South Korea faces increased US investor legal action over Coupang breach probe

South Korea's Ministry of Justice has announced that U.S. investment firms Foxhaven Asset Management, Abrams Capital, and Durable Capital Partners have joined a lawsuit alleging the South Korean government's lack of impartiality in handling its investigation into the massive data breach at leading South Korean e-commerce firm Coupang, according to TechCrunch.

The investment firms, which joined an earlier filing by fellow U.S. investors Altimeter and Greenoaks, are seeking international arbitration under the U.S.-Korea Free Trade Agreement, arguing that South Korean authorities acted unlawfully and unfairly toward the company following the breach. They claim the government overstated the breach's impact and imposed exceptional pressure, including the threat of heavy fines and operational restrictions. The ministry is reviewing the filing, which begins a mandatory 90-day consultation period before formal arbitration may proceed.

Coupang revealed in December that personal information linked to nearly 34 million customers in South Korea had been exposed during a cyber incident that lasted more than five months. The data included names, shipping addresses, and contact details, but not payment information or passwords, noted Coupang.