Coupang
(CPNG), South Korea’s foremost digital shopping platform, is
confronting the prospect of a potentially record-breaking penalty,
possibly reaching up to KRW1 trillion ($770mn), following the
nation’s most extensive personal data compromise, Chosun
Daily reports. The breach affected 33.7mn users, with
confirmed exposed details including customer names, email
addresses, physical addresses alongside phone numbers from delivery
address books, and certain order information. Coupang confirmed the
account breach on November 30.
This
event is hugely significant as it threatens the financial health
and consumer trust of the country's leading e-commerce firm, an
important barometer for South Korea’s digital economy and
commitment to data protection standards. The South Korean
government underscored the gravity of the matter by convening an
extraordinary ministerial summit on November 30, a public holiday, to address
the extensive security failure.
The
Personal Information Protection Commission (PIPC) commenced an
inquiry on the following day to ascertain if Coupang neglected
obligatory security measures like access control and data
encryption. Under current legislation, penalties can reach 3% of
the relevant turnover. Given Coupang’s estimated domestic revenue
of KRW31.226 trillion for the first three quarters, the maximum
fine could indeed approach the KRW1 trillion mark. This calculation
may increase if integrated services revenue, such as Coupang Play
and Coupang Eats (accessible via the ‘Wow’ membership), is
included.
This
anticipated fine is substantially steeper than the previous record,
a KRW134.8bn fine against SK Telecom for a smaller breach involving
23.24mn customers. Coupang has a history of smaller internal data
leaks, yet the combined administrative sanctions for three past
incidents between August 2020 and December 2023 totalled only
KRW1.6bn. Regulators may lower the final sum if the company
implements swift remedial actions, as seen when SK Telecom’s
initial fine was reduced.
Civic
organisations are demanding strengthened consumer protection laws,
including class action mechanisms, to ensure companies face a real
risk of financial failure, thereby incentivising better security
practices. Responding to the public concern, Presidential chief of
staff Kang Hoon-sik on December 1, instructed officials to develop
measures to guarantee the punitive damages system is fully
effective when corporate fault is established.
© 2025 bne IntelliNews, source Magazine
