DistantNews
Support us
South Korea fines e-commerce giant Coupang record $408 million over data leak
🇸🇬 Singapore /Crime & Justice

South Korea fines e-commerce giant Coupang record $408 million over data leak

From CNA · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Official statement Outcome reported
  • South Korea has fined e-commerce giant Coupang a record $408 million for a data leak exposing over 30 million customers.
  • The fine follows an investigation into the US-incorporated company for violating safety obligations and unlawfully collecting user data.
  • The leak and investigation have caused friction between Seoul and Washington, with US lawmakers raising concerns about "discriminatory regulatory actions."

South Korea has levied a record fine of US$408 million on e-commerce giant Coupang, stemming from a data leak that compromised the personal information of over 30 million customers. The penalty marks the culmination of a months-long investigation into the country's largest online retailer, which is incorporated in the United States.

We have decided to impose a total of 624.68 billion won in fines ... on Coupang for violating safety obligations and collecting personal data without legal grounds.

— Personal Information Protection CommissionAnnouncing the record fine against Coupang.

The Personal Information Protection Commission stated that Coupang violated safety obligations and collected personal data without legal grounds, resulting in the imposition of fines totaling 624.68 billion won. The commission's probe revealed "inadequate basic safeguards," including poor management of authentication keys and lax access controls, which led to the exposure of data belonging to approximately 37.5 million users. Furthermore, Coupang was found to have unlawfully collected online activity records of about 11.17 million users from third-party websites and apps, storing this data in a way that allowed for individual identification.

Inadequate basic safeguards, including poor management of authentication signing keys and lax access controls

— Personal Information Protection CommissionExplaining the cause of the data leak.

This investigation has become a point of friction between Seoul and Washington. In April, nearly 100 South Korean lawmakers sent a joint letter expressing concerns over "undue pressure" from US politicians. These US politicians, primarily Republicans, accused Seoul of enacting "discriminatory regulatory actions" against American businesses.

unlawfully collected the online activity records of about 11.17 million users on third-party websites and apps, and stored them in a database in a state that allowed individual identification

— Personal Information Protection CommissionDetailing another violation found during the investigation.

The dispute has reportedly impacted high-level security talks between the two allies, with reports suggesting the US warned it might halt such discussions unless the legal protections for Coupang chairman Kim Bom, an American citizen also known as Kim Bom-suk, were guaranteed.

undue pressure

— South Korean lawmakersDescribing concerns over US political influence on the investigation.
DistantNews Editorial

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

More Stories

From Our Blog