In a historic move to address one of the largest cybersecurity lapses in South Korean history, e-commerce giant Coupang has officially announced a massive 1.69 trillion won ($1.18 billion) compensation package for users affected by a widespread data leak. The announcement, made on Monday, aims to provide restitution to the holders of 33.7 million accounts nearly two-thirds of the South Korean population whose personal information was exposed during a months-long security vulnerability. Under the newly unveiled plan, each affected individual is slated to receive a total of 50,000 won (approximately $35) in the form of service-linked vouchers. These vouchers, which can be claimed starting January 15, 2026, are structured to include 5,000 won for general Coupang products, 5,000 won for the Coupang Eats delivery service, and 20,000 won each for the company’s travel and luxury beauty platforms.
The decision follows a period of intense public and regulatory pressure after it was revealed that a former employee had maintained unauthorized access to sensitive company keys for nearly five months, from late June to November 2025. While Coupang has emphasized that critical financial data such as passwords and payment information remained secure, the breach did expose names, phone numbers, email addresses, and purchase histories. In a statement on Sunday, Coupang founder Kim Bom issued his first formal public apology for the incident, acknowledging the company's failure to communicate clearly and promptly during the early stages of the crisis. Despite this gesture of contrition, Kim has faced criticism for declining to attend upcoming parliamentary hearings scheduled for late December, citing prior international commitments. This absence has further fueled tensions with lawmakers who are currently reviewing the company's adherence to the Personal Information Protection Act.
The compensation strategy has already ignited a significant debate within South Korea’s consumer advocacy circles and the National Assembly. While Coupang describes the measure as a "responsible and proactive" effort to restore trust, critics argue that providing compensation in the form of internal vouchers rather than cash serves more as a marketing tactic to drive traffic back to Coupang’s ecosystem than a genuine act of restitution. The Korea National Council of Consumer Organizations expressed concern that the vouchers, particularly those tied to less-frequented services like Coupang Travel and the luxury platform R.LUX, may not adequately address the severity of the privacy violation. Furthermore, the South Korean government has formed a cross-ministerial task force to investigate the breach, with the Personal Information Protection Commission warning of potential fines that could exceed 1.2 trillion won, while thousands of users have already joined class-action lawsuits seeking additional damages.
As the retail titan navigates this legal and reputational minefield, the financial impact of the compensation plan represents a significant portion of its recent earnings, highlighting the gravity of the situation. Coupang reported approximately 12.8 trillion won in revenue for the third quarter of 2025, meaning this settlement package alone accounts for a substantial percentage of its quarterly turnover. With the government’s investigation ongoing and public sentiment remains divided, the fallout from this breach is expected to set a new precedent for corporate digital governance and data privacy standards in South Korea's highly competitive e-commerce market.
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