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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The controversy surrounding Coupang, which began with a large-scale personal data breach, is rapidly escalating on multiple fronts. A series of three parliamentary hearings—criticized as “empty hearings” due to the absence of key witnesses including founder and Coupang Inc. Chairman Bom Kim—has only intensified criticism over the company’s attitude toward the issue. The situation has now led to a full-scale parliamentary investigation, with the government even suggesting the possibility of suspending Coupang’s business operations.
According to political sources on the 1st, the National Assembly, following its joint hearings on Coupang, is set to launch a formal parliamentary investigation into the matter. Unlike previous hearings, the investigation will involve both ruling and opposition parties, signaling a more aggressive approach.
The three hearings held late last year were widely criticized for failing to clarify the cause of the data breach, instead fueling broader controversy. Key witnesses, including Chairman Kim, did not appear, prompting accusations of a “hollow hearing.” Instead, Harold Rogers, interim CEO of Coupang Korea, attended and drew criticism for giving evasive answers and displaying a confrontational attitude during questioning.
As a result, the hearings expanded beyond the data breach itself to raise new allegations, including concerns over executive favoritism involving Kim Yoo-seok, the chairman’s younger brother and a vice president at the company.
Coupang also became embroiled in controversy over its so-called “self-investigation.” During the hearings, CEO Rogers described the company’s internal probe into the data breach as “a successful example of cooperation between a private company and the government.” He further claimed—on multiple occasions—that the meeting with the alleged data leaker had taken place at the direction of the South Korean government, specifically the National Intelligence Service (NIS), intensifying public backlash.
In response, the NIS denied giving any such instruction and has requested that the National Assembly file perjury charges, accusing Coupang of attempting to evade responsibility by invoking a government agency.
Meanwhile, the possibility of Chairman Kim being designated as the company’s “controlling shareholder” (same person designation) has increased. Until now, his foreign nationality had allowed him to avoid such designation, but that exemption may no longer apply. During the hearings, revelations that Vice President Kim received substantial compensation raised further doubts about whether the company truly adheres to the principle of excluding family members from management. If Chairman Kim is designated as the controlling shareholder, Coupang would become subject to stricter regulations, including rules on unfair internal transactions.
The controversy has also expanded to include working conditions at logistics centers, allegations of overwork-related deaths, excessive fees charged to sellers, and broader concerns about the company’s business practices.
Ultimately, the “empty hearings” prompted the ruling party to proceed with a long-delayed parliamentary investigation. The probe will cover a wide range of issues, including the data breach, unfair trade practices, courier business registration issues, alleged cover-ups of worker deaths, and potential tax investigations. Lawmakers have also indicated that they may consider issuing a compulsory attendance order or even imposing a travel ban on Chairman Kim if deemed necessary.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
