Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
FTC softens stance on Coupang amid US tariff pressure
Coupang interim CEO Harold Rogers appears for police questioning at Seoul Metropolitan Police Agency headquarters in Seoul, Jan. 30. Korea Times photo by Shim Hyun-chul
By Lee Min-hyung
Shift comes ahead of Coupang interim chief’s US testimony
Korea’s antitrust watchdog appears to be easing its hard-line regulatory stance against Coupang, in an apparent strategic retreat amid concerns over potential trade friction with the United States.
On Thursday, the Fair Trade Commission (FTC) said it cannot impose a business suspension on Coupang over last year’s data breach, citing a lack of evidence showing specific financial damage to users resulting from the leak.
This sharply contrasts with FTC Chairman Ju Biung-ghi’s previous messaging regarding Coupang. He remained stern in his regulatory view, leaving open the possibility of slapping a business suspension on the firm.
The shift is seen as a calculated move to avoid potential trade tensions with Washington at a sensitive time, as Coupang interim CEO Harold Rogers is slated to testify before the U.S. House Judiciary Committee on Feb. 23. He will comment on his treatment during the probe by Korean police and authorities.
Rogers’ upcoming appearance before the committee has heightened concerns that the ongoing Coupang scandal here could spill into a wider trade conflict between Seoul and Washington.
Korea is walking on eggshells after the Donald Trump administration warned that it could reinstate its tariff on imports of Korean products to 25 percent from the current 15 percent, citing Seoul’s delayed legislation on its investment commitment in Washington.
U.S. lawmakers also criticized Seoul’s investigation into Coupang, calling it “discriminatory targeting” of a U.S.-based firm.
Coupang interim CEO Harold Rogers appears at Seoul Metropolitan Police Agency headquarters in Seoul, Jan. 30. He was investigated regarding the firm's massive data leak incident last year. Korea Times photo by Shim Hyun-chul
President Lee Jae Myung and the ruling Democratic Party of Korea (DPK) are moving to tone down their harsh rhetoric against Coupang. Before Trump’s warning of a potential tariff hike, the Lee administration and ruling party lawmakers had repeatedly issued public criticism of the company.
In recent weeks, however, such rhetoric has noticeably subsided, coinciding with the shift in the FTC’s stance.
“Seoul is increasingly cautious that its trade ties with Washington may be at stake, so the government seems to be recalibrating its approach by toning down its rhetoric against Coupang,” an industry official said.
Korea is highly likely to impose fines on Coupang and order the firm to rectify its business practices to avoid any additional data leaks, according to Rep. Kim Nam-geun of the DPK.
“The FTC said it is not considering any business suspension for Coupang, as investigators did not find any evidence of the leaked data being stolen by a third party,” Kim said Thursday during a press conference on the Coupang scandal.