Coupang data breach threatens livelihoods of small online vendors
Delivery trucks are parked at a Coupang logistics center in Seoul, Thursday. Yonhap
A small business owner who sells baby care products on Coupang said the recent large-scale data breach at the e-commerce giant has dealt a direct blow to the livelihoods of marketplace sellers.
In a post on an online self-employed community, the merchant wrote, “About 70 percent of our online sales come from Coupang, but orders have dropped by 30 percent since the breach,” adding that a prolonged slump would worsen inventory pressure and operating costs.
Another seller in the health supplement category voiced similar concerns. “Ad spending that used to run out within a day or two is barely being used now because traffic has plunged.”
The merchant added that growing consumer distrust of the platform is freezing overall sales momentum.
As Coupang’s data breach continues to unfold, small business owners are becoming increasingly anxious, with declining consumer activity — from hesitant spending to users abandoning the platform — already translating into tangible revenue losses.
Coupang, which specializes in next-day delivery of groceries and daily necessities, is one of Korea’s most heavily used e-commerce platforms, with 34 million monthly active users as of November.
Last weekend, the U.S.-listed firm said the personal information of 33.7 million customers had been compromised, including names, contact details, email addresses and delivery histories, affecting virtually all users. This means the personal information of three out of every four adults in Korea was exposed.
Following the disclosure, a rising number of users began suspending their use of Coupang or closing their accounts.
Reports have also surged of suspicious login attempts, unexpected overseas payment approvals and smishing, or text message scams, fueling public anxiety. With fears of secondary damage growing, more consumers are stepping back from the platform, making a decline in sales for marketplace sellers inevitable.
According to Coupang’s 2025 Impact Report, small- and medium-sized enterprises accounted for around 75 percent of all sellers on the platform.
If boycotts or user departures continue to spread, the impact on these merchants, many of whom depend on the platform as a primary source of income, could become significant.
“Customer withdrawal from Coupang is already becoming visible, dealing a direct blow to small merchants on the platform," an official from the Korea Federation of Micro Enterprises said. "Before losses for small business owners spiral out of control, the firm needs to demonstrate accountability for this incident.”
Still, fashion and cosmetics companies, where consumers purchase less frequently, have not yet seen clear sales changes, according to industry officials. Fashion and cosmetics brands usually operate under a direct-purchase model, in which Coupang buys large quantities of products and sells the stock on its own, meaning the impact of the incident does not show up right away.
Industry officials said supply volumes to the platform remain unchanged for now, though they are closely monitoring developments amid growing consumer unease.