Coupang clarifies data breach vouchers won't require lawsuit waivers at hearing

At a December 31 parliamentary hearing, Coupang's interim CEO Harold Rogers assured lawmakers that the company's 1.685 trillion won compensation plan for the November data breach does not require affected customers to waive lawsuit rights, amid disputes over the breach's scale and ongoing investigations.

Following the December 29 announcement of compensation vouchers for 33.7 million potentially affected users, Coupang interim CEO Harold Rogers faced questions at a Seoul parliamentary hearing on December 31. Responding to Democratic Party Rep. Hwang Jung-a, Rogers stated, "There are no conditions in those vouchers, and there will not be any conditions in those vouchers." He added that the plan would not mitigate potential damages in U.S. lawsuits.

The hearing highlighted ongoing controversy: Coupang maintains forensic evidence points to a former employee, with data from only about 3,000 accounts saved and deleted, while Science Minister Bae Kyung-hoon reaffirmed the breach impacted over 33 million users, accusing Coupang of "malicious intent" in downplaying the damage via unilateral assessments. A joint public-private probe remains inconclusive.

Personal Information Protection Commission head Song Kyung-hee stressed the need for victim-focused remedies and a stronger legal basis for collective lawsuits. Founder Kim Bom-suk's apology preceded the compensation reveal, but criticism persists over response delays and voucher usability (only 5,000 won applicable to the main platform).

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South Korea's data protection regulator on Thursday fined e-commerce company Coupang a record 624.7 billion won over privacy violations, including a massive data breach that affected more than 37 million users.

U.S.-listed e-commerce giant Coupang swung to a net loss in the first quarter amid fallout from a massive customer data breach in South Korea. The company posted a $266 million deficit for January-March, compared with a $114 million profit a year earlier. Founder and Chairman Bom Kim said one-time vouchers and temporary inefficiencies from weaker demand were key factors.

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