A class action lawsuit in the United States regarding a major data breach at Coupang has sparked a dispute over whether the U.S. parent company and Chairman Kim Beom-seok can be held liable. Coupang argues that the incident occurred within its South Korean subsidiary, asserting that the lawsuit against the U.S. parent company and Kim is misplaced.
According to court records from the U.S. Eastern District Court of New York, Coupang Inc. and Chairman Kim Beom-seok indicated earlier this month that they would seek to have the lawsuit dismissed.
Coupang contends that the data breach originated from its South Korean subsidiary, Coupang Corp., which is a separate entity from Coupang Inc. They emphasized that the plaintiffs have not provided specific evidence showing that Coupang Inc. or Kim were directly involved in security decisions related to the incident.
Most key evidence and witnesses related to the case are located in South Korea, and there are ongoing related lawsuits in the country, leading Coupang to argue that there is no reason for the case to be tried in the U.S. They also accused the plaintiffs of engaging in 'forum shopping' by choosing a court that they believe would be favorable to them.
The plaintiffs countered that the lawsuit should not be dismissed before confirming the role of the U.S. parent company. They argued that Coupang Inc. has presented Coupang in South Korea as a core business entity to investors, making it inconsistent to claim in court that it is a separate company.
They specifically called for a discovery process to verify details regarding data protection, information security policies, incident response procedures, decision-makers, and the reporting and oversight system between the parent company and the South Korean subsidiary.
Discovery is a pre-trial procedure in U.S. litigation where parties obtain evidence from each other, including documents, materials, and witnesses.
The court has decided not to accept Coupang's request to skip the preliminary hearing and will hold a session on September 1 with both parties present. The court has yet to determine whether it has jurisdiction over the case and whether the lawsuit against Coupang Inc. and Kim will proceed.
This lawsuit was filed in February by victims of the data breach against Coupang Inc. and Chairman Kim in the U.S. Eastern District Court of New York.
Currently, the key issues revolve around whether the case can be tried in the U.S. and whether the U.S. parent company and Kim can be named as defendants, rather than the liability for damages resulting from the data breach.
* This article has been translated by AI.
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