South Korean e-commerce giant Coupang, often dubbed the “Amazon of Korea,” has announced a $1.17 billion compensation plan following a massive data breach that exposed sensitive information of 34 million users. The company pledged to issue purchase vouchers worth 50,000 won (approximately $38) to each affected customer, including those who closed their accounts after the incident.
The breach came to light on November 18 after a customer reported suspicious activity. Coupang initially downplayed the event as affecting only 4,500 users, but quickly revised the number to tens of millions. Investigators later revealed that a former Coupang software developer—believed to be a Chinese national—had retained an internal authentication key after leaving the company, allowing months-long unauthorized access to customer data.
Information compromised included names, phone numbers, and even residential keycodes. The suspect accessed Coupang systems using overseas servers, disguising his activity to appear as if he were still employed by the company. The infiltration reportedly began on June 24 and remained undetected until November.
In response to public outcry, Coupang’s interim CEO Harold Rogers called the compensation “a responsible measure” and promised the company would fulfill its obligations “to the end.” Users can begin checking their eligibility for vouchers starting January 15.
Coupang founder Kim Bom also issued a public apology, admitting that his delayed response had been a mistake. “In retrospect, this was a poor judgment,” he said, explaining that he waited to confirm the full facts before speaking out.
The fallout has already led to the resignation of Coupang CEO Park Dae-jun and heightened scrutiny of the company’s cybersecurity protocols. Coupang claims the leaked data was recovered through cooperation with government agencies and was not sold or distributed.
The scandal has also triggered diplomatic tensions. U.S. trade officials canceled a scheduled meeting with South Korean counterparts, citing harassment of American companies abroad, a veiled reference to the treatment of Coupang. The Office of the United States Trade Representative issued a warning against countries targeting U.S.-based firms, escalating pressure on Seoul.
