Three More Coupang Shareholders File ISDS Notices of Intent Against South Korean Government

[Financial News] U.S. investment firms that hold shares in Coupang have filed a notice of intent to initiate Investor–State Dispute Settlement (ISDS) proceedings against the Government of South Korea under the United States–Korea Free Trade Agreement (KORUS FTA). Three additional investors have now joined the prospective claim, bringing the total number of Coupang-related investors that have submitted ISDS notices of intent against the South Korean government to five.
According to the Ministry of Justice on the 12th, Coupang shareholders Foxhaven Capital (Foxhaven Capital GP, LLC), Durable Capital Associates (Durable Capital Associates LLC), Abrams Capital (Abrams Capital, LLC) and their respective affiliates submitted additional ISDS notices of intent to the South Korean government the previous day (local time).
Previously, U.S. investment firms Greenoaks Capital (Greenoaks Capital Partners LLC) and Altimeter Capital (Altimeter Capital Management LP), which also hold stakes in Coupang, filed their own notices of intent with the government on the 22nd of last month.
A notice of intent is a written document by which a claimant informs the respondent state that it plans to commence arbitration. It does not in itself constitute a formal request for arbitration, and a claim can only be formally filed 90 days after the notice of intent has been submitted.
In their notices, the investment firms and their affiliates reportedly argued that, following Coupang’s personal data leak incident in December last year, the National Assembly and the executive branch targeted the company with sweeping fact-finding investigations, various administrative sanctions, and threatening public statements.
They further contended that the South Korean government violated its obligations under the KORUS FTA, including the duties to provide fair and equitable treatment, national treatment, most-favored-nation treatment, comprehensive protection, and protection against expropriation. The notices are also said to claim that these alleged breaches caused damages amounting to several billion dollars.
The Ministry of Justice stated, "The additional claimants have adopted the contents of the notice first filed by Greenoaks and others without change," adding, "As with the previously received notice of intent, we will ensure a systematic and expert response led by the International Investment Dispute Response Team."

kyu0705@fnnews.com Kim Dong-gyu Reporter