U.S. investors sue South Korea over Coupang "discrimination"
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Silicon Valley investment firms Greenoaks and Altimeter on Thursday filed arbitration claims against South Korea's government, arguing that it has acted unlawfully toward e-commerce giant Coupang.
- They also asked the U.S. Trade Representative to investigate.
Why it matters: It's highly unusual for U.S. venture capitalists to sue foreign governments, and their move could drive a wedge between Washington and Seoul.
- Altimeter founder Brad Gerstner led the initiative that became Trump accounts, and former acting White House chief of staff Mick Mulvaney this week wrote an op-ed about how South Korea is "targeting" Coupang.
Driving the news: The trade dispute alleges that South Korea is violating the U.S.-Korea Free Trade Agreement (KORUS) by discriminating against Coupang — a Seattle-based company that does most of its business in South Korea.
- Much of this stems from the South Korean government's response to a 2025 data breach, which the VC firms argue was overstated and over-penalized for the sake of boosting domestic and Chinese competitors to Coupang.
- For example, the complaint notes how South Korea's Prime Minister Kim Min-seok said publicly that law enforcement should go after Coupang "with the same determination used to wipe out mafias."
By the numbers: Coupang shares are down 9% over the past year, giving it around a $37 billion market cap.
- Greenoaks holds over $1.1 billion of Coupang stock, and argues that South Korea's actions have cost it hundreds of millions of dollars.
- Altimeter's position is significantly smaller, valued at around $210 million.
What they're saying: "Trade agreements are only as strong as our willingness to stand up for them, and we are acting today to ensure that international competition is governed by rules, not the whims of politicians," says Greenoaks founder and managing partner Neil Mehta, who had planned to go it alone before Altimeter signed on.
- Mehta also is on the board of Coupang, but says that he brought the case independent of the company.
Look ahead: The notice letter to South Korea begins a 90-day "cooling off" period, during which the government either can "engage in self-correction" or proceed to a KORUS arbitration hearing, says Marney Cheek, a partner with law firm Covington who represents Greenoaks.
- The letter to USTR begins a 45-day clock under which it can consider launching an investigation under Section 301 of the U.S. Trade Act.
- It's also possible that other Coupang investors will join the action.
