More investors join legal challenge against South Korea over Coupang data leak handling


FILE PHOTO: Delivery trucks for e-commerce retailer Coupang leave a distribution centre in Seoul, South Korea, June 21, 2018. Picture taken June 21, 2018. REUTERS/Josh Smith/File Photo

Feb 11 (Reuters) - Three more investors ⁠have joined Greenoaks and Altimeter in their legal challenge against the government ⁠of South Korea, alleging discriminatory treatment of e-commerce firm Coupang and other ‌U.S. companies.

Abrams Capital, Durable Capital Partners, and Foxhaven have notified South Korea to pursue arbitration by adopting the previous suit filed by the other two investors, according to a statement published on Wednesday.

The legal claims ​accuse Seoul of mounting a campaign against Coupang following ⁠a consumer data breach that ⁠has caused billions of dollars in losses to investors.

Coupang reported in November that personal data ⁠for ‌some 33 million customers in South Korea were compromised, leading to far-reaching backlash from the public and lawmakers, lawsuits and international disputes.

The new investors ⁠have also submitted letters in support of petitioning the U.S. ​government to investigate South ‌Korea's actions.

"Over the past several weeks, it has become clear that both U.S. ⁠policymakers and U.S. ​investors recognize the importance of standing up for American companies in the face of discrimination by foreign countries," said Neil Mehta, founder and managing Partner of Greenoaks.

Coupang, founded by Korean-American ⁠Harvard graduate Bom Kim in 2010, is the country's ​most popular e-commerce platform. It has overtaken family-owned conglomerates like Shinsegae in South Korean e-commerce and is expanding into food delivery, streaming and fintech.

In a statement, South Korea's Justice ⁠Ministry said the government "will make every effort to respond in a systematic and professional manner to the additional notices of intent to arbitrate filed by Foxhaven and others, led by the International Investment Dispute Response Team."

The Coupang breach has also played a part ​in escalating trade frictions between the U.S. and South ⁠Korea, with U.S. President Donald Trump threatening to raise tariffs on the country to 25%.

The ​House Judiciary Committee last week issued a subpoena to ‌Coupang as a part of its ongoing ​probe into alleged discrimination against U.S. companies.

(Reporting by Zaheer Kachwala in Bengaluru; Additional reporting by Kyu-seok Shim in Seoul; Editing by Arun Koyyur and Ed Davies)

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