The basic conception of the argument (“Is [God] willing to prevent evil, but not able? then is he impotent. Is he able, but not willing? then is he malevolent. Is he both able and willing? whence then is evil?”) still seems valid if a God has created a karmic system.
So I don’t think this is an issue uniquely facing Western perspectives.
Personally, I don’t find the free will defence particularly convincing, either. Do we really have free will? Is free will truly necessary for education/moral goodness? And if so, is god truly capable of evil?