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🇰🇷 South Korea /Crime & Justice

Coupang calls itself a US company when lobbying, but a Korean platform in data-breach lawsuit

From Hankyoreh · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

News From a news agency In the courts
  • A US federal court held an initial hearing on whether it has jurisdiction over a class action tied to Coupang’s large-scale customer data breach.
  • Customers’ lawyers argue that Coupang Inc., a Delaware-incorporated company listed in New York, influenced its Korean subsidiary and should face the case in the United States.
  • Coupang’s lawyers seek dismissal, saying the alleged harm occurred in South Korea and involved a separate Korean legal entity; the judge requested additional filings by Oct. 6.

Coupang is presenting itself as an American company when it lobbies US officials, but as a Korean platform now that it faces a US data-breach lawsuit. That contradiction shaped the first hearing in a class action over the exposure of customer information.

Why should this case be heard in the Eastern District of New York?

— Ann DonnellyThe judge questioned the connection between the court and the alleged breach.

At a preliminary hearing in the US District Court for the Eastern District of New York, both sides argued over whether the court was the proper venue. Judge Ann Donnelly repeatedly asked why the case belonged in her court and why the plaintiffs had brought it there rather than in South Korea. The hearing was held to identify the issues and plan the next stage before a full trial.

The Korean law firm Daeryun and its US partner SJKP represent Coupang customers seeking $5 million in damages from Coupang and executive chairman Bom Kim. They named two Coupang customers living in the court’s jurisdiction as lead plaintiffs, and about 7,800 people have so far indicated they want to participate. The plaintiffs say Coupang breached its duties to protect personal information and exercise due care.

Why was this case brought here rather than in a Korean court?

— Ann DonnellyThe judge pressed the plaintiffs over their choice of venue.

The case concerns last November’s breach, in which the names, phone numbers, delivery addresses and shared-entry passwords of 33.7 million Coupang users were exposed. Coupang’s lawyers from Kirkland & Ellis argue that the case is improperly directed at US parent Coupang Inc. for events that occurred in South Korea. Coupang Inc. is a Delaware-incorporated holding company, they said, while Korean Coupang is a separate legal entity and an e-commerce platform operating in Korea for Korean customers. Trying the case in New York, they argued, would waste time and resources.

An e-commerce platform operating in Korea for Korean people.

— Coupang’s lawyersThe defense characterized the Korean business as separate from the US parent while seeking dismissal.

The customers’ lawyers counter that Coupang Inc. is a US company listed on the New York Stock Exchange and that its leadership influences the Korean operation. They also cited the parent company’s report of the subsidiary’s data breach to the US Securities and Exchange Commission. Judge Donnelly asked for additional written submissions by Oct. 6 and is expected to decide whether further proceedings and a schedule will follow. Because US law allows punitive damages, the case could expose Coupang to heavier liability than in South Korea, but it could end without a ruling on the company’s duty of care if the jurisdiction issue is not overcome.

Trying the case here would be a waste of time and resources.

— Coupang’s lawyersThe defense argued that New York was an inappropriate venue for a Korea-based dispute.
About this summary

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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