On June 11, the Financial Times reported that the South Korean government levied a fine of 624.6 billion won, approximately $409 million, against Coupang due to a significant data breach. The report noted that this incident could escalate diplomatic tensions with the United States. Although Coupang is registered in Delaware, the majority of its revenue comes from South Korea.
The commission determined that Coupang neglected to manage access rights and authentication keys, allowing former employees to access customer information for several months after their departure. The fine includes 423.6 billion won related to the data breach and 201 billion won for unauthorized use of customer information.
Concerns about trade tensions stem from Coupang's governance structure and previous complaints from U.S. investors. These investors had previously argued that South Korean regulations were discriminatory under Section 301 of the U.S. Trade Act but later withdrew their petition.
Michelle Park Steel, the U.S. ambassador nominee to South Korea, also referenced the Coupang issue as a key economic concern during her Senate confirmation hearing last month. She stated, "American companies operating in Korea should not face discrimination," citing Coupang as an example. She pledged to ensure that U.S. companies are treated fairly if confirmed.
Coupang expressed regret over the commission's decision and stated it would clarify the facts through legal procedures. South Korean authorities maintain that the sanctions are based on the investigation's findings and are separate from U.S.-Korea trade negotiations.
* This article has been translated by AI.
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