Two American investors have filed a lawsuit against the South Korean government, alleging that it used illegal policies to harm Coupang. Let's explore the reasons behind their lawsuit and the extent of their losses on Coupang investments since the end of the third quarter.

Brad Gerstner, a prominent investor often focusing on tech stocks, has initiated arbitration proceedings against the South Korean government concerning its actions against e-commerce giant Coupang.

Gerstner leads Altimeter Capital Management, an investor in Coupang.

Another Coupang investor, Greenoaks, led by Neil Mehta, has also filed a lawsuit against the South Korean government, Axios reported on Thursday, the 22nd.

In addition to their lawsuits against the South Korean government, Greenoaks and Altimeter have also requested an investigation into the matter from the Office of the United States Trade Representative (USTR).

The core of the lawsuit is the claim that Coupang, while headquartered in Seattle, operates the majority of its business in South Korea, and has been discriminated against by the South Korean government.

The investors cited remarks from Prime Minister Kim Boo-kyum in their filing, particularly his statement that when investigating Coupang, "we must show the same strong will as when eradicating the mafia."

The Prime Minister's Office responded on the 23rd, stating that they had "never referred to a specific company or country, and this is an intentional distortion."

In a press release, the Prime Minister's Office explained that the remarks were made during a joint report to the Financial Services Commission and the Fair Trade Commission on December 19th of last year. They added that the intention was to "sternly correct long-standing unfair practices in the Korean economy and establish market order to create an economy that investors can trust."

The Prime Minister's Office emphasized, "Prime Minister Kim stated at the time, 'Do it by principle, don't worry about personnel, establish market order with the same resolve as when establishing market order by eradicating the mafia.' This was not intended to strongly penalize any specific company or companies belonging to a specific country, and Coupang was not mentioned at all in the actual remarks."

However, the US investment firms argue that the government imposed excessively harsh penalties on Coupang for a data breach incident in 2025, potentially creating an advantageous position for Chinese competitors.

Gerstner wrote in an X post, tagging Secretary of Commerce Howard Lutnick, "I don't believe the US administration and Congress would allow an American company to be unfairly bankrupted by a supposed ally, South Korea, simply because it favors its domestic companies. This would be a terrible precedent. 'America First' means ensuring a level playing field for our businesses."

Gerstner's remarks came in response to a post by Joe Lonsdale, a venture capitalist who founded several companies including Palantir Technologies and is a managing partner at the technology investment firm 8VC, sharing an Axios article.

"It's a massive mistake for the South Korean government to follow China's path of illegally harassing US companies to favor Chinese tech giants," Lonsdale commented on X.

Lonsdale added, "The South Korean president needs to decide whether it is more valuable to further the interests of the Chinese Communist Party by damaging trade relations with the US. Business with the US must be free and fair. We will not tolerate discrimination and harassment."

Greenoaks founder Mehta stated, "Trade agreements are only as strong as our willingness to uphold them," and that international competition "must be governed by rules, not the whims of politicians."

The two investors' protest has initiated a 90-day deliberation period for South Korea, during which the South Korean side can take its own remedial actions or attend hearings, Axios reported. Additionally, the letter sent to the USTR has started a 45-day statute of limitations, after which an investigation may proceed under U.S. trade law.

Altimeter Capital was known to hold 10,024,584 shares of Coupang as of the end of the third quarter. This holding was valued at $322,791,000 as of the end of the third quarter.

However, as Coupang's stock price has declined since the end of September, the current value of the stake is $199,088,238, a decrease of over $123 million.

Greenoaks held 15,377,927 shares as of the end of the third quarter, which were valued at $495,170,000 at the end of the third quarter, now amounting to $305,405,630. Greenoaks' stake has decreased by $189.76 million since the end of the third quarter.

Reuters reported on the 21st (local time) that South Korean President Lee Jae-myung stated the issue would be handled fairly.

Yeo Han-koo, South Korea's trade negotiator and head of the Ministry of Trade, Industry and Energy's trade negotiation headquarters, said that the government did not discriminate against Coupang. Yeo stated, "If a Korean company were to operate in the United States and cause a massive data leak there, the U.S. would naturally take the same action, and I have clearly explained this, and U.S. officials understand this."

By NNP Chief Reporter Hong Sung-koo / Special Correspondent NNP info@newsandpost.com