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Blue House stresses Coupang data breach is not Korea-U.S. trade, diplomatic issue

Published: 19 Jan. 2026, 19:06 Updated: 20 Jan. 2026, 08:36

The Coupang headquarters is seen in southern Seoul on Dec. 9, 2025. [KIM JONG-HO]

The Blue House on Sunday sought to contain the fallout from the Coupang data breach by stressing that the incident should not be treated as a Korea-U.S. trade or diplomatic issue, marking a clear shift from its earlier hard-line response that had drawn attention from Washington.

The Coupang data breach refers to a large-scale leak of personal information that affected 33.7 million users and was first revealed in December 2025. The case prompted investigations by Korean authorities and became a subject of diplomatic discussion due to the company’s ties to the United States. E-commerce company Coupang's headquarters is registered in Delaware and is listed on the New York Stock Exchange.

“The Coupang case involves a personal information leakage of unprecedented scale, and relevant agencies are conducting investigations in accordance with the law,” the Blue House said in a statement distributed to the press on Sunday. “It is not appropriate to interpret this as a Korea-U.S. diplomatic or trade issue, and we will continue to explain this position to the U.S. side.”

The move appeared intended to prevent the controversy from escalating into a cross-border issue and to counter growing speculation that Seoul was taking a more aggressive stance toward Washington.

The Blue House is seen in central Seoul on Dec. 21, 2025. [NEWS1]

The clarification marked a sharp contrast to the Lee Jae Myung administration's posture a month earlier.

On Dec. 25 last year, the Blue House convened an emergency ministerial meeting on the Coupang case.

The meeting included not only officials from agencies directly tied to data protection — such as the Ministry of Science and ICT, the Korea Fair Trade Commission, the Personal Information Protection Commission and the Korea Media and Communications Commission — but also representatives from the Ministry of Foreign Affairs, the Ministry of Trade, Industry and Resources and the National Intelligence Service.

The wide range of attendees signaled that the government was treating the incident as more than a data protection issue, potentially framing it as part of a broader economic security agenda.

Some officials at the time expressed concern that the Foreign Ministry's participation in the meeting could send the wrong signal.

“When the situation has not yet escalated into a diplomatic issue, the Foreign Ministry’s participation could give the impression that the government is treating it as one,” a Democratic Party (DP) official said.

In the end, Second Vice Foreign Minister Kim Jin-a attended the meeting in place of Foreign Minister Cho Hyun.

The Foreign Ministry also issued its own statement on Dec. 26, 2025.

“This case involves responding to security issues and protecting consumers following a personal data breach,” the ministry said. “It is not something that should escalate into a trade issue.”

A Coupang logo is seen in this photo taken on Feb. 11, 2025. [REUTERS/YONHAP]

Despite that caution, Foreign Ministry officials continued to take part in follow-up meetings, including a governmentwide task force meeting chaired by Science Minister Bae Kyung-hoon a few days later on Dec. 29, as well as National Assembly hearings on Dec. 30 and 31. Officials from the Ministry of Trade, Industry and Resources, on the other hand, did not attend those sessions.

Some observers noted it was unusual for the Foreign Ministry to take the lead while the ministry responsible for trade policy remained absent. Others said the Foreign Ministry was put in a difficult position as it sought to prevent the issue from being interpreted as a diplomatic or trade dispute.

The Blue House’s effort to frame the incident as a domestic data breach came in response to growing pressure from Washington.

During his trip to the United States from Jan. 11 to Wednesday, Trade Minister Yeo Han-koo met with U.S. Trade Representative Jamieson Greer, who questioned on Jan. 13 whether the Korean government was effectively trying to bankrupt Coupang and reportedly used the word “bullying” to describe what he viewed as excessive regulatory pressure.

Trade Minister Yeo Han-koo, right, shakes hands with U.S. Trade Representative Jamieson Greer at the United States Trade Representative building in Washington on Jan. 13. [NEWS1]

The U.S. Department of State already signaled its concerns in a broader context by releasing its Agency Strategic Plan for fiscal years 2026 to 2030 on Thursday.

The document warned that “foreign governments and international organizations are creating laws and regulations that impose restrictions” on the rights of free speech, religion and conscience.

“We will counter these efforts through all appropriate means, including visa and financial sanctions,” the document read.

The State Department’s position reflected growing sentiment in U.S. political and business circles that Korea’s digital and platform regulations, including the network act revision backed by the DP and the online platform act proposed by the Fair Trade Commission, unfairly target U.S. companies.

The network act revision and the proposed online platform act have drawn criticism from U.S. officials and companies for imposing stricter obligations on platform operators, such as transparency in algorithms and fair contract terms with vendors, which they argue unfairly target U.S. tech firms.

Some observers warned that if the narrative solidifies that the Lee administration and National Assembly are targeting U.S. companies, the case could quickly escalate into a diplomatic dispute.

“In cases like Coupang’s, which are closely tied to U.S. political and business circles, it’s important to manage the message carefully to prevent unnecessary misunderstandings with the Trump administration,” a diplomatic source said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY YOON JI-WON [[email protected]]