Abrams Capital, Durable Capital Partners, and Foxhaven Join Greenoaks and Altimeter in Legal Effort to End Korea’s Discrimination Against U.S. Companies and Uphold U.S.-Korea Trade Commitments
Abrams Capital, Durable Capital Partners, and Foxhaven Join Greenoaks and Altimeter in Legal Effort to End Korea’s Discrimination Against U.S. Companies and Uphold U.S.-Korea Trade Commitments
Leading investors join Greenoaks and Altimeter in filing a notice of intent to arbitrate under KORUS and submit letters in support of the previously-filed USTR petition
Mounting investor support echoes U.S. Government demands and trade warnings to Korea
SAN FRANCISCO--(BUSINESS WIRE)--Abrams Capital, Durable Capital Partners, and Foxhaven have joined Greenoaks and Altimeter’s (together, the “U.S. Investors”) legal challenge against the Government of the Republic of Korea (the “ROK Government”) to stop Korea’s discriminatory treatment against Coupang, Inc. (NYSE: CPNG) and other U.S. companies.
As previously announced, Greenoaks and Altimeter formally notified the ROK Government of their intent to file arbitration claims under the U.S.-Korea Free Trade Agreement (“KORUS”). They also petitioned the U.S. Trade Representative (“USTR”) to investigate the ROK Government’s conduct under Section 301 of the Trade Act of 1974. Abrams Capital, Durable Capital Partners, and Foxhaven have today formally notified the ROK Government of their intent to pursue arbitration by adopting in full the previously filed notice of intent under KORUS and have also submitted letters formally expressing their support for the previously filed USTR petition.
The U.S. Investors’ legal actions detail years of selective government enforcement, disproportionate regulatory scrutiny and false and defamatory claims targeting Coupang, a U.S.-founded and headquartered technology company, in violation of trade agreements and unlike anything faced by local and Chinese competitors operating in Korea. This treatment has resulted in billions of dollars of lost market capitalization borne by U.S. shareholders and threatens to cause additional losses if not remedied.
In addition to the U.S. Investors’ legal actions, the ROK Government’s conduct has triggered U.S. congressional hearings, warnings from senior U.S. administration and congressional leaders to Korea, threatened tariff increases if Korea fails to uphold its trade agreements, and a House Judiciary Committee investigation.
“Over the past several weeks, it has become clear that both U.S. policymakers and U.S. investors recognize the importance of standing up for American companies in the face of discrimination by foreign countries,” said Neil Mehta, Founder and Managing Partner of Greenoaks. “We are pleased to have Abrams Capital, Durable Capital Partners, and Foxhaven join us in demanding that President Lee’s administration honor its free trade commitments with the United States and end its administrative assault on Coupang without delay.”
ABOUT GREENOAKS
Greenoaks is a concentrated, long-term partner to extraordinary founders building generational businesses.
ABOUT ALTIMETER
Altimeter is a technology-focused investment firm that invests across public and private markets.
ABOUT ABRAMS CAPITAL
Abrams Capital is a Boston-based investment firm founded in 1999.
ABOUT DURABLE CAPITAL PARTNERS
Durable Capital Partners is an investment firm that invests across private and public markets with a long-term horizon, applying deep knowledge of compounder patterns to support leaders building durable and sustainable businesses.
ABOUT FOXHAVEN
Foxhaven is an investment firm that takes a long-term strategic approach to assessing the fundamental value of companies.
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