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Protest stickers condemning Coupang posted at Coupang headquarters in Songpa District, Seoul, on December 29. (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] The Financial Supervisory Service (FSS) will begin a full-scale inspection of Coupang’s electronic finance subsidiaries, including Coupang Pay and Coupang Financial, amid concerns over compliance with financial regulations following a massive personal data breach and allegations of excessive interest gains from marketplace sellers.
According to financial authorities on January 11, the FSS completed a six-week on-site review of Coupang Pay and will formally commence inspections on January 12. Given Coupang’s “one-ID, one-click” system—where users are automatically enrolled in Coupang Pay upon signing up for Coupang—the inspection will examine whether the data breach at Coupang led to exposure of payment information.
During the on-site review, the FSS found that Coupang Pay did not fully cooperate with document requests, limiting the authorities’ ability to verify details. Unlike routine reviews, the formal inspection allows the FSS to compel the submission of documents under the Electronic Financial Transactions Act and impose penalties for noncompliance or obstruction.
The inspection will focus on how information was transmitted and used between Coupang and Coupang Pay. While Coupang operates the online marketplace and Coupang Pay handles electronic payments, each entity is subject to different legal restrictions regarding the handling of data. The FSS will closely examine potential violations of the Credit Information Act and the Electronic Financial Transactions Act in the sharing and utilization of customer information.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
