Cheong Wa Dae political affairs chief calls US congressional Coupang Inc report 'disappointing,' warns against making it a diplomatic issue

Cheong Wa Dae Senior Secretary for Political Affairs Hong Ik-pyo criticized a US congressional report that accused the South Korean government of discriminating against American companies in connection with Coupang Inc's massive personal data breach, calling it "one-sidedly reflective of Coupang Inc's position and highly inappropriate."

Hong made the remarks Monday on the Cheong Wa Dae new media press corps' YouTube channel. "It is deeply regrettable and disappointing that a legislature representing the will of the people has produced a report that is neither balanced nor consistent with the facts regarding the conduct of a specific company," he said. He added that because the document remains a preliminary rather than a final report, the presidential office had "strongly conveyed its position to the US congressional side."

Hong also took aim at how Coupang Inc has handled the matter. "It is highly inappropriate for a company to turn its own wrongdoing into a diplomatic issue by relying on the US Congress or government, rather than resolving it through legal means and at the level the public expects," he said. "A company that ignores the wishes and demands of consumers cannot survive." He went on to say that for Coupang Inc to win back public affection, "a sincere apology and genuine efforts to earn the trust of the people are needed."

Turning to the Homeplus crisis — the retailer faces bankruptcy after a court terminated its rehabilitation proceedings — Hong directed sharp criticism at majority shareholder MBK Partners, the private equity fund that controls the chain. "I cannot help but point out MBK Partners' immoral approach to mergers and acquisitions," he said, adding that the situation had exposed risks that emerged when private equity fund regulations were eased during the Lee Myung-bak administration. Expressing concern over large-scale job losses and widespread damage to suppliers, he urged financial authorities to actively improve the regulatory regime and take corrective measures.

Hong also addressed other current issues. On the prolonged protest at a Jamsil polling station triggered by a ballot shortage during the June 3 local elections, he said the demonstrations were "increasingly being led openly by a specific political group," but added that the government was carefully weighing solutions to prevent an unfortunate incident that could result from deploying public security forces. On the Democratic Party of Korea's push for a special prosecutor investigation into the ballot shortage through a "third-party recommendation" mechanism, Hong expressed support, saying the Democratic Party's proposal "is far more in line with the spirit of keeping politics out of it."

Meanwhile, asked about President Lee Jae Myung's condition following a golf invitation from US President Donald Trump, Hong said Lee was "under considerable stress over it these days." He said the presidential office had been advising Lee to "prepare little by little," given that Trump had extended the invitation personally and Lee would likely need to play if he visits. "He shouldn't play too well — he needs to play just well enough to put President Trump in a good mood," Hong added.