South Korea's labor minister rebukes Coupang over data breach

South Korea’s labor minister Kim Young-hoon criticized Coupang’s handling of a large-scale data leak, questioning whether the company can address its issues.

Coupang, an online retailer based in South Korea, faced scrutiny in a parliamentary hearing after it reported a breach affecting 33.7 million customers.

The company proposed compensating affected users with vouchers, but lawmakers raised concerns that only 5,000 won could be used on Coupang, while the remaining 45,000 won was limited to other platforms, including a luxury goods site.

Coupang later said only 3,000 accounts were impacted and that the data was deleted, citing internal findings.

Kim linked the incident to what he called a pattern of alleged cover-ups at Coupang, referencing previous industrial accidents involving the company.

🔗 Source: Yonhap

🧠 Food for thought

Implications, context, and why it matters.

Coupang needs independent investigators to regain trust

Coupang claims only 3,000 records were kept and later deleted, yet it said 33.7 million accounts were affected 1. No independent audit has verified the deletion or checked whether the data was copied or shared, and authorities say an official investigation is ongoing 1.
South Korea’s Personal Information Protection Commission (PIPC) and the Korea Internet & Security Agency (KISA) were notified 2. These bodies have not released findings on exposed data types or retention periods or penalties. Lawmakers have flagged alleged cover-ups at the company, and Science Minister Bae called the 3,000-account claim ‘extremely reckless’.

Rivals can gain if trust erodes

Coupang had the most monthly visits among South Korean marketplaces as of May 2025 3. The breach sparked public outrage and a consumer withdrawal campaign led by the Korea National Council of Consumer Organizations, an umbrella group for consumer advocates 4.
Naver Shopping, the e-commerce arm of Naver, cut the GMV (gross merchandise value meaning the total value of goods sold) gap with Coupang from 55% in 2020 to 17% in 2025 5. It is adding AI-driven personalized shopping plus influencer-led commerce to draw trust-sensitive buyers. Merchants can shift ad spend to Naver’s Smart Store ecosystem (Naver’s marketplace for small and midsize sellers) 5 or AliExpress, a cross-border marketplace run by China’s Alibaba Group that offered zero commissions to Korean companies through March 2025 6, while adtech providers prioritize ad inventory (available ad placements) plus targeting deals with these platforms.