Coupang (CPNG) traded lower on Tuesday as investors eyed potentially rising political and regulatory risks in both Korea and the U.S.
Harold Rogers, Coupang’s (CPNG) interim CEO, appeared before the US House Judiciary Committee for a closed-door deposition Monday.
Notably, the company is under scrutiny in Korea due to a large-scale data breach, and there is controversy over whether Korean authorities are treating the firm fairly. At the same time, U.S. lawmakers are paying close attention to how the investigation is being handled, framing it as a potential example of discrimination against an American tech company, which could put Coupang (CPNG) in the middle of a trade dispute.
Analysts warned that the combination of domestic investigation and international political tension threatens to create a difficult operating environment for South Korea-headquartered Coupang (CPNG) because the probe could lead to legal or financial penalties, as well as reputational damage in its key market. In the United States, any move toward using the case as leverage in trade discussions, including the possibility of new tariffs on Korean goods, could entangle Coupang in a broader geopolitical dispute.
Shares of Coupang (CPNG) were down 2.7% in mid-morning trading and are down more than 10% on a year-to-date basis.