Coupang, the e-commerce giant often called the “Amazon of Korea,” has announced a compensation plan worth $1.17 billion for 34 million users affected by a massive data breach disclosed in November.
CNBC reports that in the wake of a major data breach that came to light on November 18, online retail behemoth Coupang has pledged to provide 1.69 trillion South Korean won ($1.17 billion) in compensation to the 34 million users impacted by the incident. The company’s interim CEO, Harold Rogers, described the move as a “responsible measure” for their customers and vowed to “fulfill its responsibilities to the end.”
Breitbart News previously reported on the data breach:
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.
According to a statement released by Coupang on Monday, the compensation will come in the form of purchase vouchers worth 50,000 won, which can be used across various Coupang services. Notably, the company has extended the eligibility for these vouchers to former customers who closed their Coupang accounts following the data breach. Users can begin checking their eligibility for the vouchers starting January 15.
The announcement of the compensation plan follows a series of apologies from Coupang’s top executives. In a separate statement, Coupang founder Kim Bom expressed his devastation over the disappointment people have experienced due to the breach. Kim acknowledged that his apology was “overdue,” explaining that he initially believed it was best to communicate publicly and apologize only after all the facts were confirmed. “In retrospect, this was a poor judgment,” he admitted.
The data breach, which led to the resignation of CEO Park Dae-jun earlier this month, has prompted increased scrutiny of Coupang’s security measures. However, Kim Bom assured that the company has recovered all the leaked customer information through cooperation with the government and the storage devices belonging to the suspect behind the breach. He also noted that the customer information stored on the suspect’s computer was limited to 3,000 records and was not distributed or sold externally.
Breitbart News previously reported that the Coupang data breach and South Korean’s actions and statements against the company contributed to trade friction between the country and the United States:
The dispute has now spilled directly into U.S. trade policy. The Office of the United States Trade Representative (USTR) abruptly canceled a scheduled trade implementation meeting with South Korean officials this week, effectively freezing progress on the U.S.–Korea trade deal.
Shortly afterward, USTR issued a public warning on X aimed at countries — including South Korea — accused of harassing American companies abroad. Senior members of Congress have also intervened, holding hearings and issuing warnings to Seoul.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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