South Korea, US Agree to 'Stably' Manage Coupang Issue: Envoy

By Song Sang-ho and Baek Na-ri

WASHINGTON, July 8 (Yonhap) -- South Korea and the United States share the understanding that they should "stably" manage a thorny issue involving U.S.-listed e-commerce giant Coupang Inc. in a way that does not "burden" bilateral relations, Seoul's top envoy to Washington said Wednesday.

Ambassador Kang Kyung-wha made the remarks at a press briefing, after a House Judiciary Committee report and a White House official recently criticized South Korea's regulatory probes into Coupang's massive data leak in the Asian country as "discriminatory."

"There has been a shared understanding between the two governments that (Seoul and Washington) should stably manage (the Coupang issue) so that it would not burden the South Korea-U.S. (relations)," she said.

"We will consistently explain our government's position through continued consultations with the U.S. side," she added.

Last week, the House Judiciary Committee issued an interim staff report accusing the South Korean government of "discriminatory attacks" on Coupang and other American-owned businesses, claiming that Coupang has been its "consistent target."

Following the committee report, a White House official said Coupang is being "singled out" by South Korean President Lee Jae Myung's administration, expressing concern over what he called "discriminatory" targeting of the company.

Seoul's foreign ministry has expressed regret over the committee report, saying it appears to reflect Coupang's claims in a "one-sided" manner and fails to include Seoul's position and the "factual information" it has offered to the committee.

Commenting on U.S. trade investigations under Section 301 of the 1974 Trade Act that would result in new tariffs on South Korea and other countries, Kang said that her embassy will continue close consultations with the U.S. to minimize any potential negative impact from the investigations.

"(Seoul) has stressed the importance of maintaining a balance of interests between the two nations, and the U.S. side has also expressed its willingness toward that end."

The Office of the U.S. Trade Representative has conducted Section 301 trade investigations into 60 countries, including South Korea, China and Japan, over forced labor concerns, and proposed 12.5 percent tariffs on South Korea and dozens of other economies.

It has also been carrying out Section 301 trade investigations into South Korea, China, Japan and 13 other economies to uncover "unfair" trade practices related to "structural" excess capacity and production.

Section 301 is a provision that allows the USTR to investigate unfair foreign trade practices on a country-by-country basis. The investigations were launched in March as the administration is pushing to replace the invalidated country-specific "reciprocal" tariffs struck down by the Supreme Court in February.