Post by : Meena Ariff

South Korean e-commerce giant Coupang has unveiled a compensation package worth 1.69 trillion won (about $1.18 billion) after a massive data breach that impacted millions of users across its platform. Under the plan, the company will issue vouchers worth 50,000 won to each of the 33.7 million affected account holders, a move that has sparked intense discussion and criticism in political circles and among consumer advocacy groups.

The compensation announcement came just a day after Coupang founder Kim Beom issued his first public apology over last month’s data leak. While he promised to speed up compensation efforts and address user concerns, Kim declined to appear before parliamentary hearings scheduled for this week, citing prior commitments. His decision not to attend has further drawn criticism from lawmakers, who are demanding accountability from top company leadership.

Opposition has grown over Coupang’s choice to offer compensation in the form of vouchers that can only be used on its own platforms and services. Lawmakers and consumer groups argue that this approach restricts consumer freedom and effectively turns a serious breach of personal data into a commercial opportunity for the company.

Choi Min-hee, a lawmaker from the ruling Democratic Party and chair of the National Assembly’s Science, ICT, Broadcasting and Communication Committee, openly criticised the plan. She said the vouchers are linked to services that many customers rarely use, describing the compensation strategy as misleading and self-serving. According to her, Coupang appears to be attempting to convert public outrage into additional business rather than focusing on meaningful restitution.

Consumer advocacy organisations have echoed these concerns, saying the compensation plan downplays the severity of the data breach. They argue that issuing vouchers encourages further spending on the same platform responsible for the security lapse, instead of genuinely compensating users for the risk and inconvenience caused by the exposure of their personal information.

When asked to respond to the mounting criticism, Coupang said it had no additional comment beyond its initial announcement. Meanwhile, South Korea’s parliament is set to hold two days of hearings starting Tuesday to examine the data breach, Coupang’s handling of the incident, and wider issues related to data protection and corporate accountability.

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