South Korea’s antitrust watchdog is contemplating a temporary halt to e-commerce giant Coupang’s business operations following a significant data breach. The Fair Trade Commission’s chairman, Ju Byung-gi, mentioned the possibility of a business suspension if existing measures prove inadequate in addressing consumer concerns. Coupang disclosed that a former employee accessed personal data from 33.7 million user accounts, with data from around 3,000 accounts being compromised.
The Science Ministry criticized Coupang’s internal investigation findings as biased and incomplete. It emphasized an ongoing joint inquiry involving the ministry and the Personal Information Protection Commission. Apart from the data breach, the Fair Trade Commission is investigating other aspects of Coupang’s operations, including its business practices. The commission is set to reveal its findings on allegations that Coupang shifted losses from low-priced sales to partner suppliers.
In a related development, Harold Rogers, the interim CEO of Coupang Corp., has been summoned by the police for questioning regarding the company’s alleged misconduct, including the data leak. A special task force at the Seoul Metropolitan Police Agency is coordinating Rogers’ appearance as part of the investigation into Coupang’s handling of the data breach. The summons is linked to concerns over the adequacy of Coupang’s internal investigation post the data breach.
Coupang’s internal investigation results, released on December 25, indicated that personal information from 33 million users was compromised, but data from only 3,000 accounts was retained. The Science Ministry criticized these findings, labeling them as one-sided and incomplete.
