Seoul: The head of South Korea's Fair Trade Commission (FTC) stated that the antitrust regulator might consider halting Coupang Inc.'s business operations due to a recent significant consumer data breach affecting nearly 34 million users. FTC Chairman Ju Biung-ghi made these comments during a parliamentary hearing concerning the breach at the U.S.-listed e-commerce giant.

According to Yonhap News Agency, a joint public-private investigation is underway to determine the extent of the leaked information, the expected damage, and whether Coupang can adequately compensate the victims. Ju remarked, "If necessary, we can consider penalties up to and including a suspension of business operations."

The statement follows public outrage and increasing demands from the government to suspend Coupang's operations, highlighted by Rep. Hwang Jung-a of the ruling Democratic Party. Coupang had initially reported that over 33.7 million accounts were affected but later claimed the breach impacted only about 3,000 users. This assertion was made following Coupang's own investigation, which they claimed was conducted in close collaboration with the government. However, Seoul rejected Coupang's claims, describing them as a "unilateral" conclusion while the investigation continues.

Adding to public dissatisfaction, Coupang announced a 1.69 trillion-won (US$1.17 billion) compensation package for all users, which many have criticized as an attempt to exploit the incident as a promotional event. The compensation, amounting to 50,000 won per person, mainly consists of vouchers requiring subscriptions and additional purchases.

Further controversy arose over allegations that Coupang's compensation program aimed to prevent users from seeking additional legal compensation. However, Harold Rogers, interim CEO of Coupang Corp., denied these claims during the parliamentary hearing, stating, "There are no (such) conditions in those vouchers, and there will not be any conditions in those vouchers." Rogers also assured that the compensation plan would not be used to seek a reduction in potential damages if future claims are filed.