The South‑Korean e‑commerce titan, listed on the New York Stock Exchange under the ticker CPNG, is now caught in a web of lawsuits, data‑breach scrutiny, and escalating U.S. trade pressure. Despite a record‑breaking transaction volume, the company’s stock has slipped sharply, reflecting investor dread and a mounting regulatory burden.

1. A Data‑Breach Catastrophe Unleashed

Police investigations have revealed that a security lapse exposed more than 30 million user accounts. The company’s own statements, which downplayed the breach’s scale, are now being called into question. In a separate lawsuit filed on December 18 2025, plaintiffs claim that Coupang withheld critical breach information, arguing that the firm’s silence violated consumer protection laws. The lawsuit has already prompted a $900 million fine and a dramatic downgrade of the company’s 2026 earnings‑per‑share forecast by Nomura. Amid the legal chaos, interim CEO Harold Rogers faces police questioning after previously defying summons, a development that threatens to further erode stakeholder confidence.

2. Trade Tension Turns Into Tariff Threat

The U.S. administration has escalated its trade stance, threatening a 25 % tariff on Korean goods if Seoul fails to implement a recently signed trade deal. Senior Republicans have linked the tariff hike directly to Coupang’s regulatory disputes, portraying it as retaliation for Seoul’s handling of the e‑commerce giant. Vice President JD Vance publicly warned that South Korea should avoid penalizing U.S. tech firms, a statement that temporarily lifted the stock’s price but underscored the fragility of the firm’s international standing. The Trump administration’s tariff threat is not merely a political maneuver; it carries a concrete risk of inflating the cost of Korean exports, including the very goods that fuel Coupang’s supply chain.

3. Labor Law Backlash and Financial Strain

A raid on the Labor Ministry by special prosecutors revealed that Coupang allegedly failed to pay severance to a large cohort of workers. The company reported a staggering 66 trillion won in estimated payments last year—a figure that underscores the scale of its labor obligations. Yet the investigations suggest systemic compliance failures, further straining the company’s resources and public image.

4. Market Reaction: A Sharp Decline Amid Record Volume

Despite these controversies, Coupang’s transaction volume reached an all‑time high, a testament to the resilience of its consumer base. However, the stock price—closing at $19.57 on January 25, 2026—has slid from its 52‑week high of $34.07 to near the low of $19.02. With a market cap of $36.5 billion and a staggering P/E ratio of 95.67, the stock is heavily overvalued relative to earnings expectations, and the recent regulatory and legal headwinds are likely to amplify volatility.

5. The Bottom Line for Investors

Coupang’s situation is emblematic of a broader risk facing U.S.‑listed companies operating in highly regulated markets: regulatory uncertainty, legal exposure, and geopolitical tension can quickly erode market confidence. The company’s recent fine, the pending police inquiries into its leadership, and the looming tariff threat create a perfect storm that could depress earnings and drive a further decline in share price.

Investors must weigh the company’s robust transaction volume against the mounting legal and trade risks. Unless Coupang can swiftly resolve its data‑breach disclosures, satisfy labor obligations, and demonstrate compliance with U.S. trade expectations, the firm’s valuation remains precariously high and its future trajectory uncertain.