SEOUL, February 05 (AJP) -South Korea’s leading e-commerce platform Coupang said Thursday that the personal data of an additional 165,000 users had been leaked, deepening fallout from a massive breach disclosed last November and intensifying regulatory and political scrutiny.
The company said the newly identified cases were part of the original breach, which exposed the personal information of more than 33 million users, and did not involve payment details, login credentials, emails or order histories. The leaked data included names, phone numbers and addresses.
Coupang said it had notified affected users in line with government guidance and found no signs of secondary damage so far.
The disclosure comes as a government-led probe drags on, with authorities maintaining pressure on the company despite complaints from the United States that Seoul’s response has been “excessive” toward a U.S.-based, publicly traded technology firm. Coupang’s founder has continued to resist calls for an expanded independent investigation, further complicating relations with regulators.
The prolonged probe and lingering uncertainty are taking a visible toll on the company’s business.
According to market tracker Wiseapp.Retail, Coupang’s monthly active users fell to 33 million in January, down about one million, or 3.2 percent, from December — a decline nearly ten times larger than the previous month’s drop. Industry analysts say the figures reflect eroding consumer confidence following the breach.
Signs of strain are also emerging across Coupang’s logistics network. Industry sources said more than 5,000 workers at Coupang Fulfillment Services applied for voluntary time off between early December and mid-January as delivery volumes weakened.
Small and mid-sized merchants dependent on the platform are feeling mounting pressure. The Korea Federation of Micro Enterprises said it has begun collecting damage claims from sellers, with many reporting average sales declines of 30 percent to 40 percent since the breach.
As users drift away, rival platforms are gaining ground. Data from IGAWorks’ Mobile Index showed that new installations of Naver’s shopping app surged to 935,507 in January, up more than 147,000 from December — the highest level since last June. By contrast, Coupang’s app installs fell to 467,641, down nearly 60,000 from the previous month.
Industry watchers say the shift reflects growing competition as domestic platforms ramp up discounts, faster delivery and partnership benefits to lure disaffected customers.
Meanwhile, political and regulatory pressure on Coupang is widening beyond the data breach.
The government and ruling Democratic Party are considering easing restrictions on large retailers’ overnight operations, allowing them to process online orders and offer early-morning delivery. The move, expected to be finalized at a high-level party-government meeting on Feb. 8, would effectively allow major chains such as E-Mart and Lotte Mart to compete more directly with e-commerce platforms.
Currently, large stores are barred from operating between midnight and 10 a.m., preventing them from running late-night fulfillment operations. Under the proposed amendment to the Distribution Industry Development Act, online sales would be exempt from the restriction.
Lawmakers say the change is part of broader efforts to support small businesses and correct what they describe as an “uneven playing field” favoring online-only operators. Critics, however, argue the measure amounts to indirect pressure on Coupang at a time when it is already struggling to stabilize its user base.
Retail executives view the shift as a potential turning point. By turning hundreds of physical stores into 24-hour logistics hubs, traditional retailers could mount a serious challenge to platforms that have invested heavily in centralized fulfillment centers.
The policy debate is unfolding against the backdrop of rapid structural change in the sector. Government data show that online sales accounted for 59 percent of Korea’s retail market last year, up from 24.2 percent in 2016, while the share of large discount stores fell below 10 percent for the first time.
For Coupang, the convergence of regulatory pressure, falling user engagement, merchant discontent and rising competition marks its most serious test in years.
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