Seoul: E-commerce giant Coupang Inc. has unveiled a compensation plan valued at over 1.68 trillion won (approximately US$1.17 billion) following a significant personal data breach.

According to Yonhap News Agency, the announcement comes a day after Coupang's founder, Kim Bom-suk, issued a public apology for the incident, which impacted nearly two-thirds of South Korea's population.

The compensation plan involves offering 50,000 won in discounts and coupons to each of the 33.7 million affected customers, including both current and former users of the platform. Payments under this plan are set to commence on January 15. Harold Rogers, Coupang's interim CEO, stated that the company aims to become more customer-focused and trustworthy in response to this incident.

The compensation for each user includes allocations for various services: 5,000 won for e-commerce, 5,000 won for Coupang Eats, 20,000 won for travel products, and 20,000 won for R.LUX luxury beauty and fashion items. However, consumer rights groups have criticized the compensation plan, arguing that it trivializes the severity of the breach. The Korea National Council of Consumer Operations labeled the plan as a marketing tactic rather than genuine reparations, urging the government to conduct a thorough investigation.

Coupang recently identified a former employee as responsible for the breach, citing forensic evidence and a confession. The company claimed that data from only about 3,000 accounts was saved and later deleted. However, the government has dismissed these findings, emphasizing that a joint investigation is still ongoing.

The breach, confirmed on November 29, exposed the personal data of 33.7 million accounts, far exceeding initial reports of 4,500 affected accounts. The compromised data included names, phone numbers, email addresses, and delivery addresses.

In response, an interagency government task force, chaired by Science Minister Bae Kyung-hoon, has been formed to address the incident comprehensively. The task force includes officials from various ministries and agencies who are considering measures such as a business suspension for Coupang, depending on customer damages and compensation efforts.

The labor ministry also plans to investigate Coupang's labor conditions, especially regarding late-night and early-morning delivery operations. Minister Bae affirmed that the government will act collectively to resolve the situation and restore public confidence.