[비즈한국] Since the Coupang personal data breach, criticism against the company has been mounting. Although Coupang announced investigation results, such as identifying the perpetrator, its relationship with the government has worsened because the announcement was made without prior consultation. Some in the business sector are even mentioning the possibility of a suspension of business operations. Coupang is scheduled to face a joint parliamentary hearing on the 30th and 31st. If the company fails to show sincerity during the hearing, the possibility of a business suspension cannot be ruled out.
Coupang stated on the 25th that it had identified the person responsible for the customer data leak. The company explained, “We have identified the leaker and confirmed that all devices used for the data breach have been recovered. According to our investigation so far, the individual only stored limited customer information from about 3,000 accounts and later deleted all of it.”
Coupang added, “The perpetrator stated that they physically destroyed a MacBook Air laptop, put it into a Coupang-branded eco-bag filled with bricks, and threw it into a nearby stream. Based on the map and description provided by the individual, divers recovered the MacBook Air from the stream. The recovered device was found inside the Coupang eco-bag filled with bricks, exactly as described, and the serial number matched the one registered to the individual’s iCloud account.”
However, doubts remain regarding Coupang’s stance. For one, the company did not disclose exactly which government agency had provided the instructions. Furthermore, while Coupang initially claimed on November 18 that personal information of about 4,500 people had been leaked, it changed its story on November 29, stating that 33.7 million users' data was compromised. On December 25, it changed its position again, claiming that “basic information for 33 million customer accounts was accessed, but only information for about 3,000 accounts was actually stored.”
Independent of the truth, the government is strongly criticizing this announcement. The reason is that Coupang unilaterally informed the public about a matter currently being investigated by a joint public-private task force. Following Coupang's announcement, the Ministry of Science and ICT (MSIT) stated, “The matter of the type, scale, and details of the data leak is currently being thoroughly investigated by the joint task force. We would like to inform you that the points claimed by Coupang have not been verified by the joint task force.”
In response, Coupang countered on the 26th, stating, “Our investigation was not an internal one, but one conducted over several weeks in close cooperation with the government on a daily basis, following their instructions. On the 23rd, at the government's request, we provided an additional briefing on the details of the investigation, including our cooperation with the authorities, and subsequently informed our customers about the progress on the 25th.”
Then, investigative agencies stepped in. While Coupang claimed it conducted the investigation based on government instructions, the investigative agencies claim they never issued any such orders. The Seoul Metropolitan Police Agency's Cyber Investigation Unit stated, “There was no form of consultation or prior coordination with Coupang.” The National Intelligence Service (NIS) also declared, “We are not in a position to give any instructions to Coupang regarding this situation, and we have not issued any.”
As the government and Coupang continue to make conflicting statements, the conflict is intensifying. The Presidential Office held a ministerial-level meeting on the 25th to develop countermeasures regarding the Coupang crisis. Additionally, it was decided to add the Foreign Affairs and Unification Committee to the parliamentary hearings scheduled for the 30th and 31st. Initially, five standing committees—Science, ICT, Broadcasting and Communications; National Policy; Land, Infrastructure and Transport; Environment and Labor; and Strategy and Finance—were set to participate. However, as suspicions of Coupang’s lobbying of the U.S. political and governmental spheres emerged, the Foreign Affairs and Unification Committee was added.
If the conflict with the government remains unresolved, there is talk of a possible business suspension in the worst-case scenario. Joo Byung-ki, Chairperson of the Fair Trade Commission (FTC), said on KBS ‘Newsline W’ on the 19th, “We are keeping the possibility of a business suspension order open.” Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon previously stated at a hearing on the 17th, in response to a question about a business suspension for Coupang, that he would “actively discuss it with the FTC and conduct on-site investigations.”
The main opposition party, the People Power Party, is also showing a negative attitude toward Coupang. In the current climate, it is difficult to find any political group that would oppose the government if it were to issue a suspension order. Park Sung-hoon, the chief spokesperson for the People Power Party, said on the 26th, “(Coupang) declared its own conclusion that the damage was limited before the investigation results from the government and authorities were even released. This is nothing more than a self-granted indulgence, not cooperation in truth-finding. Coupang must respond with heavy responsibility rather than lobbying, and we urge the government to protect national interests with sophisticated responses based on principle.”
Civil society and the labor sector are also calling for a business suspension rather than defending Coupang. In fact, even before the data breach, Coupang had been criticized by the labor sector for its high labor intensity. The Korea National Council of Consumer Organizations stated, “Coupang’s internal investigation ignores the national investigative system and poses a risk of evidence destruction. We urge the government to implement the highest level of sanctions, including business suspension.” The Korean Confederation of Trade Unions (KCTU) criticized, “We strongly condemn Coupang’s deceptive management that fattens U.S. capital by sacrificing labor. Despite wearing the cloak of innovation and growth, its essence is an anti-labor, murderous corporation that builds profits on the sacrifice of workers.”
The business sector does not rule out the possibility that if Coupang fails to show a sincere attitude at this hearing, it could lead to an actual business suspension. The Coupang hearing held on December 17 was criticized as a 'hollow hearing' because Coupang Inc. Chairman Kim Bom-suk did not attend. There is also an opinion that if Coupang is not properly punished, it will damage the authority of the government. A business source analyzed, “If there are no sanctions against Coupang, it will remain an example showing that lobbying in both Korea and the U.S. works. In particular, since Coupang is known to engage in massive lobbying in the U.S. political and governmental circles as a U.S. company, letting it slide could be interpreted as meaning that U.S. politics are more important than Korean politics.”