The U.S. meddling in investigations into Coupang and Bang Si-hyuk··· successive ‘turning it into a diplomatic issue’ adds to the Korean government’s burden - 경향신문

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The U.S. administration has been continually raising the Coupang issue

The U.S. requests lifting the travel ban on Hybe Chair Bang Si-hyuk

Harold Rogers, Coupang Korea’s interim representative, who is suspected of destroying evidence through a ‘self-investigation’ regarding Coupang’s large-scale personal data leak, speaks to the press as he appears at the Seoul Metropolitan Police Agency on January 30. Moon Jae-won

Fifty-four Republican members of the U.S. House called for an end to discriminatory regulatory measures targeting American companies. As the United States draws issues involving private companies such as Coupang and Hybe into the diplomatic arena, the burden on the Korean government is growing. These companies are under investigation in accordance with domestic legal procedures on allegations of personal data leaks and fraudulent transactions.

Fifty-four House members belonging to the Republican Study Committee (RSC), one of the largest policy groups within the Republican Party, said in a letter sent on the 21st (local time) to Kang Kyung-wha, South Korea’s ambassador to the United States, that they “urge an immediate halt to discriminatory regulatory measures targeting American companies operating in Korea.” They also suggested that the Korean government is pressuring Coupang and said this should stop.

The U.S. administration has also been raising the Coupang issue with the Korean government since last November, when the personal data leak at Coupang surfaced and the police launched an investigation. The U.S. side has conveyed to the government that an American company, Coupang, should not be subjected to unfair discrimination or treatment in Korea. U.S. Vice President JD Vance also brought up the Coupang issue when he met with Prime Minister Kim Min-seok in January.

The Korean government’s position is that there is no discrimination against Coupang and that this is a matter related to domestic judicial procedures. To avoid being drawn into Coupang’s intentions, the government sought to prevent the issue from escalating into a diplomatic one. However, as the U.S. side keeps putting the Coupang matter on the diplomatic table, it is becoming a highlighted point of contention between South Korea and the United States. A government source said, “The Coupang issue between South Korea and the United States is becoming a problem.”

In particular, the U.S. side is also said to have raised issues related to the police investigation of Kim Beom-seok, chair of the board of Coupang Inc. The police have requested the Ministry of Justice to be notified upon his entry so they can question him immediately if he arrives. If Kim enters the country, there is a possibility he could be arrested or detained. The U.S. side may have asked that, after being questioned, Kim be allowed to return home. However, the government’s stance is to proceed in accordance with domestic procedures. An official at the Ministry of Foreign Affairs said that day, “The investigation into Coupang will be handled in accordance with our domestic laws and due process.”

There are also observations that if South KoreaU.S. relations become strained over the Coupang issue, it could affect the two countries’ future security consultations. Based on the Joint Fact Sheet (joint explanatory document) from last November, South Korea and the United States are set to hold their first negotiations on securing South Korea’s rights to enrich uranium and reprocess spent nuclear fuel, as well as on introducing nuclear-powered submarines. While the U.S. focus on Iran’s nuclear issue is cited as the main reason for delays in South KoreaU.S. security consultations, the Coupang matter could also become an impediment going forward.

However, another government source said, “The Coupang issue is not becoming an obstacle to security consultations.” An official at the Ministry of Foreign Affairs stated, “The government will continue consultations with the U.S. side to ensure that issues related to Coupang do not negatively affect security discussions between South Korea and the United States,” adding, “In communications with the U.S. side, the government’s position is that security discussions should proceed separately from the Coupang matter.”

Bang Si-hyuk, chair of Hybe, appears at the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency in Mapo-gu on September 15 last year to be questioned over alleged violations of the Capital Markets Act (fraudulent unfair trading). Kwon Do-hyun

There is also controversy over the U.S. side requesting the police to lift the travel ban on Bang Si-hyuk, chair of Hybe’s board. Earlier, the U.S. Embassy in Seoul sent a letter to the acting Commissioner General of the National Police Agency asking that Bang’s travel ban be lifted so he can attend the July 4 event marking the 250th anniversary of U.S. independence. Bang is under suspicion of violating the Capital Markets Act by deceiving investors at the time of Hybe’s 2019 listing and pocketing profits of around 190 billion won. Critics say the United States is trying to interfere excessively in a domestic police investigation.

On the 21st, the police requested an arrest warrant for Bang from the prosecution. This is interpreted as the police drawing a line against the U.S. request. The Ministry of Foreign Affairs is also taking a cautious stance on Bang’s case. An official at the Ministry of Foreign Affairs said, “We will see how the police handle it,” adding, “We will not prejudge what kind of communication will take place between South Korea and the United States afterward.” This is interpreted as meaning it would be inappropriate for the diplomatic authorities to become involved in the progress of domestic judicial procedures.

From the government’s perspective, however, such actions by the United States could impose a diplomatic burden, as the U.S. places importance on the 250th anniversary of independence. The diplomatic authorities of South Korea and the United States have agreed to cooperate in hosting the commemorative events for the 250th anniversary of U.S. independence. At the second Public Diplomacy Dialogue held on the 1st, Im Sang-woo, the Ministry of Foreign Affairs’ Ambassador for Public Diplomacy, and Sra Rogers, the U.S. State Department’s Under Secretary for Public Diplomacy, signed a memorandum of cooperation containing these details.

A South KoreaU.S. relations expert said, “The United States is making an unreasonable demand,” adding, “If necessary, the police and others should at least lodge a protest with the U.S. side.”