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Korea’s intense scrutiny of Coupang risks US trade ties: former security adviser

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Robert O'Brien, a former national security adviser, attends an interview during the Republican National Convention near the Fiserv Forum in Wisconsin on July 17, 2024. (Getty Images)A former security adviser to US President Donald Trump cautioned against South Korea’s tough regulatory response to a massive data breach at Coupang, the US-listed company that primarily operates in Korea, warning that aggressive oversight could strain bilateral ties.

Robert O’Brien, who served as national security adviser from 2019 to 2021 under Trump, argued in a social-media post Wednesday that President Trump had “worked hard to rebalance the trade relationship with Korea,” and that targeting US technology firms would undercut those efforts.

Although Coupang operates primarily in Korea, it is legally a US company, with its Korean unit wholly owned by Coupang Inc., which is listed on the New York Stock Exchange.

“The National Assembly’s aggressive targeting of Coupang will set the stage for further KFTC discriminatory measures and broader regulatory barriers towards US firms,” he wrote on X, referring to the Korea Fair Trade Commission.

O’Brien added that “a strong, coordinated US response is essential to safeguard fair treatment of US companies and maintain strategic balance against China’s growing economic influence in the sector.”

His comments followed stepped-up calls by Korean lawmakers for tougher oversight and accountability after Coupang Inc. disclosed that data linked to about 33.7 million customer accounts had been compromised.

The matter is being handled with unusual severity in Korea, prompting parliamentary hearings and the creation of a government-wide task force. On Thursday, the presidential office convened an emergency ministerial-level meeting to discuss the data breach.

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