Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Coupang CEO resigns over data breach
Members of the People's Solidarity for Participatory Democracy (PSPD), the Voice for Consumers and Minbyun — Lawyers for a Democratic Society hold applications for collective dispute resolution filed by citizens affected by Coupang's recent data breach at the PSPD office in Jongno District, Seoul, Wednesday. Yonhap
By Lee Gyu-lee
Chief administrative officer named interim head
Coupang CEO Park Dae-jun / Yonhap
Coupang Corp. announced on Wednesday that its CEO Park Dae-jun has resigned amid mounting public outrage over a recent massive data breach that compromised the personal information of nearly all its users.
“I deeply apologize to the public for the disappointment caused by the recent personal data incident,” Park said through the company. “I take full responsibility for both the incident and the handling of the case, so I have decided to step down from all my positions.”
Following Park’s resignation, the company’s U.S. parent company Coupang Inc. has appointed its chief administrative officer and general counsel, Harold Rogers, as Coupang Corp.’s interim CEO to take charge in responding to fallout from the incident.
The company explained that Rogers will focus on easing customer concerns from the data breach and on managing both internal and external crises to guide the organization back to stability.
“We deeply apologize for the concern caused by the personal data leak,” the company said. “We will strengthen information security and do our utmost to restore trust and prevent a recurrence.”
The leadership change reflects the company’s move to bring its U.S. parent firmly into the driver’s seat for a more hands-on role in resolving the crisis. Until now, Coupang had responded to the data leak primarily through its Korean subsidiary.
The timing coincides with the U.S. entity itself facing growing legal pressure, with class action lawsuits in the United States for the personal data breach of 33.7 million customers. The leaked information included the names, email addresses, phone numbers, delivery information and purchase histories, allegedly stolen by a former company employee.
SJKP, the U.S. branch of Daeryun Law Firm, announced that it plans to file a lawsuit in a U.S. court to seek punitive damages against Coupang Inc., claiming the company failed in data security and corporate-governance obligations.
Coupang Corp.’s interim CEO, Harold Rogers / Courtesy of Coupang
Daeryun has also filed a complaint in Korea against Park for negligence and for violating Korea's Personal Information Protection Act. The law firm said it will proceed with the litigation simultaneously in Korea and the U.S.
Another U.S. law firm, DJS Law Group, has also started bringing in potential plaintiffs for a class-action lawsuit against Coupang Inc. to pursue punitive damages in U.S. courts.
Since the breach surfaced on Nov. 29, the public and regulatory backlash has only escalated. Coupang founder and Chairman Kim Bom-suk, also known as Bom Kim, has been formally summoned to testify at a National Assembly hearing scheduled for Dec. 17.
Lawmakers are expected to question him over alleged lapses in corporate oversight and the company’s slow initial response to the breach. Adding to the scrutiny, police conducted a raid on Coupang’s Seoul headquarters on Tuesday and Wednesday, seizing internal servers and documents.
President Lee Jae Myung ordered a thorough investigation into the cause of the breach and to “hold those responsible strictly accountable” during a cabinet meeting earlier this month.
Prime Minister Kim Min-seok also vowed on Wednesday to take strict action against Coupang for any violations of the law, saying the case has “gone far beyond an acceptable threshold.”