25% Tariff Shock: How the South Korean Government Misread U.S. Signals on Coupang

Rep. Na Kyung-won of the People Power Party lambasted Prime Minister Kim Min-seok, saying, “It’s deeply concerning to see the Prime Minister’s grasp of reality at this level. Is he mistaking the U.S. warning about sending a bill for a love letter?”

On February 10, Rep. Na took to social media to express her frustration: “If this is his approach, why did he even bother going to the U.S.?” She pointed out that despite Prime Minister Kim’s talk of establishing a hotline, he failed to pick up on Vice President Pence’s indirect criticism regarding Coupang, which led to an unexpected 25% tariff bombshell.

Rep. Na recalled her experience from last July during the Korea-U.S. Congressional Federation’s visit to Washington. She noted, “We witnessed firsthand the U.S. Congress’s sensitive reactions toward Coupang and other American platform companies.” She added that while they managed to clear up some misunderstandings in diplomatic settings, there was a consensus among lawmakers from both parties that a cautious approach to U.S. companies like Coupang was necessary, especially with looming tariff negotiations.

She further explained that despite this understanding, the Lee Jae-myung administration recklessly handled the Coupang situation by politically entangling it with union issues and prosecutor investigations, which ultimately led to negative consequences.

Rep. Na continued, “Then they were blindsided by a 25% tariff bomb. What’s the point of speculating about U.S. intentions now? Are they really interpreting the warning about sending a bill as a love letter? This shows a serious lack of diplomatic literacy.” She also suggested that the U.S. must be feeling both frustrated and perplexed by Korea’s response.

She concluded by urging, “It’s time to stop the photo-op diplomacy and the clueless approach. Engage in genuine communication. Ultimately, it’s the Korean people who suffer from the government’s distorted perception of reality.”