Greenoaks files arbitration notice against South Korea over Coupang treatment

Investment firms Greenoaks and Altimeter filed formal notice of their intent to pursue arbitration claims against South Korea under the U.S.-Korea Free Trade Agreement, alleging discriminatory treatment of U.S. company Coupang Inc. (NYSE: CPNG).

The firms also petitioned the U.S. Trade Representative to investigate South Korea's conduct under Section 301 of the Trade Act of 1974 and impose trade remedies, according to a press release statement.

The actions follow what the investors describe as escalated regulatory scrutiny of Coupang after a 2025 data breach involving approximately 3,000 accounts. The investors claim South Korean officials mobilized more than a dozen government agencies, conducted repeated raids, and launched enforcement actions involving hundreds of officials.

According to the filing, South Korea's Democratic Party administration formed a 150-member National Tax Service task force and an 86-member police task force focused on investigating Coupang. The government also pressured the national pension fund to divest its Coupang holdings and blocked commercial agreements unrelated to the data breach.

"When a close ally penalizes a U.S. company for its success, it compromises a vital partnership and opens the door to competitors that don't play by the rules," said Neil Mehta, Founder and Managing Partner of Greenoaks.

The investors claim South Korean Prime Minister Kim Min-seok urged regulators to approach enforcement against Coupang "with the same determination used to wipe out mafias." Officials also referred several Coupang executives for criminal prosecution, including Chairman Bom Kim and Chief Administrative Officer Harold Rogers, both U.S. nationals.

The investors state that Coupang has faced hundreds of audits, inspections, and raids, resulting in more penalties than any other company in Korean history. They claim the company's market capitalization declined by billions of dollars following the government's response to the data incident.

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