Coupang Inc. (CPNG) stock is drawing attention after a Republican-led U.S. House Judiciary Committee accused South Korean authorities of unfairly targeting the company, arguing that regulatory actions against the U.S.-based e-commerce firm intensified after a customer data breach last year.
The committee released an interim report on Wednesday, accusing South Korea of using its regulatory system to disadvantage U.S.-owned companies, with Coupang identified as a central example.
U.S. Lawmakers Scrutinize South Korea’s Actions Against CPNG
The committee says Coupang became the target of heightened scrutiny after a former employee improperly accessed a limited amount of customer information. Lawmakers allege South Korean officials expanded investigations beyond the original incident, publicly mischaracterized the company's role, and compelled the company to undertake recovery efforts, including retrieving devices and statements from the former employee in China.
The report further claims officials later denied their involvement in those efforts and threatened criminal charges against Coupang's American chief executive.
While initial reports linked the breach to 33.7 million accounts, Coupang later said data from only about 3,000 accounts was retained.
South Korea's Personal Information Protection Commission fined Coupang about $410 million, including $278 million over its 2025 data breach and $132 million for alleged data privacy violations tied to a third-party advertising program.
Coupang stock inched 0.6% lower in Thursday’s premarket. On Stocktwits, retail sentiment around the stock improved to ‘neutral’ from ‘bearish’ territory the previous day.
Committee Flags Trade And Competition Concerns
The report explains that South Korea has adopted laws and regulatory policies that make it more difficult for U.S. technology companies to compete while favoring local firms.
Committee staff contends those actions conflict with commitments made under the countries' trade agreement.
“South Korea's economic discrimination against American-owned businesses is part of a larger pattern of foreign governments weaponizing their broad discretion under competition laws and other regulatory regimes to shield their domestic industries from U.S. competition, said the Committee.
According to a Reuters report, South Korea rejected the committee's findings. Foreign Ministry spokesperson Park Il said the report presented only one side of the story and relied too heavily on Coupang's claims, despite months of discussions between the government and the committee.
CPNG stock has declined by 23% year-to-date.