer privacy.