Major Coupang investors in the United States have asked the U.S. government to investigate and take trade action, saying South Korean government regulations on Coupang are unfair. They have also reportedly begun international arbitration proceedings against the South Korean government, alleging violations of the Korea-U.S. free trade agreement (FTA).

Foreign media, including Reuters, reported on Jan. 22 that Greenoaks and Altimeter, key investors in Coupang, filed a petition with the Office of the U.S. Trade Representative (USTR). The petition asks the USTR to examine whether the South Korean government acted appropriately toward Coupang and to take suitable trade remedies, including tariffs.

The investors said South Korean authorities have continued discriminatory administrative measures targeting Coupang. They said the South Korean government has been conducting a targeted probe of Coupang since a personal data leak last year, and that investors suffered losses of several billion dollars as a result.

The investors are also reported to have filed a separate arbitration request against the South Korean government based on the Korea-U.S. FTA.

The government is conducting a strict probe into whether there were legal violations. It set up a joint investigation team on Coupang after a personal data leak affecting 33.7 million people in November last year.