Congress targets South Korean regulators over 'discriminatory' treatment of US tech companies
US tech giant Coupang says it will 'fully cooperate,' with the House Judiciary Committee investigation.
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FIRST ON FOX: The House Judiciary Committee has opened a formal investigation into actions by South Korean regulators that lawmakers say may discriminate against American technology companies. In an attempt to learn more, the committee has issued a subpoena to U.S. e-commerce giant Coupang for documents and testimony on its experiences.
The e-commerce company, listed on the New York Stock Exchange, has emerged as one of the most visible examples cited by U.S. officials, lawmakers and investors of the abuse of U.S. companies by Seoul to better enable scrutiny of South Korea’s regulatory environment has intensified.
Committee Chairman Jim Jordan, R-Ohio, and Subcommittee Chairman Scott Fitzgerald, R-Wis., said the probe will examine whether foreign laws and enforcement actions are being used to target U.S. firms and undermine their ability to compete globally, according to a Feb. 5 letter sent to Coupang leadership.
US-SOUTH KOREA TRADE TENSIONS FLARE OVER TREATMENT OF AMERICAN TECH FIRMS INCLUDING COUPANG
In a statement to FOX Business, a spokesperson for Coupang said, "Coupang will fully cooperate with the U.S. House Judiciary Committee investigation, including production of documents and witness testimony as required by the subpoena."
A U.S. flag flies in front of the Capitol dome on Dec. 16, 2019, in Washington, D.C. (Samuel Corum/Getty Images)
Lawmakers wrote that the committee is conducting oversight into "how and to what extent foreign laws, regulations, and judicial orders are being used to discriminate against innovative American companies and infringe on the rights of U.S. citizens."
The subpoena requests communications between Coupang and South Korean authorities, as well as testimony from company representatives, as Congress seeks to determine the scope of what it views as potentially unfair enforcement practices.
The shared headquarters of Internet company Coupang and security company SentinelOne in the Silicon Valley town of Mountain View, California, Oct. 28, 2018. (Smith Collection/Gado/Getty Images)
The committee cited concerns about the Korea Fair Trade Commission and other agencies, arguing they have subjected U.S. firms to "punitive obligations, excessive fines, and discriminatory enforcement practices" in ways that could benefit domestic competitors.
Lawmakers also pointed to recent regulatory actions involving Coupang, including scrutiny and potential penalties following a data-related incident, which they said illustrate broader concerns about how American-owned companies are treated under South Korean enforcement.
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American and South Korean flags hang together at Yongin, South Korea, on Aug. 23, 2016. (Ken Scar/U.S. Army/Handout via Reuters)
According to the letter, the investigation is intended to inform potential legislation aimed at protecting U.S. companies and citizens from what Congress describes as discriminatory foreign regulations and enforcement decisions.
The committee said obtaining records from Coupang will help lawmakers assess how foreign policies and enforcement practices may affect Americans’ due process rights and U.S. companies’ ability to compete in global markets, as part of its oversight responsibilities.