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🇰🇷 South Korea /Crime & Justice

S. Korea imposes record $450M fine on Coupang; Ministry to brief U.S.

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • South Korea's Personal Information Protection Commission fined Coupang and its affiliates $624.68 billion won for massive data breaches and illegal data collection.
  • The Ministry of Foreign Affairs stated it will explain the decision to the U.S. government, given Coupang's lobbying efforts.
  • The fine is the largest ever imposed in South Korea, highlighting concerns over data privacy and cross-border data flows.

South Korea's Personal Information Protection Commission (PIPC) has imposed a record-breaking fine of 624.68 billion won (approximately $450 million USD) on e-commerce giant Coupang and its affiliates. The penalty stems from a massive personal data breach affecting over 37.55 million users and the illegal collection of online activity records from 1.17 million users without proper legal grounds.

We plan to explain the relevant content to the U.S. government.

— South Korean Ministry of Foreign Affairs officialResponding to questions from reporters about the PIPC's decision on Coupang.

In response to the significant penalty, South Korea's Ministry of Foreign Affairs announced it plans to communicate the details of the PIPC's decision to the U.S. government. This move comes as Coupang, a U.S.-based company, has reportedly engaged in extensive lobbying efforts with U.S. officials and lawmakers to pressure the South Korean government over the matter.

A foreign ministry official stated that the decision aligns with South Korea's commitment to non-discriminatory policies toward U.S. digital companies, a point also included in the joint fact sheet agreed upon by the leaders of both nations. The official emphasized that the investigation was conducted fairly under domestic law, providing Coupang ample opportunity to present its case.

We will maintain a non-discriminatory policy and calmly explain the Personal Information Protection Commission's decision to the U.S.

— South Korean Ministry of Foreign Affairs officialRegarding communication with the U.S. government about the Coupang fine.

The substantial fine and the diplomatic engagement highlight the growing tension surrounding data privacy regulations and their impact on international business. Reports suggest that concerns over Coupang's data handling have previously influenced bilateral negotiations, including security talks. With the U.S. presidential administration known for viewing regulations on its tech firms as trade barriers, further pressure on this issue is anticipated.

The Personal Information Protection Commission imposed a penalty commensurate with the responsibility, conducted the investigation fairly according to domestic law, and provided Coupang with ample opportunity to state its opinion.

— South Korean Ministry of Foreign Affairs officialExplaining the fairness of the investigation process.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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