Coupang dispute threatens progress of Korea's $350 billion US investment plan
South Korea's high court denied Coupang's bid to halt a Fair Trade Commission probe, raising concerns for the pending $350 billion investment pact with the United States.
A Seoul High Court ruling on Wednesday denied Coupang's attempt to block a Fair Trade Commission on-site inspection into possible breaches of Korea's fair transaction act. Coupang argued the FTC failed to give prior notice, but the court allowed the probe to continue. FTC Chairman Ju Biung-ghi pledged to revise internal guidelines to close loopholes that let firms delay or avoid investigations, rejecting U.S. criticism of bias against American companies.
The case emerges amid intense negotiations on a $350 billion Korea-US investment agreement that promises major projects in shipbuilding, nuclear energy, Westinghouse, and Alaska LNG, alongside a $200 billion gas-fired power plant in Texas. Recent U.S. congressional actions have accused Korean authorities of discriminatory treatment of Coupang, while Seoul maintains its actions are purely domestic. Analysts warn the dispute could give Washington additional leverage to demand stronger protections for U.S. firms operating in Korea, potentially complicating the final stages of the investment framework.
Why it matters
The legal clash over Coupang may shape the regulatory climate that underpins a massive Korea-US investment deal.
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