Coupang, the U.S. subsidiary of the South Korean e-commerce giant, has distanced itself from the international investment dispute (ISDS) notice submitted by its American shareholders regarding the company’s data breach incident.
On Friday, Coupang clarified that the ISDS notice filed by U.S. investors is unrelated to our company’s position. It is fully cooperating with all government investigations.
The Ministry of Justice announced that American shareholders of Coupang, including Greenoaks and Altimeter (hereinafter referred to as the claimants), had submitted an ISDS notice to the South Korean government, citing the Korea-U.S. Free Trade Agreement (FTA).
An ISDS notice is a formal document indicating the claimant’s intent to initiate arbitration against the host country. While it doesn’t constitute an official arbitration request, claimants can formally begin arbitration proceedings 90 days after submitting the notice.
The notice alleges that following a data breach on December 1, 2025, the National Assembly and executive branch targeted Coupang with various administrative actions and threatening statements.
The claimants argue that these actions violate several provisions of the Korea-U.S. FTA, including fair and equitable treatment (Article 11.5(1)), national treatment and most-favored-nation treatment (Articles 11.3 and 11.4), comprehensive protection (Article 11.5(2)), and prohibition of expropriation (Article 11.6).
Furthermore, they claim to have suffered billions of dollars in damages as a result.
The shareholders have also petitioned the U.S. government, alleging discriminatory treatment of Coupang by South Korean authorities and demanding an investigation and appropriate measures.
Reuters reports that Greenoaks and Altimeter have asked the U.S. Trade Representative (USTR) to investigate South Korea’s actions and impose suitable trade remedies, potentially including tariffs and other sanctions.
They contend that the South Korean government’s wide-ranging investigations into labor practices, finances, and customs are largely unrelated to the data breach and appear aimed at undermining Coupang’s business operations.
The claimants are calling on the South Korean government to cease these allegedly discriminatory actions and restore a fair and predictable business environment for American companies operating in Korea.