US State Department flags Korean regulatory enforcement as investment concern

The United States State Department's 2026 assessment of South Korea's investment climate identifies aggressive regulatory enforcement, including excessive audits and investigations of foreign companies, as a structural investment concern. The report also adds the risk that foreign executives who are American citizens can face restrictions on leaving the country when criminal liability is alleged.

Korean coverage linked the new wording to recent scrutiny of foreign-invested companies, including Coupang, though the report's language is broader than any single case. The assessment adds regulatory enforcement to the list of issues shaping United States-Korea investment discussions.