More than 50 House Republicans sent a stark warning to South Korea this week, accusing the country’s new left-wing government of systematically targeting American companies while shielding Chinese-backed competitors.
The letter, led by Rep. Darrell Issa (R-CA) and obtained by Fox News, was delivered to South Korean Ambassador Kyung-wha Kang. It lays out a direct charge: Seoul is “attacking” U.S. companies and has adopted regulatory policies that could cost American households nearly $4,000 each over the next decade.
“Many American tech companies have faced a range of regulatory actions that seek to punish them while shielding Korean domestic competition,” the letter states. “Recent research by think tank Competere shows such regulatory actions by the ROK government will cost $1 trillion in combined economic damage to the U.S. and Korean economies over the next 10 years, with the U.S. economy losing $525 billion.”
The letter specifically calls out treatment of Coupang, a South Korea-based e-commerce company founded by a Korean-American entrepreneur. Issa described it as “the Amazon of South Korea,” and said it has been “systematically attacked” by Korean regulators, likely because of its American roots.
“We are committed to ensuring that your government ceases its persecution of Coupang and other American companies operating in South Korea,” the letter reads. “The stakes for American economic and security interests are enormous.”
South Korea’s political landscape shifted sharply after conservative President Yoon Suk-yeol was impeached in December 2024 following his short-lived declaration of martial law. His successor, Lee Jae-myung of the Democratic Party, took office in 2025. Lee’s party now controls the National Assembly with a strong majority. The Democratic Party in South Korea favors closer engagement with North Korea and more progressive domestic policies, and critics say the new government has drifted toward Beijing.
The U.S.-South Korea Free Trade Agreement, known as KORUS FTA, has been in place since 2018. House members say that agreement gives the U.S. real leverage here. South Korean exports including Hyundai and Kia vehicles, Samsung products, and others enter the U.S. under favorable tariff rates. Issa said that benefit isn’t unconditional.
The U.S. maintains more than 25,000 troops on the Korean Peninsula. Issa referenced that presence as another element of the broader partnership at stake.
Beyond Coupang, the letter cites Meta as among the American companies facing discriminatory regulatory pressure in South Korea. Issa noted that Seoul has adopted European-style digital market rules, which he described as designed to localize competition and disadvantage the American firms that built their global footprints on merit.
The congressional letter stops short of demanding immediate action on tariffs or trade agreement modifications, but makes clear the relationship is being watched closely. The 50-plus signatories expect Seoul to correct course.
