Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
US bill targets foreign officials over alleged discrimination against American firms
Korean Ambassador to the United States Kang Kyung-hwa, left, poses with U.S. Rep. Michael Baumgartner during their meeting in Washington D.C., June 4. Courtesy of Korean Embassy in the U.S.
By Nam Hyun-woo
Bill points to Korea's regulatory actions against Coupang as leading case
A bill that could bar foreign officials accused of discriminating against American companies from entering the United States has been introduced, carrying potential implications for Korea-U.S. relations by citing the Korean government's investigation into e-commerce platform Coupang over its massive customer data breach as a key example.
U.S. Rep. Michael Baumgartner on Thursday (local time) filed the bill, or the proposed No Racketeers on Our Shores Act, which seeks to impose an entry ban for foreign officials “who weaponize the government to discriminate against American companies.”
According to a fact sheet on the bill, it would amend the U.S. Immigration and Nationality Act to deny entry to, or deport, foreign government officials who engage in economic discrimination against U.S. individuals or companies.
It targets officials who use government authority to impose investigations, fines, taxes, licensing decisions or other regulatory measures on American businesses more harshly than on similarly situated domestic or non-U.S. companies.
Coupang's office in Seoul / Yonhap
Baumgartner cited Coupang’s case as a key example. Citing findings from the U.S. House Judiciary Committee, he noted that Korean authorities had “subjected American-owned Coupang to a broad government campaign involving more than 10 government agencies; dozens of unrelated investigations involving more than 4,000 document requests and at least 652 employee interviews; and a fine exceeding $410 million.”
“American companies should compete abroad on the strength of their products — not against foreign bureaucrats determined to tilt the playing field,” Baumgartner said. “Across the globe, we are seeing a worrying pattern of foreign governments imposing selective investigations, punitive fines, discriminatory taxes and regulatory obligations that fall overwhelmingly on American-owned businesses.”
Last year, a massive Coupang data leak affecting more than 33 million users triggered a parliamentary hearing, a parliamentary investigation and scrutiny from multiple Korean regulators. In June, the Personal Information Protection Commission (PIPC) imposed a record 620 billion won ($447 million) fine over the case, while the Fair Trade Commission (FTC) has also launched a separate probe.
Multiple U.S. Republican lawmakers and a U.S. House committee criticized the series of investigations and regulatory actions as discriminatory treatment toward the American-owned e-commerce company.
Ministry of Foreign Affairs Spokesperson Park Il speaks during a press conference on expressing Korea's regret on a U.S. House Judiciary Committee report on Coupang's case at Government Complex Seoul, July 2. Yonhap
On July 1, the U.S. House Judiciary Committee released a staff interim report alleging that the Korean government had subjected Coupang to discriminatory treatment through excessive investigations and regulatory actions.
The Korean government expressed regret over the report, saying it distorted the facts based on unverified claims. It requested that the U.S. Congress correct inaccurate information and include key facts omitted from the report.
The U.S. side has cited the PIPC's fine and other regulatory actions against Coupang as examples of discrimination against an American company, but the Korean government has stressed that the measures were taken in line with domestic laws and procedures regardless of the company's nationality.
The FTC and the PIPC declined to comment on the bill.
Baumgartner has been among the leading Republican lawmakers raising concerns over the Coupang case. In April, he and 53 Republican lawmakers sent a letter to Korean Ambassador to the United States Kang Kyung-hwa, alleging that the Korean government had subjected Coupang to politically motivated and discriminatory regulatory actions.