Coupang data breach escalates into trade dispute between US and South Korea
SEOUL, South Korea — U.S.-listed e-commerce giant Coupang confirmed a new data breach affecting 165,000 users, an incident a South Korean official says has strained the country’s alliance with the United States.
The latest leak exposed customer names, phone numbers, and addresses. Coupang stated that the breach did not include payment details or account login information.
This security failure follows a massive 2025 incident that compromised the data of more than 33 million customers—roughly two-thirds of South Korea’s population. The initial breach sparked police and regulatory investigations as well as several lawsuits against the company.
South Korean National Security Advisor Wi Sung-lac said the issues surrounding Coupang are "related" to U.S. President Donald Trump’s decision to increase tariffs on South Korean goods to 25%.
Washington has also expressed concerns that Seoul’s tightening regulations on digital platform operators could negatively impact American companies.
Saigon Sentinel Analysis
The Coupang data scandal has transcended the boundaries of a corporate cybersecurity failure to become a high-stakes flashpoint in U.S.-South Korea diplomatic and trade relations. The fact that a senior national security official in Seoul has explicitly linked the incident to President Trump’s tariff escalations underscores the gravity of the situation. For the Trump administration, the Coupang case appears to be functioning as strategic leverage, aligning with a broader "America First" pattern of utilizing regulatory and trade disputes to advance geopolitical objectives.
The South Korean government currently faces a profound policy dilemma. Domestically, the administration is under intense political and public pressure to impose stringent sanctions on Coupang following a breach that compromised the personal data of a significant portion of the population. However, any enforcement action perceived as overly aggressive risks being characterized by Washington as discriminatory targeting of a U.S.-listed entity. Such a designation could provide the necessary pretext for broader retaliatory trade measures.
This standoff serves as a stark illustration of how technology, data governance, and cybersecurity are now central to global economic statecraft. It presents a fundamental challenge for U.S. allies attempting to balance the enforcement of domestic legal sovereignty with the need to maintain stable economic ties with an increasingly unpredictable partner.