Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Coupang’s internal probe into data breach draws renewed bipartisan backlash
Members of religious groups call for Coupang founder Kim Bom-suk's public apology and a government investigation into him during a press conference at Gwanghwamun Square in Seoul, Friday. Yonhap
By Park Jae-hyuk
Anger over e-commerce firm paves way for latecomers to expand market presence
Coupang has provoked renewed backlash from policymakers and consumers here through its unilateral announcement Thursday of findings from its internal investigation into last month’s data breach, which affected at least 33.7 million users.
Industry analysts have warned that the company could lose market share to rivals that have adopted its growth strategies if it maintains its uncooperative stance, a move seen as aimed at shielding founder Kim Bom-suk, also known as Bom Kim, from government scrutiny.
On Friday, lawmakers from both ruling and opposition parties slammed Coupang’s announcement as arrogant, calling the disclosure an unverifiable underestimation of the cybersecurity incident’s impact. The criticism followed the National Assembly’s condemnation of Kim’s refusal to testify at parliamentary hearings.
Coupang said in a press release that it had identified the former employee responsible for the leak, retrieved all devices used in the breach and confirmed that the perpetrator had retained data from only 3,000 user accounts before deleting it. The company abruptly released the statement while the presidential office was holding an emergency meeting with ministers to discuss countermeasures against the breach.
“Coupang mocked Korean citizens by acting like a detective,” said Rep. Park Kyung-mee of the ruling Democratic Party of Korea (DPK). “The National Assembly will thoroughly examine Coupang’s security management and hold it accountable for misleading the public and acting unilaterally.”
Rep. Park Jeong-hun of the main opposition People Power Party urged the government to consider suspending Coupang’s operations and imposing a fine equal to 10 percent of its annual revenue.
“If we overlook this offense, we will end up becoming Coupang’s slave,” he said.
Unionized couriers condemn Coupang founder Kim Bom-suk during a press conference in front of Coupang Logistics Services headquarters in Seoul, Friday. Yonhap
The Korea National Council of Consumer Organizations, which has been boycotting Coupang, called for the strongest possible sanctions against the firm, criticizing its unilateral disclosure of information while still under investigation by a joint public-private probe team. The council floated the possibility of Coupang destroying evidence during its internal investigation.
In response, Coupang issued another press release later on Friday, claiming that its investigation had been done at the request of the government.
The company said it has been cooperating with the government since Dec. 1 and contacted the perpetrator on Dec. 14, as the government had suggested on Dec. 9. It also claimed that it handed over all evidence, including the perpetrator's desktop, hard drive and laptop, to the authorities.
The police, however, denied having any communication with Coupang before Dec. 21, when the company handed over the laptop and other evidence. It also remains unclear which ministry or organization constitutes the "government institution" that Coupang claims to have cooperated with.
A day earlier, the government described Coupang’s disclosure as "unilateral" and appointed Bae Kyung-hoon, deputy prime minister and minister of science and ICT, to replace the second vice minister in leading meetings of the pan-government task force overseeing the case.
The presidential office is reportedly keeping a close watch on Coupang’s suspected ties with U.S. politicians, as recent criticism of the Korean government’s probe into the Seattle-based firm is believed to be linked to Coupang’s lobbying efforts in the U.S.
“Misled by false information, some U.S. politicians have defended Coupang and criticized our president. This is a clear violation of national sovereignty,” said DPK Rep. Choi Min-hee, chair of the National Assembly’s Science, ICT, Broadcasting and Communications Committee.
Amid suspicion that Coupang has sought to turn the issue into a diplomatic dispute, there is rising expectation that the government may take tougher action.
“Coupang’s lukewarm response has prompted the government to take a far stricter stance than it did on other data breaches,” IBK Securities analyst Nam Sung-hyun said. “The Fair Trade Commission chairman has warned of a possible business suspension and heavy penalties, while the National Assembly is pushing for a joint hearing.”
The analyst attributed Coupang’s complacent attitude to a misplaced belief that the government would not suspend its operations and risk potential disruption to the job market and logistics services.
“It is hard to rule out the possibility of competitors gaining market share, given the strategic partnerships between e-commerce and logistics companies,” he said. “Coupang seems to be misjudging the situation.”