South Korea says Coupang dispute not holding up US trade and security agenda

Seoul: A top South Korean presidential official said on Wednesday ​that a dispute with U.S.-listed e-commerce firm ​Coupang was not delaying discussions with Washington on trade, investment or security, ​despite concerns the case had become a source of tension in the alliance.

National Security Adviser Wi Sung-lac said the Coupang matter involved a legally established data leak affecting more than 33 million records, rejecting the company's claim that the ‌incident only involved ⁠about ⁠3,000 records.

Read more: How a dispute over ecommerce firm Coupang is testing US-South Korea ties


"That fact has been established," Wi told a briefing. "Discussions should start from that point."

The dispute surrounding South Korea's investigation into a data leak at the Seattle-based Coupang has become a source of friction, with U.S. officials and business groups accusing Seoul of unfairly targeting the company.

Wi said a recent meeting involving South Korea's ambassador to the U.S. and senior government officials was convened to review a broad range of bilateral issues ​rather than the Coupang case alone.

"Coupang was discussed, of course," he ⁠said. "But we ‌agreed to prepare response measures by looking at various issues comprehensively and collectively."

While ​there are "various pending ​issues" between South Korea and the United States, "there are no signs that ⁠security consultations are being delayed because of them," Wi said.

He said ​discussions on South Korea's $350 billion investment pledge in the United States were continuing, ​although no immediate outcome had yet materialised.

Wi said investment remained the biggest single issue in the bilateral relationship.

On trade, Wi said South Korea believed Washington could impose additional tariffs under Section 301 of the U.S. Trade Act connected to forced labour.

"Our general understanding is that even if Section 301 measures are taken, they would not exceed the broader tariff rate being discussed between South Korea and ‌the United States," he said.

Washington last year lowered its tariff on South Korean imports to 15% from a threatened 25% after Seoul pledged the $350 billion investment package ​and $100 billion of ​energy purchases.

Seoul was continuing consultations ⁠with U.S. officials and providing relevant data and explanations, Wi said.

South Korean Industry Minister Kim Jung-kwan headed to Washington on Wednesday for talks with senior U.S. officials on trade and investment cooperation, his ministry said.

Read more: South Korea fines Coupang $409 million in country's largest data breach penalty

Wi also said Seoul was closely watching a U.S.-Saudi nuclear energy pact because it could have indirect implications for South Korea.

There were no obstacles to ongoing security discussions with Washington, including consultations on uranium enrichment and spent-fuel reprocessing, he said, adding the sides held talks in June and were preparing a second round of meetings.

"If necessary, we are also prepared to go to the United States for discussions," he said.