Coupang Plans Legal Action Following Record Fine for Data Breach

Coupang, which has been hit with a record fine by the Personal Information Protection Commission (PIPC), has indicated plans for legal action. Following a lawsuit against the Fair Trade Commission (FTC) regarding its designation as a single entity, Coupang is now preparing for a legal battle with the PIPC, suggesting a prolonged conflict with government regulatory agencies.
 
In a statement on June 11, Coupang expressed regret that its proactive measures to prevent secondary damage from last year's data breach and its clear explanations were not adequately reflected in the PIPC's decision. The company stated, "We hope that the facts will be clarified through legal procedures after receiving the official resolution."
 
Coupang also apologized for causing concern to customers and the public due to the data breach, stating, "We will strengthen our personal information protection framework and work diligently to regain customer trust."
 
In response to the PIPC's criticism that it failed to properly manage advertising partners that posted misleading ads, Coupang countered that it operates legally and protects customer data using the same partnership model as other global companies.
 
On June 10, the PIPC announced at a full meeting held at the Government Seoul Building that it would impose a total fine of 624.7 billion won on Coupang for leaking the personal information of 37.5 million users and unlawfully collecting members' online activity records without legal grounds. This fine is the largest ever imposed for a single data breach incident.
 
Industry experts believe that this issue will significantly impact Coupang's core business operations, as the company faces multiple regulatory challenges. Coupang is currently engaged in a lawsuit against the FTC regarding the cancellation of the designation of its chairman, Kim Beom-seok, as the effective controller of the Coupang Group. The FTC has designated him as a single entity, but Coupang argues that this designation is unjust given the establishment of a professional management system.
 
With the addition of the PIPC fine, Coupang is now in a position to respond legally to both the FTC and the PIPC simultaneously. Reports indicate that the company is feeling considerable pressure from the record fine imposed.
 
An industry insider noted, "There are conflicting views on whether the PIPC's explanation reflects the seriousness of the violations or if the penalties are excessive compared to the scale of the breach. Ultimately, how the court interprets the criteria for calculating fines and the responsibilities of platform operators regarding personal information protection will shape the future regulatory landscape for the industry."