Coupang ordered to pay data leak victims $70 each - The Korea Times

Coupang ordered to pay data leak victims $70 each

Coupang's headquarters in Seoul / Yonhap

Coupang's headquarters in Seoul / Yonhap

Korea’s consumer dispute mediation committee on Friday recognized Coupang’s liability for damages over its massive personal data breach last year and ordered the U.S.-listed firm to compensate affected users.

The committee under the state-run Korea Consumer Agency decided that the e-commerce giant must pay 100,000 won ($70) per person, in cash or as Coupang Cash, to 50 consumers who jointly applied for collective dispute mediation.

It is the first time a Korean dispute mediation body has formally acknowledged Coupang’s responsibility for damages arising from the large-scale leak of data involving 33.7 million customers.

In its decision, the committee pointed out that not only basic personal data such as names, email addresses and home addresses had been leaked, but also highly sensitive information including apartment entrance passwords and order histories, which are closely tied to users’ private lives.

The committee also took into account that personal data had been siphoned over a long period, from April to November, and that emails about the leak were sent by the hacker to some consumers, suggesting that the data was at genuine risk of being misused.

The committee also noted that Coupang has insisted there is no risk of further leaks, but said this cannot be accepted with certainty. It therefore concluded that the firm is liable to pay compensation for the mental distress suffered by consumers as a result of the breach.

The parties have 15 days from the date they receive the decision to inform the committee whether they accept the mediation proposal. If no separate objection is filed within that period, the proposal is deemed accepted, and once the mediation is finalized, it carries the same legal effect as a court-approved settlement.

If Coupang accepts the decision, the committee plans to proceed with follow-up measures, including seeking a compensation plan from the company so that other victims who did not take part in this collective mediation can receive payments on the same terms.

Separately in June, the Personal Information Protection Commission imposed a 624.68 billion won fine and a 16.8 million won administrative penalty on Coupang over the data leak.

Jung Min-ho

Jung Min-ho has worked as a staff writer at The Korea Times since 2012, mostly covering social and political issues. He currently belongs to the Politics & City Desk where he covers topics such as health, labor and human rights. Prior to joining the team, he was responsible for covering North Korea and sports. His article about a biosecurity breach of Middle East respiratory syndrome won him an award from the Korea Science Journalists Association in 2016. He is also the co-author of the book, "Medical Pioneers of Korea" (2019). He served as the head of the international relations committee at the Journalists Association of Korea from 2021 to 2023.

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