SEOUL — The diplomatic tension between Washington and Seoul has escalated following a recent report by the U.S. House Judiciary Committee, which accused the South Korean government of unfairly targeting the e-commerce giant Coupang.

The conflict stems from an ongoing investigation by Korean authorities into a massive personal data breach involving Coupang. On Tuesday (local time), the Trump administration officially expressed "deep concern," asserting that the South Korean government is singling out the U.S.-backed company for discriminatory regulatory scrutiny.

U.S. Accusations vs. Seoul’s Rebuttal

A 35-page interim report released by the U.S. House Judiciary Committee on July 1st claimed that the South Korean government’s approach to the data breach investigation is inherently biased against American firms. White House officials echoed these sentiments, stating that "under any reasonable metric, the Lee Jae-myung administration appears to be targeting Coupang."

In response, South Korean National Security Advisor Wi Sung-lac held a briefing at the Chunchu-gwan on July 3rd to firmly refute the allegations. "All investigations are conducted in accordance with domestic law, adhering to due process and principles of non-discrimination," Wi stated. He emphasized that the government does not treat companies differently based on their nationality, nor does it selectively target them for investigations.

Wi also criticized the U.S. report for heavily relying on the unilateral claims of Coupang, which is currently the subject of a criminal investigation. "It is important to remember that Coupang is currently a subject of a police investigation and holds the status of a suspect," Wi noted. He drew a parallel to the U.S. context, suggesting that if similar data involving two-thirds of the American population had been leaked to China, it would be treated as a matter of severe national security, not just a regulatory issue.

Diplomatic Fallout and Strategic Separation

The report, authored by Republican staffers on the House Judiciary Committee, is not a final bipartisan document, and Washington sources suggest it may never become one. Despite the potentially non-binding nature of the report, the South Korean government is taking the matter seriously to prevent it from spilling over into other critical areas of cooperation.

Advisor Wi highlighted the administration’s commitment to "continued communication" with the U.S. to bridge the gap in understanding. "We will make every effort to ensure that this incident remains isolated and does not influence other key pillars of the South Korea-U.S. alliance," he added. This statement is widely interpreted as a signal that Seoul aims to protect sensitive ongoing negotiations, such as those regarding nuclear-powered submarine construction and broader security cooperation, from the impact of this commercial dispute.

President Lee’s Upcoming Diplomatic Schedule

Amid these diplomatic frictions, President Lee Jae-myung is set to embark on a three-night, five-day overseas trip starting July 7th. The President will first travel to Ankara, Türkiye, to attend the NATO Summit. During the summit, he is scheduled to participate in a small-group meeting with leaders from the Indo-Pacific partners—Japan, New Zealand, and Australia—collectively known as the IP4.

Following his attendance at the NATO Summit, President Lee will head to Mongolia on July 9th for a state visit. The upcoming tour will be a critical test of the administration's diplomatic agility as it seeks to navigate trade tensions with the U.S. while bolstering strategic partnerships across Europe and the Indo-Pacific.

As both sides continue to exchange strong rhetoric, the global business community remains focused on whether the investigation into Coupang will lead to a broader shift in the regulatory environment for foreign tech firms operating in Korea, or whether the two allies can successfully navigate these differences through behind-the-scenes diplomacy.

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