Did the Coupang data breach impact 33 million customers?
Synopsis
Key Takeaways
- 33 million customers impacted in the Coupang data breach.
- Government and private sector investigating the incident.
- Coupang disputes the extent of the data leak.
- Compensation plan of 1.68 trillion won announced.
- Gradual compensation payments start from January 15.
Seoul, Dec 30 (NationPress) Science Minister Bae Kyung-hoon confirmed on Tuesday that a significant data breach at Coupang has impacted 33 million customers in South Korea, raising alarms about a report issued by the US-based e-commerce firm last week.
“A collaborative investigation involving the Personal Information Protection Commission and law enforcement has disclosed that the names and email addresses of over 33 million users were compromised,” Bae stated during a parliamentary discussion.
This statement follows Coupang’s assertion last week that data from merely 3,000 accounts was downloaded and subsequently deleted by the perpetrator, according to the Yonhap news agency.
“We cannot concur with that assertion,” Bae emphasized.
The minister also indicated that sensitive information, including users' addresses and order history, is believed to have been leaked.
“We express profound concern towards Coupang, which released a statement that lacked coordination with the government,” he remarked.
In response to the massive data breach, Coupang has proposed a compensation package exceeding 1.68 trillion won (approximately $1.17 billion).
This compensation announcement was made shortly after Coupang founder Kim Bom-suk offered his first public apology since the incident, which affected nearly two-thirds of South Korea's population, as reported by Yonhap.
Under this plan, the US-based company will provide 50,000 won in discounts and coupons to each of the 33.7 million customers, encompassing paid Coupang Wow members, regular users, and former customers who have deactivated their accounts, as stated in a press release.
Compensation disbursements are set to commence gradually from January 15, the company added.
“We view this incident as a pivotal moment; Coupang will fully adopt customer-centric principles and uphold its responsibilities diligently, evolving into a company that customers can rely on,” remarked Coupang's interim Chief Executive Officer (CEO) Harold Rogers in the release.
The compensation will include 5,000 won for Coupang’s e-commerce platform, 5,000 won for food delivery service Coupang Eats, 20,000 won for Coupang's travel offerings, and 20,000 won for R.LUX luxury beauty and fashion items.
Last week, Coupang stated it had identified a former employee responsible for the data breach through forensic analysis, recovered the devices used in the hacking, and obtained a confession from the suspect.
However, the government has dismissed Coupang’s conclusions as a “unilateral claim,” noting that a joint public-private investigation into the matter has yet to finalize any findings.