Is Coupang's $1.17 Billion Compensation Plan Enough After Data Breach?
Click to start listening
Synopsis
Coupang, South Korea's e-commerce giant, responds to a major data breach affecting millions with a $1.17 billion compensation plan. Following a public apology from its founder, the initiative aims to reassure customers and restore trust.
Key Takeaways
- Coupang announced a compensation plan of over $1.17 billion.
- 33.7 million customers will receive 50,000 won each in discounts and coupons.
- Compensation payments will start on January 15, 2024.
- Data breach affected nearly two-thirds of South Korea's population.
- The company aims to rebuild trust through customer-centric initiatives.
Seoul, Dec 29 (NationPress) The e-commerce powerhouse Coupang has introduced a compensation initiative valued at over 1.68 trillion won ($1.17 billion) following a significant breach of personal data.
This announcement follows a public apology from Coupang's founder, Kim Bom-suk, who addressed the incident affecting almost two-thirds of South Korea's populace, according to reports from Yonhap news agency.
As part of the compensation scheme, the U.S.-listed company will offer 50,000 won worth of discounts and coupons to each of its 33.7 million customers, which includes paid Coupang Wow members, casual users, and former customers whose accounts have been closed, as mentioned in the company’s press release.
Payments will commence on January 15, and will be distributed gradually.
“We view this incident as a pivotal moment; Coupang will fully adopt customer-centric principles and take responsibility to ensure it becomes a company that customers can trust,” stated Coupang's interim Chief Executive Officer, Harold Rogers, in the release.
The compensation includes 5,000 won for Coupang's e-commerce platform, 5,000 won for the food delivery service Coupang Eats, 20,000 won for travel products, and 20,000 won for R.LUX luxury beauty and fashion items.
Recently, Coupang revealed that a former employee had been identified as the source of the data leak through forensic analysis, and they have recovered the hacking equipment along with a confession from the perpetrator.
While the company claims that data from only about 3,000 accounts was saved and later deleted by the individual responsible, the government has rejected Coupang’s assertions as a “unilateral claim,” emphasizing that a joint investigation is still pending conclusions.
On November 29, Coupang confirmed that the private information of 33.7 million customer accounts had been compromised, a number significantly greater than the 4,500 accounts initially reported to authorities on November 20.
Given that Coupang's active users in its product commerce division, which includes its delivery service, reached 24.7 million in Q3, the magnitude of the breach suggests that nearly the entire user base may have been impacted.
The compromised data included users' names, phone numbers, email addresses, and delivery addresses.
Point of View
It's crucial to acknowledge the gravity of the data breach that has impacted a vast segment of the South Korean population. Coupang's compensation plan is a significant step towards accountability, yet the government’s skepticism highlights the need for thorough investigations to ensure consumer trust is restored. The importance of transparency in such incidents cannot be overstated.
NationPress
03/01/2026
Frequently Asked Questions
What is the total amount of Coupang's compensation plan?
Coupang's compensation plan is valued at over 1.68 trillion won, equivalent to $1.17 billion.
Who is eligible for the compensation?
All 33.7 million customers, including paid Coupang Wow members, regular users, and former customers, are eligible for the compensation.
When will the compensation payments start?
Compensation payments are set to begin on January 15.
What data was compromised in the breach?
The compromised data included users' names, phone numbers, email addresses, and delivery addresses.
How is Coupang responding to the incident?
Coupang is committing to customer-centric principles and taking full responsibility for the incident.
