South Korea’s relationship with its global partners, the European Union and the United States, has been thrust into the spotlight following a flurry of diplomatic meetings, economic turbulence, and a high-profile data breach scandal involving the e-commerce giant Coupang. The events of late January 2026 have underscored both the opportunities and the challenges facing Seoul as it navigates shifting geopolitical currents and the demands of international business.
On January 22, 2026, the second South Korea-European Union Strategic Dialogue took place in Brussels, marking another milestone in the deepening ties between Seoul and the EU. According to Yonhap News Agency, the meeting brought together South Korean Foreign Minister Cho Hyun and Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy. The two sides engaged in wide-ranging discussions, touching on the geopolitical landscape of the Korean Peninsula, Northeast Asia, the Middle East, and the ongoing war in Ukraine.
Both parties agreed that the stakes have rarely been higher. With tensions simmering in multiple regions and the Ukraine war continuing to roil international order, the dialogue focused on how to strengthen cooperation in security, defense, economy, and trade. As Yonhap reported, the two sides “agreed to continue high-level exchanges, including organizing a bilateral summit.” This commitment to ongoing dialogue signals a shared recognition of the need for robust partnership in an increasingly unpredictable world.
The South Korea-EU Strategic Dialogue, inaugurated in 2023, first convened in November 2024 in Seoul. Since then, it has become an important channel for addressing not only bilateral concerns but also global challenges. The Brussels meeting reflected the evolving nature of this partnership, with both sides keen to coordinate their responses to security threats and economic uncertainties.
Yet, even as South Korea deepens its diplomatic ties abroad, it faces mounting pressures at home. As reported by L’Opinion on January 22, 2026, South Korea experienced a sharp contraction in economic growth at the end of 2025. This unexpected downturn was driven by a drop in both domestic demand and exports—two pillars of the nation’s economic engine. Despite the setback, South Korea managed to eke out overall growth of 1% for the year. Still, the abrupt slowdown has raised eyebrows among policymakers and investors alike, especially after a promising third quarter.
Economic headwinds have not gone unnoticed by Seoul’s leaders. The government faces the delicate task of balancing domestic priorities with the demands of international partners. The contraction has also injected a note of caution into ongoing discussions with the EU, where economic cooperation and trade are central themes.
Amid these economic challenges, a separate controversy has erupted that threatens to complicate South Korea’s relations with the United States. On January 23, 2026, South Korean Prime Minister Kim Min-seok addressed American lawmakers during his visit to the U.S., firmly denying allegations that Seoul discriminates against Coupang, the e-commerce company listed on the New York Stock Exchange. According to Reuters, Kim responded to concerns raised by two major U.S. investors—Greenoaks and Altimeter—who have accused South Korea of unfair treatment following a massive data breach at Coupang.
The breach, disclosed by Coupang in November 2025, compromised the personal data of approximately 33 million South Korean customers. The incident triggered a wave of investigations and lawsuits from investors and consumers, as well as a public outcry. Greenoaks and Altimeter, both significant stakeholders in Coupang, claimed that the South Korean government’s response amounted to a “campaign against Coupang” and resulted in billions of dollars in losses for investors. They have since called on the U.S. government to investigate and potentially impose corrective trade measures, and have filed for arbitration under the U.S.-Korea Free Trade Agreement (KORUS).
Prime Minister Kim, however, was unequivocal in his response. “There is absolutely no discrimination against Coupang. The relationship between the United States and Korea is based on trust, so there is no need to worry about discriminatory treatment,” Kim stated, as reported by Reuters. He drew a parallel to a recent U.S. immigration raid in Georgia that resulted in the arrest of hundreds of Korean workers, emphasizing that Seoul did not view that incident as discriminatory. “Similarly, the action against Coupang is not because it is an American company,” he added.
The South Korean Ministry of Justice has also weighed in, pledging to “carefully examine the legal issues” raised by Coupang’s notification letter and to “respond actively” as the situation develops. For its part, Coupang has distanced itself from the legal dispute, stating that it “is not involved in the legal dispute and is cooperating with the government investigation.”
This episode has cast a spotlight on the complex interplay between data privacy, corporate governance, and international investment. With consumer data breaches becoming an all-too-common occurrence worldwide, the Coupang case has become a flashpoint for broader debates about regulatory oversight and the rights of foreign investors in South Korea.
Against this backdrop, South Korea’s diplomatic efforts take on added significance. The country’s leadership is striving to reassure both domestic and international audiences that it remains committed to transparency, the rule of law, and open markets. The ongoing dialogue with the EU and the careful handling of the Coupang dispute are both part of a larger strategy to maintain investor confidence and safeguard Seoul’s reputation as a reliable economic partner.
Looking ahead, the promise of a future South Korea-EU summit and continued high-level exchanges suggest that Seoul is determined to stay engaged on the world stage. At the same time, the government’s response to the economic slowdown and the Coupang controversy will be closely watched by allies and investors alike. The coming months will likely test South Korea’s ability to balance competing demands—economic, diplomatic, and regulatory—in a rapidly changing global environment.
For now, South Korea’s leaders are betting that dialogue, transparency, and cooperation will see them through this turbulent period, even as new challenges and opportunities continue to emerge.