[비즈한국] The Democratic Party of Korea plans to hold a joint hearing regarding Coupang on the 30th and 31st of this month. When asked about potential counter-measures if Bom Kim, founder of Coupang and board chair of its parent company Coupang Inc., fails to appear, Rep. Kim Hyun of the Democratic Party, the ranking member of the Science, ICT, Broadcasting, and Communications Committee, expressed a strong resolve, stating, "Additional charges are possible," and added, "In the next stage, we will ensure through a parliamentary investigation that Chairman Bom Kim comes to Korea to provide responsible answers and take follow-up measures."
The government is also stepping up in alignment with this. As a high-intensity joint government investigation into Coupang for its personal data leak is underway, Fair Trade Commission (KFTC) Chairperson Joo Byung-ki appeared on a broadcast and hinted at the possibility of a business suspension for the company. With President Lee Jae-myung consistently criticizing Coupang, the legal community is paying close attention to the feasibility of the FTC's mention of a "business suspension." While the FTC has previously imposed suspension orders on small-scale online businesses, it has never done so to an e-commerce platform with a massive user base.
KFTC Chairperson's 'Deliberate Remarks'
This is the first time KFTC Chairperson Joo Byung-ki has personally stepped forward to suggest a business suspension following the Coupang data leak incident. Appearing on KBS News on the 19th, Chairperson Joo stated, "We are keeping the possibility (of a business suspension) open," while adding, "(After the investigation) we will need to determine whether to impose a business suspension or a fine."
The remarks are seen as deliberate, coming at a time when political criticism is mounting over Chairman Bom Kim's absence from the National Assembly's hearing on the "Coupang personal data leak crisis" held on the 17th.
Chairperson Joo added, "We are mobilizing all available means, such as dispute mediation and litigation support, to provide relief for consumer damages," and noted, "If Coupang fails to take appropriate recovery measures when consumer property damage occurs, we can order a business suspension."
However, the FTC has never imposed a business suspension on a major e-commerce company used by a vast number of users, even though it has done so for small-scale internet businesses. If a business suspension were to be issued against Coupang, the inconvenience to users would be immediate and significant, and damage to affiliated vendors, self-employed business owners, and delivery platform workers would be inevitable.
Coupang remains silent with no follow-up measures for over a month
For over a month since becoming aware of the data leak, Coupang has not presented any concrete plans for compensation or measures to strengthen user protection.
The legal community explains that for the FTC to actually impose a business suspension, the joint public-private investigation must prove that the data leak has caused—or carries the risk of causing—actual financial loss to consumers. Experts also agree that Coupang's failure to take "post-incident measures" must be demonstrated. If the government issues a corrective order to restore consumer damage and Coupang ignores it, or if further similar data breaches occur, a business suspension could become a viable option.
For this reason, analysts suggest Chairperson Joo's remarks are more of a "warning" at this stage. A partner attorney at a major law firm said, "A personal data leak is clearly a corporate fault, but if it is an individual misconduct by an employee, as in this case, it is important to see how the company responded afterward and what efforts it made to restore consumer losses. If they push for a business suspension solely based on Chairman Bom Kim's irresponsible response, it would inevitably lead to a court battle, which is highly likely to result in a conclusion favorable to Coupang."
Chairperson Joo also left the possibility of a 'fine' open. "If a business suspension would cause damage to consumers, we could impose a fine in its place," he remarked, implying that they might opt for a massive monetary fine instead of a total suspension.
President Lee Jae-myung has also ordered strong measures against companies engaged in illegal activities. During a briefing on the Fair Trade Commission's work last week, President Lee pointed out, "If companies see others suffering and think, 'We would be ruined if we did that,' would they repeat such acts?"
A former judge-turned-attorney predicted, "While I get the feeling that Coupang's attitude is provoking the government, I don't think Coupang will simply accept the level of fines or suspension the government wants. Even if a massive fine is imposed, if Coupang deems it 'excessive' compared to past precedents, they will likely appeal and fight it in court, which would delay the final resolution of this case for years."