Coupang Announces $1 Billion Compensation After Massive Data Breach, Faces Scrutiny and Criticism

December 29, 2025
Coupang Announces $1 Billion Compensation After Massive Data Breach, Faces Scrutiny and Criticism
  • Investigators, led by the Seoul Metropolitan Police Agency, suspect an insider breach, with parliamentary scrutiny underway and founder Kim Bom facing criticism for not attending hearings.

  • In broader tech news, Thierry Breton's first interview after US sanctions and the public release of Nokia's archived mobile design plans were noted.

  • Lawmakers and consumer groups criticized the plan as voucher-based and undervaluing the breach, arguing it may primarily serve as a business move rather than genuine restitution.

  • Coupang unveiled a compensation package totaling about 1.69 trillion won (roughly €1 billion) to 33.7 million account holders after a data breach that exposed names, emails, phone numbers, shipping addresses and order histories.

  • The breach began in June 2025 and went undetected until November 18, 2025, with payment details and login credentials reportedly not compromised.

  • Coupang’s compensation plan and related developments were framed within the coverage of the incident, including ongoing investigations and regulatory attention.

  • Legal implications include South Korea’s Personal Information Protection Act enforcement, a U.S. class-action over misrepresentation of cybersecurity and delayed disclosure, and potential broader global exposure.

  • Interim CEO Harold Rogers framed the move as a responsible step to restore trust, promising to fulfill duties and apologize to customers.

  • Rogers reiterated the company’s commitment to customer-centricity and rebuilding confidence following the breach.

  • The breach affected reputation, with some customers migrating to competitors and mixed social reactions, though initial stock movement reflected a partial confidence rebound.

  • Coupang pledged cybersecurity upgrades, stricter internal access controls, enhanced employee monitoring, and training investments, with founder Kim Bom agreeing to cooperate with authorities.

  • The compensation announcement followed the breach disclosure by more than a month.

Summary based on 5 sources


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