The Trump administration has warned South Korea to avoid targeting U.S. tech firms with excessive regulations and investigations, according to the Wall Street Journal. The warning came just days before President Trump announced a tariff hike on the country’s goods to 25% from 15% for failing to implement a trade agreement reached last July.
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Vice President JD Vance met with South Korean Prime Minister Kim Min-seok in Washington, D.C., last week and urged him to avoid restrictions on U.S. tech firms, including e-commerce company Coupang (CPNG). While Coupang is headquartered in the U.S., a majority of its revenue is derived from South Korea.
U.S. Urges South Korea to Ease Coupang Probe
Vance suggested to Kim that South Korea’s government should scale back its investigation into Coupang following a data breach. The investigation has led to the resignation of Coupang’s CEO and raids on the company’s offices.
As part of the trade agreement, South Korea pledged to avoid discriminating against American firms and promised to invest $350 billion in the country. Trump has yet to implement the tariff hike, implying room for negotiations between the two countries.