Seoul: Science Minister Bae Kyung-hoon has expressed strong disapproval of U.S. e-commerce giant Coupang Inc. for its inadequate cooperation with the South Korean government's investigation into a significant data breach.
According to Yonhap News Agency, Coupang initially reported that the data breach affected over 33.7 million accounts. However, the company later revised this number to approximately 3,000 user accounts based on its internal investigation. Coupang claimed that this investigation was conducted with government oversight, but South Korean authorities have dismissed these claims as premature and unilateral.
Minister Bae criticized Coupang's statement that only 3,000 accounts were compromised and subsequently deleted, describing it as "reckless." He emphasized concerns that the data might still exist on cloud platforms, making it susceptible to cyberattacks. Bae also accused Coupang of violating legal obligations by allowing website access logs pertinent to the investigation to be deleted over five months.
Bae urged Coupang to provide a transparent disclosure of its investigation findings and compensation plans. He warned that any identified issues could lead to punitive measures against the company.
During a parliamentary session, Lee Jae-gul, a legal representative for Coupang, revealed that the company had been contacted by South Korea's spy agency, the National Intelligence Service (NIS), regarding the recovery of a laptop linked to the breach. The laptop was found in a river in China, and Coupang shared this information with the NIS.
Lee stated that Coupang's unilateral announcement about the breach was intended to counter false information circulating in South Korea and prevent further damage. However, this move has not appeased public anger.
Fair Trade Commission (FTC) Chairman Ju Biung-ghi indicated that the antitrust regulator is considering temporary suspension of Coupang's operations due to the data breach. The joint public-private investigation is assessing the extent of the leak and the potential damage, with the possibility of imposing penalties on Coupang.
Public dissatisfaction has been further fueled by Coupang's announcement of a compensation package valued at 1.69 trillion won (approximately US$1.17 billion). The package, offering 50,000 won per person in vouchers, has been criticized as a marketing ploy, as it requires users to make additional purchases.
Addressing concerns over the compensation program, Harold Rogers, interim CEO of Coupang Corp., clarified that the vouchers do not include conditions that would prevent users from seeking further legal compensation. Rogers assured that the compensation plan would not be used to mitigate potential future claims.