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Coupang Makes Billion-Dollar Apology After Record Data Breach
PYMNTS.com· 2025-12-29 13:44
Core Insights - Coupang is set to compensate customers affected by a significant data breach, offering vouchers to its 33.7 million customers whose personal information was compromised [2][3] - The total compensation plan amounts to 1.685 trillion won, approximately $1.1 billion, reflecting the company's acknowledgment of responsibility for the incident [3] Compensation Details - Each affected customer will receive vouchers totaling up to 55,000 won ($38), which includes 5,000 won for general products, 5,000 won for food delivery, 20,000 won for travel products, and 20,000 won for the beauty platform R.LUX [3] - The company expressed a commitment to customer-centric principles and aims to rebuild trust following the breach [3] Data Breach Overview - The data breach, identified on November 18, is noted as the largest in South Korea, affecting customers' names, email addresses, phone numbers, shipping addresses, and some order histories, but not login or payment information [4] - An investigation revealed that a former employee may have obtained the data, which was retained from 3,000 accounts but not publicly disclosed [5][6] Legal Implications - A class action lawsuit has been filed against Coupang by a group of investors, alleging violations of securities laws related to the breach, including misleading statements about data security practices and failure to disclose the breach promptly [7]