How a dispute over e-commerce firm Coupang is testing US-South Korea ties

A US$422 million fine imposed on South Korean e-commerce giant Coupang for a data breach has escalated into a diplomatic dispute between the United States and South Korea. The fine, levied by South Korean regulators, has drawn criticism from the US State Department, which stated that South Korea 'should not impose disproportionate burdens on US companies' such as Coupang. The incident is testing the strength of US-South Korea bilateral ties, highlighting tensions over regulatory actions affecting American firms operating abroad. The article, published by The Business Times on July 20, 2026, underscores the broader implications for trade and diplomatic relations between the two allies.