Greenoaks and Altimeter have formally notified the Republic of Korea Government of their intent to file arbitration under the U.S.-Korea Free Trade Agreement, asserting that Coupang has been subjected to discriminatory treatment. Concurrently, the investors have petitioned the U.S. Trade Representative to launch an investigation under Section 301 of the Trade Act of 1974 and impose trade remedies. The Notice of Intent and full petition, which outline alleged breaches of KORUS protections and request countermeasures, are publicly available for download.

According to the filings, Coupang has endured over 300 regulatory actions since May 2023, including 120 audits by the National Tax Service, 45 on-site inspections by the Ministry of Employment and Labor, and 30 inquiries from the Financial Supervisory Service. Investors contend that no other foreign or domestic e-commerce firm in Korea has faced comparable scrutiny. These measures intensified after a data incident affecting roughly 3,000 accounts, which regulators and ruling party officials inflated to suggest tens of millions of victims, prompting mass raids, contract blocks, and public calls by senior officials to impose record-breaking fines designed to force Coupang out of business.

Greenoaks estimates that Coupang’s market capitalization declined by over $8 billion following regulatory actions and public statements by the Korean Prime Minister comparing enforcement to actions ‘to wipe out mafias.’ U.S. pension funds and institutional shareholders are said to have borne the majority of these losses. Neil Mehta, Greenoaks’ Managing Partner, warned that unchecked political enforcement jeopardizes U.S.-Korea trade relations and could embolden competitors that operate without respect for international agreements.