South Korea Lawsuit: 3 More Investors Join Challenge Over Alleged Discrimination

February 12, 2026 Priya Shah – Business Editor Business

Abrams Capital, Durable Capital Partners, and Foxhaven have joined Greenoaks and Altimeter in a legal effort against the South Korean government, escalating a dispute over the treatment of U.S. Investments in the country. The move, announced on Wednesday, adds further weight to the arbitration claims filed under the U.S.-Korea Free Trade Agreement (KORUS), alleging discriminatory practices against U.S. Companies.

The legal challenge centers on the case of Coupang, a South Korean e-commerce firm, following a data breach. Investors allege that the South Korean government’s response, including escalating penalties, raids, and potential criminal prosecutions, has been disproportionate and unfairly targeted the company, resulting in significant losses for U.S. Shareholders. The investors contend that the regulatory actions constitute unlawful interference and violate commitments made under the KORUS agreement.

Greenoaks and Altimeter formally notified the South Korean government of their intent to pursue arbitration on January 22, 2026, and likewise requested that the U.S. Trade Representative launch an investigation into the matter. The addition of Abrams Capital, Durable Capital Partners, and Foxhaven signals a broadening of support for the legal action. The investors are seeking to uphold U.S. Trade commitments and ensure fair treatment for U.S. Companies operating in South Korea.

The case is considered unusual, as it involves venture capital firms directly suing a foreign government. The investors argue that the actions taken by South Korea have created an unpredictable and hostile regulatory environment, discouraging future investment. The arbitration claims seek remedies for the financial harm suffered by U.S. Shareholders as a result of the government’s actions.

As of Thursday, February 12, 2026, the South Korean government has not publicly responded to the latest developments in the legal challenge. The U.S. Trade Representative has also not announced whether it will initiate an investigation into the allegations.