Over 50 US House Members Raise Concerns of South Korean Government Favoring China

More than 50 members of the US House of Representatives have raised suspicions that the South Korean government's policies are unfavorable to American companies and advantageous to Chinese firms. In a letter sent to Ambassador Cho Kyo-hong of the Korean Embassy in the US, Representative Young Kim stated that the South Korean government's policies are "discriminatory," alleging that domestic competitors are being protected while American companies are subjected to regulatory measures. The lawmakers urged in their letter, "We call on your government to cease the persecution of Coupang and other American companies operating in Korea."

According to a recent study by the US think tank Compete Better, such regulatory actions by the South Korean government could lead to a total economic loss of $1 trillion for the US and South Korean economies over the next decade, with the US economy expected to lose $525 billion and US households approximately $4,000.

In the 2025 presidential election, the Democratic Party, led by Lee Jae-myung, became the majority party. This marks the first time in four years that the Democratic Party has formed a comprehensive majority government in South Korea. The Democratic Party tends to favor progressive domestic policies, unlike the conservative beliefs of the previous administration.