The South Korean Ministry of Justice announced on the 5th that it has appointed both domestic and international law firms to manage the international investment dispute (ISDS) arbitration request from US investors in Coupang. It confirmed the selection of Peter & Kim as its domestic advisory law firm and Arnold & Porter as the international cooperative law firm, aiming to respond swiftly during the 90-day cooling-off period that follows the filing of the arbitration request. The Ministry emphasized ongoing collaboration with these firms to ensure a professional and effective response to the arbitration intentions.

The arbitration request in question was submitted by shareholders of Coupang based in the United States, including Greenox and Altimeter, following damage claims resulting from the South Korean government's investigations into a personal data leak scandal involving Coupang. The investors argue that the actions of the South Korean government violated obligations under the Korea-US Free Trade Agreement (FTA), including fair and equitable treatment along with several other treatment obligations. The Ministry's involvement reflects the seriousness of the claims made by the investors and the potential implications for the country’s investment climate.

The arbitration intentions highlighted include violations of obligations under the FTA, such as the requirement for fair treatment, national treatment, most-favored-nation treatment, comprehensive protection, and prohibition against expropriation. Following the 90-day cooling-off period after the arbitration intention is formally submitted, the investors may initiate formal arbitration if their concerns are not addressed, signaling potential tensions between foreign investors and the South Korean government regarding regulatory practices in the wake of the data breach incident.