Coupang's U.S. investors have escalated their legal actions against the South Korean government, citing damages incurred from a data breach involving the personal information of approximately 33 million customers. The South Korean Ministry of Justice announced that three investors—Foxhaven, Durable, and Abrams—have submitted a notice of intent for international investment arbitration based on the Korea-U.S. Free Trade Agreement (FTA). This notice is the first step towards potential arbitration, allowing for formal proceedings to begin 90 days after submission.

Previously, other investors, Greenox and Altermeter, had also submitted a similar notice, and the latest group of investors appears to mirror their claims. The South Korean government is preparing a systematic and professional response through the International Investment Dispute Response Team to address these increasing legal pressures. The ongoing legal challenges follow widespread political and social backlash in South Korea against Coupang following the data leak incident, which has seen the company's stock price drop by approximately 27% since the breach was revealed.

Coupang's parent company has accused the South Korean government of conducting biased investigations, further inflating tensions between the company and the government. As the lawsuits escalate, the implications for both the financial market and the relationship between U.S. investors and South Korean authorities remain significant, potentially affecting future foreign investments and regulation in South Korea.