The U.S. government expressed concern on Thursday regarding South Korea’s Personal Information Protection Commission’s imposition of a 624.6 billion KRW (approximately 410.6 million USD) fine on Coupang. This highlights regulatory and enforcement issues affecting American tech companies in South Korea.
A U.S. government official, responding to a News1 inquiry about this record-breaking fine, stated that the U.S. government continues to have concerns about regulatory and enforcement actions that appear to target or discriminate against American tech companies, including Coupang.
This statement reaffirms the U.S. government’s ongoing apprehension regarding South Korea’s regulatory practices and enforcement measures concerning American tech firms, including Coupang.
However, the official refrained from providing specific evaluations of this fine or outlining any future response strategies.
The South Korean Personal Information Protection Commission recently decided to impose a total fine of 624.681 billion KRW (about 410.7 million USD) and an additional penalty of 16.8 million KRW (about 11,000 USD) on Coupang.
The Commission determined that Coupang failed to fulfill its data security obligations, resulting in the leak of personal information for approximately 37.5 million individuals. Additionally, the company was found to have collected members’ online activity records without legal grounds.
Previously, the South Korean government indicated its intention to explain the rationale behind this decision to the U.S.
A South Korean Foreign Ministry official told reporters that the Commission conducted a fair investigation according to established domestic legal procedures, under the principle of imposing sanctions proportionate to the responsibility. Coupang was given ample opportunities to present its case during the investigation process.
The official continued that as mentioned in the Joint Statement from the U.S.-Korea summit, it will calmly explain the Commission’s decision regarding Coupang to the U.S. while maintaining a non-discriminatory policy toward American digital companies.
They also noted that they’re in ongoing communication with the U.S. to ensure that the investigation related to Coupang adheres to domestic legal procedures, and confirmed that they would explain today’s administrative decision to the U.S. as well.
