Coupang faces pressure to broaden US lobbying strategy after midterms

Coupang is facing growing pressure to broaden its lobbying strategy in the United States beyond its Republican allies following the Democrats' sweeping midterm election victory, experts and industry officials said Sunday.

The change could be particularly impactful for the e-commerce giant, whose lobbying efforts have helped draw attention in Washington to its dispute with Korean regulators. Republican lawmakers, including members of the House Judiciary Committee, have publicly criticized what they described as discriminatory treatment of the U.S.-headquartered firm in Korea.

With Democrats now set to control both chambers of Congress, the institutional backing Coupang has received from Republican lawmakers is expected to weaken, prompting experts and industry watchers to say the company will have to broaden its relationships across both parties to maintain its influence in Washington.

“Especially for a digital-focused firm like Coupang, which remains subject to policies under the Republican administration, it is important to balance lobbying efforts between Democrats and Republicans,” said Shin Won-kyu, head of the global economic research team at the Federation of Korean Industries.

Coupang's political spending already shows signs of such a shift.

According to political contribution records filed with the Federal Election Commission, COUPAC, a political action committee established by Coupang to support U.S. congressional candidates, contributed $185,000 (252 million won) to members of Congress and affiliated political organizations during the first three quarters of this year, up 18.2 percent from a year earlier.

Of this year's contributions, $107,000 went to Democratic lawmakers, Democratic-affiliated election organizations and political action committees, while $78,000 went to Republicans and their affiliated groups.

Coupang's contributions to Democrats jumped 52.9 percent from a year earlier, while those to Republicans fell 9.8 percent. The figures indicate that the company had already stepped up its overall political spending ahead of the midterms, anticipating a Democratic victory.

The shift suggests Coupang had begun preparing for a possible change in the balance of power.

"Coupang should pursue lobbying on roughly a 50-50 basis to maintain a balance in the U.S.," said Kim Dae-jong, a professor of business administration at Sejong University. “U.S. President Donald Trump is still a Republican, while Democrats now control both chambers of Congress.”

The need for a bipartisan strategy is closely tied to the nature of Coupang's regulatory dispute in Korea. The company has faced scrutiny from Korean authorities over its handling of a massive data breach and other alleged business malpractices, and some U.S. lawmakers have raised concerns about whether Korean regulators are treating U.S. companies fairly.

In July, Republican Rep. Michael Baumgartner, a vocal supporter of Coupang in Congress, introduced a bill that would bar foreign government officials from entering the U.S. if they engage in economic discrimination against U.S. companies.

He won reelection in Washington state, but will return to a House controlled by Democrats — underscoring the need for Coupang to expand its lobbying reach beyond Republican allies.

Industry officials said Coupang could step up its lobbying efforts in the U.S. as it seeks to defend itself against regulatory pressure in Korea.

“Korean regulatory authorities show no signs of backing down from their hard-line stance against Coupang’s data breach or other unfair business activities, so the company will rely more on U.S. lobbying to raise its voice against Korean authorities,” an industry official said.

A Coupang spokesperson declined to comment on the details of its U.S. lobbying strategy.