Coupang Regrets Record Fine Over Data Breach and Unauthorized Data Collection

By Kim Eun-jung

SEOUL, June 11 (Yonhap) -- U.S.-listed e-commerce giant Coupang on Wednesday expressed regret over a record fine imposed by South Korea's data protection regulator in connection with a major data breach and the unauthorized collection of users' online activity data.

Coupang said it plans to "clarify the facts through legal procedures" after the Personal Information Protection Commission imposed a combined 624.7 billion-won (US$410 million) penalty. The amount includes 423.58 billion won related to a data breach that affected more than 37 million users and 201.16 billion won for the unauthorized collection of online user activity data.

"The commission's conclusion did not sufficiently reflect the company's proactive measures taken to prevent secondary damage following last year's data leak incident, nor its explanations based on a clear understanding of the facts," the Korean arm of Coupang said in a statement.

The punitive measures came more than six months after Coupang reported a large-scale data breach last November of personal information of South Korean users, including their names, phone numbers and delivery details.

The penalty far exceeds the regulator's previous record fine of 134.8 billion won imposed on SK Telecom Co. last August over a major data leak, making it the largest penalty ever levied in South Korea for a single data breach case.

Coupang also rejected the commission's claim that it failed to adequately oversee its advertising partners. The company said it uses the same affiliate model as other global companies and operates it in compliance with relevant laws while safeguarding customer data.