U.S. Investors Sue South Korean Government Over Coupang Data Breach

Lawsuit alleges discriminatory treatment of the U.S. e-commerce company

Published on Feb. 12, 2026

Got story updates? Submit your updates here. ›

A growing number of U.S. investors in the South Korean e-commerce company Coupang are taking legal action against the South Korean government, alleging discriminatory treatment in the government's response to a massive data breach at the company. The investors, including firms like Greenoaks, Altimeter, Abrams Capital, Durable Capital Partners, and Foxhaven Asset Management, are seeking international arbitration under the Korea–U.S. Free Trade Agreement (FTA), claiming the government's actions constitute an "unprecedented assault" on Coupang, a U.S.-headquartered company.

Why it matters

The Coupang data breach has become a geopolitical flashpoint, raising broader questions about whether South Korea is unfairly targeting U.S. companies. The investors argue the government's response to the breach was disproportionate compared to how it handled other recent data breaches in the country, suggesting potential discrimination against the U.S. firm. This case could impact trade relations between the U.S. and South Korea if the investors' claims of unfair treatment are substantiated.

The details

In December 2025, Coupang disclosed that nearly 34 million Korean customers' personal information had been leaked in a data breach that had been ongoing for more than five months. The breach involved customer names, email addresses, phone numbers, shipping addresses, and certain order histories. While other tech breaches in Korea resulted in less severe penalties, Coupang has faced extraordinary government pressure, with threats of massive fines, suspension of operations, and travel bans for executives. The investors allege the government also tried to block public communication and misrepresented the breach.

  • In December 2025, Coupang disclosed the data breach that had been ongoing for more than five months.
  • On January 23, 2026, U.S. investment firms Greenoaks and Altimeter filed a notice with South Korea's Ministry of Justice, saying they plan to pursue investor–state dispute settlement (ISDS) arbitration under the Korea–U.S. FTA.
  • On February 12, 2026, South Korea's Ministry of Justice said three more investors including Abrams Capital, Durable Capital Partners, and Foxhaven Asset Management have now joined the case.

The players

Greenoaks

A U.S. investment firm that is one of the plaintiffs in the lawsuit against the South Korean government.

Altimeter

A U.S. investment firm that is one of the plaintiffs in the lawsuit against the South Korean government.

Coupang

A South Korean e-commerce company that is majority-owned by U.S. investors and has its worldwide headquarters in Seattle, Washington.

South Korean Ministry of Justice

The government agency reviewing the notice of intent filed by the U.S. investors against the South Korean government.

Korea–U.S. Free Trade Agreement (FTA)

The trade agreement under which the U.S. investors are seeking international arbitration against the South Korean government.

Got photos? Submit your photos here. ›

What’s next

South Korea's Ministry of Justice is now reviewing the notice of intent filed by the U.S. investors, which kicks off a mandatory 90-day consultation period before formal arbitration can begin.

The takeaway

This case highlights the growing tensions between the U.S. and South Korea over the treatment of American technology companies operating in the country. The investors' claims of discriminatory government actions could have broader implications for trade relations between the two countries if the allegations are substantiated.