Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
FTC may look into Coupang’s massive data leak scandal
A Coupang delivery truck is parked at the firm's logistics center in Seoul, Tuesday. Yonhap
By Lee Min-hyung
Founder urged to take responsibility for escalating controversy
The Fair Trade Commission (FTC) may soon launch an investigation into Coupang’s massive data leak scandal in coordination with a consumer protection agency, as hundreds of thousands of affected users prepare to file a class action lawsuit, its officials said Wednesday.
The incident has escalated into a full-blown social controversy after it was confirmed that the personal data of approximately 33.7 million Coupang customers was leaked starting in June.
The antitrust watchdog is not the primary authority handling the latest scandal, but it signaled the possibility of intervening after some victims filed for dispute resolution with the Korea Consumer Agency, a quasi-governmental organization under the FTC.
“The FTC’s basic stance is that we can indirectly look into the incident if the affected customers bring the case to the consumer agency,” an FTC official said.
If the consumer agency requests assistance, the watchdog and the agency will jointly launch an investigation into Coupang, according to the official.
With the largest-ever data leak scandal showing no signs of abating, calls are growing for Coupang founder Kim Bom-suk, also known as Bom Kim, to appear publicly and take responsibility for the fiasco. Kim serves as chairman of Coupang Inc.’s board.
Coupang founder Bom Kim attends the Allen & Company Sun Valley Conference in Idaho, July 8, 2022. Courtesy of Coupang
The FTC cannot designate Kim as the legal head of the conglomerate because he is a U.S. citizen, a situation critics say allows him to evade legal responsibility despite his significant influence over the company’s management.
Another official from the watchdog said that nothing will change even if he is designated as the legal chief of the company.
“We designate legal chiefs of each conglomerate annually, but the FTC does not have any immediate plans to designate the Coupang founder as there are no legal requirements for us to do so,” the official said.
“Even if Kim is designated as Coupang’s legal chief, nothing will change in terms of regulations affecting Kim."
Experts argue that Kim still bears moral responsibility for the latest data leak, given his immense influence over Coupang’s key decisions and major management activities.
“It is not proper to say that he can evade the legal responsibility for the data leak, as he is a U.S. citizen,” said Kim Dae-jong, a professor of business administration at Sejong University.
“What the public and customers demand for him is to take moral and ethical responsibilities for the latest fiasco.”
Others said Coupang’s executives and those in charge of the incident has to be held legally responsible.
“The point should be to take appropriate legal measures against those in charge of the incident, rather than emotionally responding to the scandal,” said Choi June-sun, professor emeritus of law at Sungkyunkwan University.