U.S. Investors Join Legal Dispute With South Korea Over Coupang Data Breach

Investors claim Seoul's regulatory response caused severe financial harm

Published on Feb. 18, 2026

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A fresh wave of U.S.-based investment firms, including Abrams Capital, Durable Capital Partners, and Foxhaven Asset Management, have joined an ongoing legal confrontation with the government of South Korea over its handling of a large-scale cybersecurity incident involving e-commerce giant Coupang. The investors allege that the government's actions after a major data breach significantly affected shareholder value, resulting in billions in losses, and amounted to discriminatory treatment that damaged investor confidence.

Why it matters

The case highlights growing tensions between the U.S. and South Korea over the treatment of American companies operating in the country, with the dispute testing corporate accountability for data breaches as well as the strength of international investment protections.

The details

In November 2025, Coupang announced that personal information belonging to roughly 33 million customers in South Korea had been exposed in a cyber incident. The investors pursuing arbitration argue that the government's regulatory measures taken in response were disproportionate and damaged investor confidence, significantly affecting shareholder value and resulting in billions in losses.

  • In November 2025, Coupang announced a major data breach affecting 33 million customers.
  • On February 11, 2026, three additional U.S. investment firms joined the legal dispute against the South Korean government.

The players

Coupang

A leading e-commerce platform in South Korea, founded by Korean-American entrepreneur Bom Kim.

Abrams Capital

A U.S.-based investment firm that has joined the legal dispute against the South Korean government.

Durable Capital Partners

A U.S.-based investment firm that has joined the legal dispute against the South Korean government.

Foxhaven Asset Management

A U.S.-based investment firm that has joined the legal dispute against the South Korean government.

Greenoaks Capital

A U.S.-based investment firm that had already initiated legal action against the South Korean government.

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What they’re saying

“American policymakers and investors increasingly view the case as an example of the need to defend U.S. companies against what they see as unfair foreign government actions.”

— Neil Mehta, Founder and Managing Partner, Greenoaks Capital (itsecuritynews.info)

What’s next

The South Korean Justice Ministry has confirmed receipt of the additional notices and stated it will respond through its International Investment Dispute Response Team, indicating the government intends to formally defend its position.

The takeaway

This dispute highlights the growing tensions between the U.S. and South Korea over the treatment of American companies operating in the country, with the case testing corporate accountability for data breaches and the strength of international investment protections.