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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, June 12 — Coupang said it will pursue legal action after South Korea’s Personal Information Protection Commission imposed a record 624.6 billion won ($460 million) fine over a massive data breach affecting some 37.5 million users.
In a statement released on June 11, Coupang said it “deeply regrets” the incident and acknowledged responsibility, pledging to strengthen its data protection policies and restore customer trust.
However, the company expressed concern that its proactive measures to prevent secondary damage and key factual explanations were not fully reflected in the regulator’s decision, adding that it expects the facts to be clarified through legal procedures after receiving the official ruling.
The fine is expected to significantly impact Coupang’s financial performance, as it must be reflected in the current quarter under accounting rules, making a second-quarter operating loss likely.
Coupang had already posted an operating loss of 354.5 billion won in the first quarter after issuing compensation in the form of shopping credits worth 1.6 trillion won related to the data breach. A second consecutive quarterly loss could push the company into a full-year operating deficit.
The financial strain may also affect Coupang’s aggressive investment plans, including more than 3 trillion won in logistics infrastructure aimed at expanding its nationwide “Rocket Delivery” service. The company is currently building distribution centers across the country, but further investment could be scaled back if profitability deteriorates.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
