로비할 땐 ‘미국 기업’ 쿠팡, 집단소송 법정선 ‘한국 플랫폼’ 이중잣대

A contentious chamber erupted over the issue of jurisdiction during the first round of pre-trial hearings for a massive American class action lawsuit against Korean e-commerce platform Coupang. Coupang had previously highlighted its US-based identity during lobbying efforts, but on this day in court, it argued that its Korean customers were not affected by the operations in the US, thus challenging jurisdiction.

According to a report by the Associated Press, on the afternoon of the second day, a pre-trial hearing in the Eastern District of New York federal court witnessed a clash between plaintiffs and defendants over whether the case should be heard in New York. Judge Ann Dooley repeatedly questioned both sides about the necessity of the case being heard in New York and why it was brought there instead of a Korean court.

The pre-trial hearing was an opportunity for the court to outline the key issues and outline the plan for the trial. The Korean legal firm representing Coupang's customers and the American law firm SJKP argued that Coupang had violated its obligations regarding personal data protection and care. The plaintiffs, including two Coupang customers residing in the jurisdiction of the Eastern District of New York and an estimated 7,800 affected individuals, had provided their names, contact information, and delivery addresses to the suit.

Coupang's legal representatives from the American firm Kendall & Ellis contended that the lawsuit against the US-based Coupang Inc., with its legal headquarters in Delaware, was improper due to jurisdictional issues. They argued that Coupang Inc., being a wholly-owned subsidiary of Korean Coupang, was not a separate legal entity and that pursuing litigation in Korea would be a waste of time and resources.

In contrast to Coupang's corporate lobbying in the US, which emphasized job creation and export growth, the court demanded a rejection of the case on jurisdictional grounds. The Korean customers argued that Coupang Inc. was a US-listed company and that the leadership of the parent company influenced decisions made by the Korean subsidiary.

They also pointed out that Coupang Inc. had reported the personal data breach to the Securities and Exchange Commission (SEC), which they claimed supported the jurisdictional argument. However, Judge Dooley demanded additional documentation by mid-June and will determine whether additional hearings are necessary before closing the case.

The US applies punitive damages, which could result in significantly larger legal liabilities for Coupang compared to the domestic market. However, if the court fails to address the jurisdictional issues, the trial may conclude without a verdict on whether Coupang breached its duty of care.