South Korea‑U.S. Tensions Rise Over Coupang Data‑Leak Fine

South Korea has imposed a US$422 million fine on e‑commerce giant Coupang after a data leak that exposed personal information of about 35 million users. The penalty has drawn sharp criticism from Washington, where officials fear the move tests Seoul’s openness to American technology and could jeopardise broader bilateral cooperation.

The dispute has prompted Seoul’s ambassador to the United States, Kang Kyung‑wha, to return to the capital for consultations with President Lee Jae‑myung’s administration. U.S. concerns extend to a pending US$350 billion Korean investment pledge, Seoul’s plan to acquire nuclear‑powered submarines, and coordination on China and North Korea. Additionally, the State Department warned that recent Korean amendments to communications laws could enable excessive content regulation affecting platforms such as Google, Meta, X and TikTok.

South Korean lawmakers stress the fine is a domestic privacy issue, not a sign of anti‑U.S. bias, while some U.S. congressional Republicans back Coupang’s position.