Koreans Dislike Successful American Tech Companies So Much, They’re Willing to Risk US-Korea Trade Deal |
The burgeoning U.S.-South Korea trade agreement is suddenly facing a breakdown due to a series of misguided actions by the Korean government, and the Trump Administration is on alert.
Why? President Lee Jae Myung and Korean lawmakers can't hide their disdain for American tech companies and the success they're having in Korea. Agencies across the Korean government system – tax authorities, financial regulators, intelligence services – even the local police – are increasingly attacking American firms that compete with Korean companies. It's sadly become a regular occurrence for political leaders and regulators in Seoul to harass and discriminate against successful U.S. firms that are capturing market share from entrenched conglomerates like Samsung, Hyundai, SK Group, LG, Lotte, and others. Now, it seems, President Lee and his anti-American government are willing to risk compromising the recently announced trade deal, and potentially even their relationship with President Trump, through their latest attempt to take down U.S. tech company Coupang.
Headquartered in Seattle, Coupang is a cornerstone example of the U.S.-Korea economic relationship. The company is the second-largest employer in Korea, and has been the largest source of U.S. foreign direct investment in Korea. Coupang works with over 10,000 U.S. brands to export billions of dollars in American goods to Korea, supports small and medium-sized American businesses, and facilitates the creation of thousands of U.S. jobs. In other words, a company that is enhancing U.S. trade and economic ties in a critical region for American security.
Despite these contributions, Korean lawmakers increasingly view Coupang's success – and other American tech leaders like Amazon, Google, Meta, and Netflix – as a threat to established domestic competitors. To "level the playing field," regulators at the Korea Fair Trade Commission (KFTC) and other Korean government agencies have implemented a steady stream of discriminatory policies specifically targeting U.S. firms, aimed at hindering their ability to do business.
For example, the KFTC recently ordered Coupang to stop showing customers how its food delivery prices are more favorable than those of the local market-dominant favored company, Baemin. Google Maps is currently not allowed to operate in Korea because there is a viable Korean competitor that wants to keep the market share.
Korean companies like Samsung and Hyundai enjoy support from policymakers in the U.S. and have made significant strides in the U.S. economy, and with U.S. consumers, which helped grow the domestic Korean economy. U.S. companies should receive the same treatment in Korea.
To enforce these policies, the