More US Investors Sue South Korean Government Over Handling Of Coupang Data Breach

Coupang data breach triggers US investor lawsuits against South Korea under trade pact arbitration rules.
Matilda
More US Investors Sue South Korean Government Over Handling Of Coupang Data Breach
Coupang Data Breach Lawsuit Expands as US Investors Challenge Seoul U.S. investors are escalating legal action against the South Korean government over its regulatory response to Coupang's massive December 2025 data breach, transforming a cybersecurity incident into an international trade dispute. Five American investment firms now allege Seoul conducted a discriminatory investigation that unfairly targeted the Seattle-headquartered e-commerce giant, triggering arbitration proceedings under the U.S.-Korea Free Trade Agreement. The case raises critical questions about how nations regulate foreign-owned companies operating within their borders—and whether domestic enforcement actions can be challenged as trade violations. Credit: Jung Yeon-je / AFP / Getty Images What Happened in the Coupang Breach Coupang disclosed in early December 2025 that hackers had infiltrated its systems for more than five months, compromising personal information belonging to nearly 34 million South Korean cust…