Seoul: The government on Wednesday announced its intention to pursue "all available legal measures" against Coupang Inc., following the company's inadequate response to a significant data leak. This announcement came during a parliamentary hearing where the U.S. e-commerce giant was criticized for its passive handling of the situation.
According to Yonhap News Agency, the government's joint statement with relevant agencies highlighted concerns over Coupang's attempts to downplay the damage and evade responsibility. Science Minister Bae Kyung-hoon, who leads the government's task force on the matter, criticized the company for not cooperating fully with the ongoing investigation.
Coupang reported that the data breach affected only 3,000 user accounts, contrary to initial reports of over 33.7 million. However, Bae emphasized that the company's claim was based merely on the suspect's testimony and warned that the leaked data could still pose a risk if stored on cloud platforms, potentially leading to cyberattacks.
The government further accused Coupang of allowing crucial website access logs to be deleted over a five-month period despite requests to preserve relevant data, which constitutes a legal violation. Bae stressed the need for Coupang to disclose fact-based investigation findings and compensation plans, warning of punitive measures if further issues are uncovered.
During the parliamentary session, Coupang's legal official, Lee Jae-gul, revealed that the company interacted with South Korea's spy agency while recovering a laptop linked to the leak. Despite not disclosing its investigation findings, Coupang made an announcement to counter false information circulating in South Korea.
The Fair Trade Commission (FTC) of South Korea is also considering temporary suspension of Coupang's operations due to the large-scale data breach. FTC Chairman Ju Biung-ghi stated that the ongoing investigation aims to assess the extent of the damage and Coupang's ability to compensate affected users. Public pressure is mounting for the government to suspend Coupang's operations.
Coupang's proposed compensation package of 1.69 trillion won (US$1.17 billion) has been criticized as a promotional stunt, with many users rejecting the 50,000 won vouchers that require further purchases. Interim CEO Harold Rogers assured that the vouchers have no conditions restricting further legal compensation.
Rogers also addressed the absence of Coupang's founder, Kim Bom-suk, from the parliamentary investigation, following a lawmaker's call for his attendance. The National Assembly, led by Rep. Choi Min-hee, vowed to take necessary actions in collaboration with the government, including a potential suspension of Coupang's operations.