Coupang to Compensate Victims of Data Breach with 100,000 Won Each

The Consumer Dispute Mediation Committee has ordered Coupang to compensate victims of a data breach 100,000 won each. This marks the first instance where Coupang has been held liable for damages related to a data leak.

On July 31, the committee announced that Coupang must pay 100,000 won per person in cash or Coupang cash, following a collective dispute resolution involving 50 consumers.

The committee cited the breach of personal information, including members' names, emails, addresses, shared entrance codes, and order histories, as a significant factor in their decision. They noted that hackers had accessed personal data over an extended period and had sent emails to some customers regarding the breach, indicating a real risk of misuse.

While Coupang claimed to have retrieved the devices used in the breach to prevent further damage, the committee concluded that it could not definitively rule out the possibility of additional leaks. They also recognized the mental distress experienced by consumers due to the data breach, affirming the need for compensation.

The compensation amount was set at 100,000 won, considering the typical damages awarded in large-scale data breach cases and the sensitivity of the leaked information. The committee also took into account that Coupang did not provide actual usage data for its proposed compensation plan.

To increase acceptance of the mediation, the committee agreed to allow applicants to receive their compensation in Coupang cash instead of cash if they preferred.

Coupang must notify the committee of its acceptance of the mediation proposal within 15 days of receiving the decision. If there is no separate indication, it will be considered accepted, and if both parties agree to the mediation, it will have the same effect as a court settlement.

If Coupang accepts the decision, the committee will proceed with a compensation plan to ensure that victims who did not participate in the mediation receive the same compensation.

In November of last year, Coupang experienced a security incident in which approximately 37.56 million personal records were leaked. Last month, the government imposed a record fine of 624.68 billion won and an additional penalty of 1.68 million won on Coupang.