Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Interim CEO seen as Coupang’s move to shield founder from Assembly probe
Coupang Corp. headquarters in Seoul / Yonhap
By Nam Hyun-woo
Coupang Inc. Chairman Bom Kim will likely be absent from Dec. 17 hearing
Coupang has replaced its Korea head to address the aftermath of its massive data breach affecting nearly 34 million users, in what appears to be a strengthened effort to shield founder and Coupang Inc. Chairman Kim Bom-suk, also known as Bom Kim, from growing domestic criticism ahead of a Dec. 17 National Assembly hearing.
Coupang Inc., the U.S. parent company of its Korean unit Coupang Corp., has appointed its chief administrative officer and general counsel, Harold Rogers, as the Korean unit’s interim CEO to lead the company’s response to the fallout from the incident.
Rogers, who joined Coupang in 2020, is considered one of Kim’s closest aides. A legal expert, he graduated from Brigham Young University and Harvard Law School, and previously worked as an attorney at Sidley Austin and as chief ethics and compliance officer at global telecommunications firm Millicom.
Coupang Corp. interim CEO Harold Rogers / Courtesy of Coupang
Rogers’ appointment is widely seen as a move to prepare for the company’s uphill legal battles. In the wake of the data breach, the company is facing not only class action lawsuits from users but also growing political momentum to introduce stronger punitive measures against the company.
After his appointment, Rogers told employees in an internal message that the company’s priorities are clear, adding that it would fully address the incident and restore customers’ trust.
Although Rogers and Coupang have emphasized that their priority is addressing the breach, his appointment is fueling suspicions that the company is seeking to further shield Kim from mounting political pressure, particularly ahead of next week’s National Assembly hearing.
The Assembly’s Science, ICT, Broadcasting and Communications Committee has officially requested Kim’s presence as a witness at the upcoming hearing, because outgoing Coupang Corp. CEO Park Dae-jun failed to provide clear answers during multiple questioning sessions and admitted that he had not met Kim even once this year.
Coupang has been claiming that Kim is unrelated to the case because he holds no board seat or official post at Coupang Corp., but Park’s remarks showed that Kim is exerting his influence over Coupang’s Korea operations.
Kim is widely expected to decline the Assembly’s request, as he has during previous audits and sessions, citing his stay in the United States. Coupang said Rogers will attend the hearing in his place.
There are concerns that if Rogers appears in Kim’s place, the session itself may lose momentum, as Rogers is expected to answer through interpretation, a process that could slow down the hearing.
Coupang Corp. Chief Information Security Officer Brett Matthes speaks during a National Assembly questioning session in Seoul, Dec. 2. Yonhap
When Coupang Corp. Chief Information Security Officer Brett Matthes appeared for questioning at the National Assembly on Dec. 2, there were several instances where he changed his answers due to apparent misunderstandings of the lawmakers’ questions.
“It seems unclear whether the company is trying to take the responsibility or dodge it,” a lawmaker said. “I don’t think the new CEO is better informed about what has happened in Coupang Corp. than the outgoing CEO. What we need is an answer from who is responsible, not the appearance of a legal expert.”
Rep. Lee Hai-min of the minor Rebuilding Korea Party wrote on Facebook, “Founder Kim is keeping his silence and (former) CEO Park resigned just before the hearing.”
She added: “In the face of this unprecedented data leak that affected 33.7 million citizens, Coupang has yet to identify anyone responsible.… Explaining the situation and taking responsibility before the public is the very least the company should do."
According to the Act on Testimony and Appraisal before the National Assembly, a witness may be absent from a hearing if there is a “legitimate” reason, if he or she submits a written statement explaining the nonappearance no later than three days before the session. However, there is no clear interpretation on what constitutes a legitimate reason.
Reportedly, lawmakers are considering filing a complaint or even seeking a compulsory summons if Kim does not appear at the hearing, though legal uncertainties remain regarding its implementation.
Meanwhile, the government is expediting its investigation. Police on Thursday searched Coupang Corp. headquarters in Seoul for the third time, investigating the network intrusion and leakage of confidential information.
Aside from damages, fines for the breach are expected to reach 1 trillion won ($678.5 million), and the government is now considering imposing even stronger penalties by introducing additional punitive fines.