Coupang Pledges Massive Compensation After Data Breach

Coupang, a South Korean retail giant, declares a mass customer compensation in response to a data breach that affected millions of users.

Coupang, the biggest e-commerce platform in South Korea, has declared that it would hand out 1.69 trillion won ($1.17 billion) in compensation following a large-scale data breach that targeted approximately 34 million customers, an important move in the history of the retail sector in South Korea.

The company official statement indicated that eligible users will be entitled to purchase vouchers amounting to 50,000 won, which are redeemable in different Coupang services. Customers in the past who terminated their accounts following the breach shall also be eligible. The customers will be able to start checking the availability of the vouchers starting January 15.

The interim CEO Harold Rogers called it a responsible action and said that Coupang will do everything it can to meet its customer commitments. A public apology was made by founder Kim Bom, who acknowledged the lack of communication in the company initially and how it affected the image of the retail brand.

The breach of data, announced on November 18, led to the changes in leadership, such as the resignation of the CEO, Park Dae-jun. Coupang claimed that all stolen customer information was recovered with the government's collaboration and that account information was not sold to any third party.

The attack has increased inquiries on online retail methods on cybersecurity, and greater demands are being placed on openness and responsibility. According to analysts, the response adopted by Coupang can be used as an example of effective work in managing crises in the digital retail market in Asia.