South Korea’s Ministry of Foreign Affairs has expressed strong disagreement with a recent U.S. House of Representatives report alleging discriminatory treatment of American businesses, including e-commerce giant Coupang. The ministry stated that the report unilaterally reflects Coupang’s claims and does not accurately represent the situation.
Ministry Denies Allegations of Unfair Treatment
During a regular briefing held at the Government Complex Seoul on the 2nd, a spokesperson for the Ministry of Foreign Affairs firmly refuted the report’s assertion that the South Korean government is engaging in discriminatory investigations and imposing unfair regulations on Coupang. “The content of the report claiming our government is conducting discriminatory investigations and imposing unfair regulations on Coupang is different from the facts,” the spokesperson stated.
Park Il, the ministry’s deputy spokesperson, elaborated on the government’s position. “Regarding the testimony and statements related to Coupang submitted to the U.S. House Ways and Means Committee, our government has consistently communicated our position through ongoing communication with the committee. However, we express our regret that the report released on the 1st unilaterally adopts only Coupang’s claims,” Park said.
Park further emphasized that investigations and measures concerning Coupang are being conducted lawfully and non-discriminatorily in accordance with domestic laws. “Our government is ensuring a fair business environment for all companies, regardless of their nationality,” he added.
Government’s Commitment to Fair Business Practices
The Ministry of Foreign Affairs outlined its future strategy to address the issue. The government plans to continue engaging with U.S. congressional committees and the executive branch to provide accurate information. “We will explain that our government is faithfully implementing the South Korea-U.S. Free Trade Agreement (FTA),” Park stated.
Additionally, the ministry intends to maintain close cooperation with the United States to ensure that issues related to Coupang do not negatively impact the broader security dialogue between the two nations. This proactive approach aims to prevent the trade dispute from spilling over into other critical areas of the bilateral relationship.
U.S. House Report Details Allegations
The U.S. House of Representatives Ways and Means Committee released a 35-page report titled “Blocked Competition: South Korea’s Discriminatory Assault on American-Owned Businesses” on its homepage. The report, based on evidence and documents obtained by the committee, claims that South Korea has targeted U.S.-owned businesses for years, with discriminatory practices intensifying recently.
The report specifically cited “coercive investigative methods, excessive regulations, and substantial fines and penalties that make it difficult for U.S. companies to compete with Korean businesses” as representative examples of these alleged discriminatory actions.
Focus on the Coupang Case
The report dedicates significant attention to the case of Coupang. It characterizes the data breach incident at Coupang as an “unauthorized access to the data system by a disgruntled former employee.” The report alleges that the South Korean government used this incident as a pretext for a “sweeping offensive.”
Furthermore, the report frames Coupang’s recovery of a hacker’s notebook from China as an “operation orchestrated by the National Intelligence Service (NIS).” It details Coupang’s claims that these actions were taken under the direction of the NIS. The report also includes an English translation of a cooperation document that Coupang reportedly received from the NIS.
The report contends that the South Korean government is utilizing digital-related laws and regulations to weaken the competitiveness of U.S. companies. It concludes by stating that South Korea’s discriminatory treatment of U.S. businesses is a direct violation of the recently concluded South Korea-U.S. FTA.
South Korea’s Stance on Trade and Regulations
South Korea maintains that its regulatory and investigative processes are applied fairly and without prejudice to all businesses operating within its borders. The government emphasizes its commitment to upholding the principles of fair competition and ensuring a level playing field for both domestic and foreign companies. The Ministry of Foreign Affairs has pledged to continue its dialogue with U.S. counterparts to clarify misunderstandings and provide factual information regarding its business environment and trade practices.
The government’s response underscores a commitment to transparency and adherence to international trade agreements. By actively engaging with U.S. officials and legislative bodies, South Korea aims to resolve the concerns raised in the report and reinforce the strong economic partnership between the two nations. The ongoing efforts are geared towards ensuring that trade relations remain robust and mutually beneficial, free from undue friction or misinterpretation.
