ISDS with low odds of winning... The target is Super 301 trillion won?

[Anchor]

Two American companies that are major shareholders of Coupang announced that they would initiate international investment dispute and ISDS arbitration procedures against the Korean government.

They claimed that after the Coupang incident, Coupang received discriminatory treatment from the Korean government and that American investors suffered losses.

At the same time, the U.S. government also requested an investigation into Korea.

Reporter Jaewoo Jeong reports.

[Report]

Coupang investment companies Greenox and Altimeter claimed that they received unfair and discriminatory treatment in the letter of intent to arbitrate submitted to the Korean government.

It was written that the Korean government targeted Coupang to protect existing large corporations. Coupang, an American company, was punished harshly, while Korean and Chinese companies were lightly punished.

Because of this, stock prices fell and American investors suffered losses, which was cited as the reason for filing the dispute.

On the New York Exchange on the 22nd local time, the stock price of Coupang headquarters fell by nearly 30% compared to before the information leak.

However, analysis suggests that Coupang is unlikely to win the dispute based solely on the decline in stock prices.

This is because it is not easy to prove both that government regulations are unfair and that the reason for the decline in stock prices is the regulations.

[Lee Tae-ho/Former Vice Minister of Foreign Affairs/Advisor, Law Firm Gwangjang: “The general trend is to recognize the state’s legitimate regulatory authority quite broadly….”]

A more powerful target is the US government's trade remedy investigation.

On the same day, Coupang investors petitioned the U.S. Trade Representative to investigate the Korean government based on Article 301 of the Trade Act, and directly requested measures such as imposing retaliatory tariffs.

Considering our sensitive situation regarding tariffs and the Trump administration's tendency to use tariffs as a weapon, it is a burden that cannot be ignored.

The Office of the U.S. Trade Representative must decide whether to initiate an investigation within 45 days of receipt, but the key is to persuade the U.S. government not to initiate an investigation.

[Son Dong-hoo/American lawyer/law firm SJKP: "Considering the Trump administration's protectionist tendencies and America-first stance, the scenario in which an investigation will lead to actual retaliatory measures is quite realistic..."]

Prime Minister Kim Min-seok, who is visiting the United States, met with federal representatives and explained that there is no discrimination against Coupang at all.

This is Jeong Jae-woo from KBS News.

Cinematographer: Ji Seon-ho/Video Editing: Yoo Ji-young/Graphics: Kim Ji-hoon
 

Jaewoo Jeong (jjw@kbs.co.kr)

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