South Korean e-commerce giant Coupang, often called the “Amazon of Korea,” has experienced a data breach that exposed the personal information of up to 34 million user accounts, representing more than 90 percent of the country’s working-age population.
The Wall Street Journal reports that Coupang, often referred to as South Korea’s equivalent of Amazon, has found itself at the center of a major data breach scandal that has rocked the nation. The incident, which went undetected for nearly five months, has exposed the personal information of up to 34 million user accounts, affecting over 90 percent of South Korea’s working-age population.
The data breach came to light on November 18, when a customer alerted Coupang to suspicious activity. Initially, the company claimed that the incident was a data “exposure” affecting only around 4,500 customer accounts. However, within days, Coupang revised the figure, revealing the true extent of the breach.
Investigations have uncovered that the alleged perpetrator, believed to be a Chinese national who had previously worked as a software developer for authentication systems at Coupang, had retained an internal authentication key even after leaving the company roughly a year ago. This key granted the suspect unfettered access to the personal information of Coupang users, including names, phone numbers, and even the keycodes to enter residential buildings. The infiltration, which began on June 24, went unnoticed for months as the suspect used overseas servers to access the company’s systems, appearing as if he were still a Coupang employee.
While the alleged perpetrator did not seem to access other sensitive areas such as credit card numbers or government-issued identification numbers, the scale of the breach has left South Koreans reeling. The incident has led to the resignation of the executive overseeing Coupang’s operations in South Korea, where the company generates the overwhelming majority of its revenue.
Multiple government investigations are currently underway, with local police raiding Coupang’s Seoul office last week in search of more details about the leak’s origins. South Korean President Lee Jae Myung has called for tougher penalties for personal data breaches, stating that companies must face the possibility of bankruptcy if they fail to protect user information adequately.
Under South Korea’s personal information protection laws, Coupang could face a fine of up to three percent of its average annual revenue generated during the prior three years, which could amount to a record $750 million. The Korea Fair Trade Commission is also investigating whether Coupang made its account deletion process difficult after customers raised complaints following the leak’s public disclosure.
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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