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Why U.S. Republicans suddenly weighed in on Coupang’s data scandal

Published: 28 Dec. 2025, 19:35

PARK EUN-JEE
[email protected]

CHO YONG-JUN
[email protected]

A Coupang Logistics Center worker is seen next to Coupang delivery trucks in Seoul on Dec. 17. [YONHAP]

[EXPLAINER]

In an emergency meeting convened over the massive Coupang data breach, the Blue House summoned not only senior officials from technology and privacy regulators but also from the National Security Office, the Ministry of Foreign Affairs and the National Intelligence Service.

The composition of the attendee list reflects the extent to which the data leak affecting 33.7 million users has escalated into a political and diplomatic flashpoint following public criticism in the United States over the Korean government’s handling of the New York-listed e-commerce giant.

Korean lawmakers, on the other hand, accuse Coupang of deploying its lobbying circuit in Washington to evade responsibility for mishandling customers’ private data, which was first unveiled on Nov. 20, reportedly affecting some 4,000 users — only to be corrected to 33.7 million on Nov. 29.

Why is the case turning into a diplomatic controversy?

It has taken on transnational dimensions due mainly to Coupang’s unique positioning — firmly rooted in the Korean market but traded on the Nasdaq. Some Republicans have framed the issue as U.S. tech companies facing excessive regulation in Korea.

“The National Assembly’s aggressive targeting of Coupang will set the stage for further KFTC [Korea Fair Trade Commission] discriminatory measures and broader regulatory barriers towards U.S. firms,” read an X post by Robert O'Brien, a Republican foreign policy adviser who previously served as national security advisor during U.S. President Donald Trump’s first term.

The remark dovetails with assertions by both Trump and U.S. lawmakers during trade negotiations with Seoul that U.S. firms face “nontariff barriers” in Korea. Industry insiders believe that such comments take aim at the platform regulation bill currently being drafted by Seoul's Fair Trade Commission, which mandates Big Tech companies to disclose the details of contracts and commission structures.

“Many familiar American companies — like Apple, Coupang, Google, Meta, Netflix and Uber — have all been targeted, among others,” stated Rep. Darrell Issa, a Republican of California, in an op-ed published in The Daily Caller on Dec. 22, adding that he sees “a campaign of aggression from within the Korean government that is targeting American businesses and even American citizens.”

Republican Congressman Darrell Issa, House Foreign Affairs Committee Vice Chairman, attends a meeting with Egyptian foreign minister at the Foreign Affairs Ministry headquarters at the New Administrative Capital in Cairo, Egypt, on Feb. 16 [EPA/YONHAP]

Is this the result of Coupang’s lobbying in Washington, and how strong is its lobbying presence?

It is hard to verify whether the comments are driven by lobbying.

Coupang has, however, been lobbying the U.S. Department of State, Department of Commerce, members of the U.S. House of Representatives and Senate, the National Security Council and the United States Trade Representative since it was listed on Nasdaq in March 2021.

The company declined to comment on the matter.

It also donated $1 million to the inauguration committee of President Trump last year.

Coupang's lobbying budget increased year after year, with the $1.01 million spent on lobbying in the year it went public rising to $3.87 million in 2024. The company is known to have spent $2.51 million as of the end of the third quarter of 2025.

coupang lobby updated

Comparatively, while top-cap firms like Amazon spent $19.14 million on lobbying in 2024 — over five times the money spent by Coupang — the money Coupang spent is higher than DoorDash's $1.64 million and Uber's $2.62 million spent last year.

Under the Trump administration, Coupang has hired big-name lobbyists with ties to the administration’s inner circle.

Notably, the e-commerce firm spent $270,000 this year on Miller Strategies, the lobbying firm founded by Jeff Miller, a longtime Republican strategist who served as the finance chair of President Trump's inauguration committee. The company also hired Continental Strategies, where a close associate of Secretary of State Marco Rubio, Alberto Martinez, is, in addition to other pro-Republican lobbyists.

Such lobbying activity has disgruntled Korean lawmakers.

Rep. Kim Woo-young of the Democratic Party criticized Coupang’s lobbying tactics, calling them “an attempt to turn legitimate domestic regulation and sanctions into a trade or security conflict between Korea and the United States.”

Where does Coupang fall on the political spectrum?

Coupang has never publicly stated any political affiliation — unsurprisingly — but its withdrawal from the progressive Korean Confederation of Trade Unions in 2023 led many to view the company as leaning conservative. The decision to split was passed by a vote, with 93 percent of Coupang’s labor union members supporting the move.

In handling labor-related issues and overwork-related deaths, the company is deemed to have shown a conservative and passive stance, a point of contention with the current Lee Jae Myung administration, which has put a stronger emphasis on labor protection, although critics say it comes at a cost, with tighter reins on businesses.

BY PARK EUN-JEE, CHO YONG-JUN [[email protected]]