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Data Breach · E-Commerce · Regulatory Fine · South Korea
South Korea's Personal Information Protection Commission imposed a record 624.68 billion won (US$408 million) fine on e-commerce giant Coupang for violating data safety obligations and unlawfully collecting personal data, a decision Coupang plans to challenge in court.
This fine is the largest ever for a data leak in South Korea, significantly surpassing the previous record of an $88 million fine on mobile carrier SK Telecom. The commission stated that "inadequate basic safeguards" led to the exposure of personal data for approximately 37.5 million users and criticized Coupang for delaying breach notifications, which deprived individuals of the opportunity to prevent secondary harm.
Coupang maintains that only 3,000 customer records were involved and expressed regret that its proactive measures and factual explanations were not sufficiently reflected in the commission's decision. The commission also cited Coupang for unlawfully collecting online activity records of about 11.17 million users from third-party websites and apps.
This dispute has become a source of friction between Seoul and Washington, with U.S. lawmakers raising concerns about "discriminatory regulatory actions" against American businesses, according to AFP.
