Coupang rejects consumer mediation for massive data breach

Coupang has rejected a mediation proposal from the Korea Consumer Agency’s Consumer Dispute Mediation Committee regarding a massive personal information leak. The committee had recommended that the e-commerce giant pay 100,000 KRW per person to 50 applicants who sought collective dispute mediation following a breach involving approximately 37.56 million pieces of data.

Coupang stated that after careful review, it determined the proposal was difficult to accept, citing its proactive efforts to strengthen privacy measures and the fact that no secondary damage has been confirmed. The company previously provided voluntary compensation in the form of 5,000 KRW shopping vouchers to affected users.

Because the mediation was rejected, the applicants must now pursue separate civil lawsuits to seek damages. Civil society groups, including the ‘Safe Coupang Joint Action,’ have criticized the decision, arguing that Coupang is shifting the burden of responsibility onto victims. These groups are calling for the enactment of a class-action lawsuit law to address such corporate accountability issues.