Coupang announces $1.18 billion compensation to South Korean users for data leak

SEOUL, – South Korean e-commerce company Coupang announced on Monday that it has agreed to compensation worth 1.69 trillion won to 33.7 million account holders over a massive data leak that triggered a backlash from users and regulators.

Coupang said customers will receive company coupons worth 50,000 won each.

The plan comes a day after Coupang founder Kim Bom made her first public apology for last month’s data breach and vowed to step up compensation measures. However, Kim refused to attend parliamentary sessions scheduled for Tuesday and Wednesday, citing previous commitments.

However, criticism has increased over Coupang’s decision to provide compensation in the form of vouchers that can only be used on its own services and platforms.

Choi Min-hee, a ruling Democratic Party lawmaker and chairman of the National Assembly’s Science, ICT, Broadcasting and Communications committee, criticized the company for offering coupons tied to its less popular services, saying in a Facebook post that Coupang “bundles coupons for services that no one uses.”

He added that Coupang is trying to turn the crisis into a business opportunity.

Consumer advocacy group Korea National Council of Consumer Organizations said Coupang’s plan ridiculed consumers and downplayed the seriousness of the data breach, describing it as a marketing tool designed to encourage additional purchases rather than a sign of compensation.

Asked about public criticism of the compensation plan, Coupang said he had no further comment.

South Korea’s parliament plans to hold two-day hearings on Coupang starting Tuesday.

This article was generated from an automated news agency feed without modifications to the text.