Coupang dispute with U.S. calls for a diplomatic off-ramp

An unusual public disagreement unfolded late last week as officials from the White House and Korea's presidential office presented sharply opposing views over the investigation into Coupang's alleged personal data leak. Following a report by the U.S. House Judiciary Committee, the White House characterized a series of actions taken by the Korean government against Coupang as a "targeted investigation" of an American company. Seoul, however, maintains that its investigation was conducted without regard to nationality and that no discriminatory treatment was involved. The two sides remain far apart.

The disagreement has begun to spill beyond the case itself. Differences over the Coupang investigation are now overlapping with broader tensions in the bilateral relationship, slowing follow-up negotiations on major security issues agreed upon at the Korea-U.S. summit, including cooperation on building nuclear-powered submarines and revising the bilateral nuclear agreement. The dispute has evolved from a corporate matter into a diplomatic challenge that must be managed within the broader framework of the alliance.

The Korean government argues that its investigation is being conducted in accordance with domestic law and applies equally regardless of a company's nationality. It also contends that allegations involving the leak of 33 million personal data records by a former Chinese employee concern national security rather than ordinary corporate regulation. That argument carries weight. National Security Adviser Wi Sung-lac noted that if personal information belonging to roughly two-thirds of the American population had been transferred to China, the United States would also have responded forcefully.

Still, the legitimacy of law enforcement and the effectiveness of diplomatic persuasion are not the same. The government has almost certainly conveyed its position through multiple diplomatic channels. Yet if the White House and Congress remain unconvinced, Seoul should carefully assess why its explanations have failed to gain understanding. Diplomacy does not end with asserting that one's position is correct. It also requires minimizing misunderstandings and building confidence.

Most concerning is that the Coupang controversy is already affecting other areas of Korea-U.S. cooperation. In April, Wi acknowledged that although Coupang is fundamentally a corporate issue, it has influenced bilateral security consultations. He also admitted that security talks have been delayed and warned that such delays benefit neither side nor the alliance as a whole.

Korea cannot afford to let this situation drag on. The government should make a more systematic effort to explain the facts to the U.S. administration and Congress while seeking a diplomatic off-ramp. Upholding the principles of law enforcement while restoring trust between allies is the challenge that now demands Seoul's attention.