Coupang data breach triggers $1.1B compensation and political scrutiny

South Korean e-commerce giant Coupang has announced a compensation package worth 1.69 trillion won ($1.17 billion) for millions of users affected by a major data breach disclosed last month.

The move marks one of the largest customer compensation efforts following a cybersecurity incident in South Korea and comes amid regulatory scrutiny and leadership upheaval at the company.

Compensation plan for affected users

Coupang said on Monday that it will provide purchase vouchers worth up to 50,000 won to customers whose personal information was compromised in the breach.

The vouchers will be applicable across several Coupang services, including its core retail platform, food delivery, travel offerings, and luxury beauty platform R.LUX.

According to the company, the compensation will cover approximately 33.7 million to 34 million users, including former customers who closed their accounts after the breach was made public.

Eligible users will be able to check their status starting Jan. 15.

The company described the compensation as a measure to address customer concerns following what has been described as South Korea’s largest-ever data breach.

Interim CEO Harold Rogers said the move reflected Coupang’s responsibility toward its users.

“I once again deeply apologize to our customers,” Rogers said, adding that the company would “fulfill its responsibilities to the end.”

Apologies and leadership fallout

The announcement follows a series of public apologies from Coupang’s leadership.

Founder and chairman Bom Kim issued an apology a day earlier, saying he was “devastated” by the disappointment experienced by customers.

Kim acknowledged that the company failed to communicate clearly in the early stages of the incident and said his public apology had come too late.

Kim explained that he initially believed it was best to speak publicly only after all facts surrounding the breach were confirmed.

“In retrospect, this was a poor judgment,” he said, adding that the situation had weighed heavily on him since learning of the breach.

The data breach, which was revealed on Nov. 18, has already led to significant leadership changes.

CEO Park Dae-jun resigned earlier this month following the disclosure.

Both Kim and Park also failed to appear at a parliamentary hearing related to the breach, drawing criticism as the incident disrupted the lives of millions across the country.

Investigation findings and regulatory scrutiny

Coupang has said it is cooperating with authorities and that it has recovered all leaked customer information through collaboration with the government.

The company stated that it identified a former employee who allegedly accessed personal data from around 33 million accounts.

According to Coupang, data from approximately 3,000 accounts was found stored on the suspect’s computer.

Kim said the company’s investigation indicated that the information was not distributed or sold externally.

Storage devices belonging to the suspect have also been recovered, the company added.