South Korean e-commerce giant Coupang, often called the 'Amazon of Korea', has announced a massive compensation package following a significant data breach that impacted millions of its users. The company confirmed it will provide compensation worth 1.69 trillion won (approximately $1.18 billion) to the holders of 33.7 million accounts affected by the leak.
Compensation Details and Founder's Apology
The compensation announcement came just one day after Coupang's founder, Kim Bom, issued his first public apology for the security incident. In his statement, Bom promised compensation but did not initially specify the amount. The company later confirmed to Reuters that affected users will receive 50,000 won vouchers for use on Coupang's various services.
Bom, who is based in the US, has faced severe criticism in South Korea for declining to attend recent parliamentary hearings in Seoul, citing prior commitments. His apology was posted on the company's official website, where he offered "sincere apologies" on behalf of all employees.
What Happened in the Coupang Data Breach?
The cybersecurity incident occurred in November, when hackers compromised the personal information of millions of users. The compensation and formal apology arrived roughly a month later, in December.
In his detailed apology letter, Kim Bom expressed devastation over the incident and acknowledged the company's failure in its initial response and communication. He stated that Coupang's priority was to prevent secondary damage by dedicating all resources to recovering the leaked data.
Recovery Efforts and Future Security Plans
Coupang reported that, after months of effort, it has successfully recovered 100% of the leaked customer information through cooperation with the South Korean government. The investigation confirmed that the leaked information was limited to 3,000 records on the leaker's computer and was not distributed or sold externally.
Bom admitted that focusing solely on recovery led to a neglect of public communication, for which he apologised. He pledged that Coupang will now comprehensively revamp its information security measures and investments to prevent a future recurrence. The company's board will oversee the development and swift implementation of the compensation plan for affected Korean customers.
This incident has sparked significant backlash from both users and lawmakers in South Korea, highlighting the growing concerns around data security for major digital platforms.
