Coupang announces $1.2B compensation for users hit by data leak
What's the story
South Korean e-commerce giant Coupang has announced a compensation package worth ₩1.69 trillion (nearly $1.18 billion) to 33.7 million account holders affected by a massive data leak. The company will provide customers with ₩50,000 vouchers each, redeemable on its platforms and services. The announcement came after Coupang founder Kim Bom issued a public apology for the breach and promised to speed up compensation measures.
Backlash
Criticism over Coupang's compensation strategy
The decision to offer vouchers has drawn criticism from lawmakers and consumer advocacy groups. Choi Min-hee, a member of the ruling Democratic Party and chair of the National Assembly's Science, ICT, Broadcasting and Communication committee, slammed Coupang for "bundling coupons for services no one uses." The Korea National Council of Consumer Organizations also criticized the plan as trivializing consumers' suffering and treating it as a marketing gimmick.
Apology and absence
Coupang's founder apologizes, faces criticism for non-attendance
Bom has apologized for the data leak and assured customers that all compromised personal information has been recovered. He confirmed that data from 3,000 customers was saved by a suspect on his personal computer but wasn't transferred or sold. Despite these assurances, Kim has faced criticism for not attending parliamentary hearings on the matter due to prior commitments.
Hearings ahead
Compensation plan and parliamentary hearings
Coupang's compensation plan has been announced ahead of two days of parliamentary hearings starting Tuesday. The company has not commented further on public criticism of its compensation strategy. South Korean lawmakers are considering legal action against Bom, arguing that most of the New York-listed online retailer's revenue comes from sales in South Korea.