Coupang Faces Mounting Pressure as Data Breach Sparks Diplomatic Row

A severe multi-faceted crisis at South Korean e-commerce leader Coupang is now straining diplomatic ties between Seoul and Washington. The situation intensified on Monday as police confirmed a massive data leak impacting over 30 million user accounts. Concurrently, major U.S. investors have formally petitioned American trade authorities, alleging unfair treatment of the NYSE-listed firm by the South Korean government.

The corporate scandal has escalated into a significant trade policy issue. In late January 2026, investment firms Greenoaks Capital and Altimeter Capital, both substantial Coupang shareholders, filed a formal petition with the Office of the United States Trade Representative (USTR). Their filing contends that South Korea’s “aggressive campaign” against the company violates core trade principles. This action specifically targets the sweeping probe involving more than ten agencies, which is examining not only the data breach but also compliance with tax, labor, and safety regulations.

Reflecting the growing diplomatic tensions, U.S. Vice President JD Vance and South Korean Prime Minister Kim Min-seok established a direct hotline on January 24. This channel, aimed at preventing misunderstandings, underscores the high-level political importance now attached to the Coupang case.

Leadership Under Scrutiny Amid Police Probe

As diplomatic channels open, the legal pressure in Seoul continues to mount. Police disclosed on January 26 that personal information belonging to tens of millions of customers was exfiltrated between June and November 2025. This official assessment stands in stark contrast to the company’s own earlier, significantly lower internal estimates.

Should investors sell immediately? Or is it worth buying Coupang?

The ongoing investigation is placing intense scrutiny on current management. Following the resignation of CEO Park Dae-jun in December 2025, regulatory focus has shifted to the interim leadership. Reports indicate that interim manager Harold Rogers failed to comply with three separate police summonses in January. Authorities are now considering seeking an arrest warrant.

Share Price Decline and Impending Lawsuit Deadline

Sustained turmoil is weighing heavily on the company’s market valuation. By January 23, 2026, Coupang’s share price had fallen to $19.99, representing a decline of approximately 29% from its level in late November 2025, when it traded at $28.16.

Shareholders are also pursuing legal action in U.S. courts. Several law firms, including Bronstein, Gewirtz & Grossman and Hagens Berman, have filed class-action lawsuits on behalf of investors who acquired securities between May and December 2025. The allegations state that the company maintained inadequate cybersecurity controls and delayed reporting the breach to the SEC. The deadline for investors to apply as lead plaintiffs in these proceedings is February 17, 2026.