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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Coupang is facing mounting legal risks after being hit with a record 624.9 billion won ($470 million) in fines and penalties over a personal data breach, with large-scale damages lawsuits by affected users expected to accelerate.
According to industry sources on June 12, the Personal Information Protection Commission imposed the sanctions on Coupang and its affiliate Coupang Fulfillment Services, marking the largest penalty ever issued by the regulator.
The decision comes about seven months after the data breach was disclosed late last year. In the meantime, a growing number of victims have joined collective lawsuits seeking compensation. Online communities recruiting plaintiffs reportedly attracted around 650,000 members, with actual participants estimated to number in the hundreds of thousands nationwide.
Law firms representing the plaintiffs are said to be seeking damages of 100,000 to 500,000 won per person. Based on participation levels, total claims are estimated to range from hundreds of billions of won to over 1 trillion won, with the potential to increase further as more victims join or raise their claims following the regulator’s ruling.
Some civil cases have already begun initial hearings. Coupang’s legal representatives previously argued that proceedings should be delayed pending the outcome of the regulator’s investigation and potential appeals.
With the regulator’s decision now finalized, Coupang plans to challenge the penalties in court. The company said it expects the facts to be clarified through legal procedures after receiving the official resolution.
While Coupang has apologized for the breach, legal disputes are likely to center on how the fines were calculated. The company has expressed regret that its preemptive measures to prevent secondary damage and its explanations were not sufficiently reflected in the regulator’s decision.
Even if Coupang proceeds with an administrative lawsuit to contest the penalties, civil lawsuits are expected to continue in parallel, as such appeals typically take years to reach a final Supreme Court ruling.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
