In connection with the Coupang data breach incident, shareholders of Coupang’s U.S. subsidiary have notified the government of their intent to initiate international investment dispute (ISDS) arbitration.
The Ministry of Justice announced on Thursday afternoon that U.S. shareholders of Coupang, including Greenox and Altimeter (hereinafter referred to as the claimants), submitted a notice of intent to arbitrate to the South Korean government, citing the Korea-U.S. Free Trade Agreement (FTA).
A notice of intent to arbitrate is a written document in which claimants express their intention to initiate arbitration to the opposing country. While it does not constitute a formal arbitration request, claimants can formally initiate arbitration 90 days after submitting the notice.
According to the notice of intent, the claimants asserted that following the data breach incident at Coupang on December 1, 2025, the National Assembly and executive branch targeted Coupang with various administrative actions and threatening statements across multiple fronts.
They argued that these actions violated several obligations under 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, the claimants alleged that these actions resulted in damages amounting to billions of dollars.
The Ministry of Justice stated that it will establish a joint response system centered around the International Investment Dispute Response Team to thoroughly examine the legal issues related to the notice of intent to arbitrate. The Ministry also pledged to actively respond by disclosing relevant information to enhance public awareness and procedural transparency.
