Interview Coupang issue becomes bellwether for Korea's treatment of US firms: ex-AMCHAM chief

Korea risks damaging its economic ties with the United States, as perceived discrimination against American companies, most prominently Coupang, fuels a growing backlash in Washington that U.S. firms are being unfairly targeted, said Tami Overby, a former president of the American Chamber of Commerce in Korea (AMCHAM).

“Many American observers increasingly see Korea's treatment of Coupang as a bellwether for how it treats successful American firms operating in its market,” Overby said Monday in a written interview with The Korea Times.

After nearly four decades of observing Korea-U.S. economic ties, Overby said Washington is increasingly doubting whether Seoul remains committed to the principle of nondiscriminatory treatment for American businesses.

She cautioned that mounting regulatory disputes could erode the trust underpinning bilateral economic cooperation at a critical time when the two countries are negotiating major investment commitments and U.S. tariffs.

“Credibility depends not on statements but on outcomes,” she said, arguing that Korean authorities must demonstrate through their actions that U.S. companies receive equal treatment under domestic law.

She served as president and CEO of AMCHAM from 1995 to 2009 before becoming senior vice president for Asia at the U.S. Chamber of Commerce, a position she held from 2014 to 2017. She is now a partner at Washington-based advisory firm DGA Group.

Her warning comes as the two governments navigate negotiations involving Korea's $350 billion investment commitment in the U.S., including the proposed Alaska liquefied natural gas (LNG) project. The Donald Trump administration announced a $54 billion (71.6 trillion won) Korean investment in the project, although Seoul says it has not yet officially agreed.

Overby said those commitments deserve recognition, but cautioned that investment alone cannot offset Washington's concerns about regulatory treatment.

“The investment commitment is real and significant,” she said. “But investment alone cannot offset growing concerns about discrimination, regulatory targeting and strategic uncertainty.”

Coupang has become a focal point of the dispute.

The U.S.-listed e-commerce company has faced enforcement actions by Korea’s Fair Trade Commission (FTC) since disclosing a massive data breach affecting more than 33 million customers last November. The issue has attracted scrutiny from U.S. policymakers concerned about how U.S. businesses are treated in Korea, despite repeated explanations from Korean authorities that they do not discriminate against companies based on nationality.

The trade expert said the case is increasingly being viewed in Washington as part of a repeated pattern rather than an isolated regulatory matter. She pointed to the Personal Information Protection Commission's penalty against Coupang, as well as the FTC's record of imposing large fines on American companies.

“Alliances are built on reciprocity,” she said. “Economic partnerships depend on trust. When one side repeatedly promises nondiscrimination while a growing body of evidence suggests otherwise, it becomes increasingly difficult to maintain that trust.”

While Korean regulators may contend that individual cases are justified under domestic law, she said the cumulative pattern risks reinforcing perceptions that U.S. companies face disproportionate scrutiny.

The concerns extend beyond Coupang.

Overby cited Korea’s proposed digital platform legislation and restrictions affecting U.S. cloud service providers seeking public-sector contracts. Korea's Cloud Security Assurance Program has been a point of contention for U.S. tech companies, which argue that Korea-specific security requirements limit their access to the public cloud market.

Overby also pointed to a joint commitment made by Seoul and Washington last November that U.S. companies would not face discrimination or unnecessary barriers in areas including digital services, online platform regulation, network usage fees and cross-border data transfers.

She said subsequent regulatory and legislative developments risk undermining that commitment, making it harder for Seoul to reassure Washington that its rules are applied fairly.

“The U.S.-Korea relationship has weathered many challenges over the years,” she said. “The question now is whether Seoul recognizes the seriousness of the concerns emerging in Washington before those concerns begin to reshape the relationship itself.”

The dispute could take on greater significance if concerns over the treatment of U.S. companies spill over into broader bilateral talks.

Overby noted that some U.S. lawmakers have called for stronger responses to what they view as discriminatory treatment of American companies, including possible visa restrictions on foreign officials. While such proposals do not necessarily reflect established U.S. policy, their emergence highlights the issue’s growing political sensitivity in Washington, she said.