U.S. to Launch ‘Section 301’ Investigation Beyond Coupang Into Korea’s Broader Trade Practices

The Office of the United States Trade Representative (USTR) has reportedly indicated that it will pursue a Section 301 investigation into South Korea’s unfair trade practices in the digital sector, arguing that the Korean government discriminates against U.S. technology companies.

Section 301 of the U.S. Trade Act allows the U.S. government to impose retaliatory measures—such as additional tariffs, import restrictions, or limits on services and investment—if foreign governments engage in unfair practices against American companies. Analysts expect the Trump administration’s pressure to remove what it considers non-tariff barriers affecting U.S. tech firms to intensify further.

Although the second Trump administration has already invoked Section 301 investigations against countries such as China and Brazil, this would be the first attempt to apply the measure to a core U.S. ally.

GreenOaks and Altimeter—U.S.-based institutional investors in Coupang—had earlier petitioned USTR to launch a Section 301 investigation, claiming the Korean government treated the company unfairly following the large-scale personal data leak incident that surfaced in January.

In a press release on the 9th, the investors said:

“Because USTR has indicated that it intends to hold the Korean government accountable and pursue broader Section 301 investigations, we have decided to withdraw our petition.”

Under U.S. law, USTR must decide within 45 days whether to launch an investigation after receiving a petition. The deadline passed on the 7th. Observers interpret USTR’s stance as shifting from a company-specific issue to a broader investigation into the competitive environment facing U.S. firms in Korea.

A diplomatic source said:

“USTR is internally coordinating the timing of an official announcement to launch the investigation.”

South Korea’s Minister of Trade, Industry and Energy Kim Jung-kwan and Trade Negotiations Chief Yeo Han-koo visited Washington, D.C. on the 6th and argued that opening a Section 301 investigation would be inappropriate, but the two sides reportedly failed to narrow their differences.

As a result, discussions may extend beyond the Coupang issue to several long-standing U.S. complaints about Korean non-tariff barriers, including:

• Korea’s proposed Online Platform Act

• Network usage fees imposed on services such as Netflix and YouTube

• Korea’s Cloud Security Assurance Program (CSAP) certification system

In Washington policy circles, there are also criticisms of Korea’s Fair Trade Commission investigative practices, including requests for voluntary document submission that allegedly produce similar effects to warrants.

USTR is expected to include these issues in its non-tariff barriers report, scheduled for release later this month and submission to Congress.

In its 2026 Trade Policy Agenda released on the 2nd, USTR stated it would focus on resolving structural trade barriers such as non-tariff measures, adding:

“We will use tools such as Section 301 to respond to unfair and discriminatory practices.”

USTR Representative Jamieson Greer recently launched Section 301 investigations into Brazil and China, and said investigations into excess supply issues in several Asian countries will also begin soon.

He also noted:

“We are examining foreign rice markets where massive subsidies are harming American rice farmers.”