South Korea's Coupang to pay $1.1 bn after data breach hits 34 mn users

South Korean e-commerce firm Coupang said it will pay 1.69 trillion won ($1.17 billion) in compensation to users affected by a major data breach revealed last month. Around 34 million users were impacted, CNBC reported.

 

In a statement released on Monday, Coupang said it will give purchase vouchers worth 50,000 won to eligible users. These vouchers can be used across different Coupang services. The company said former users who closed their accounts after the data breach will also be able to receive the vouchers.

 

Users can check whether they are eligible starting January 15, the company’s statement said.

 

Interim CEO apologises to customers

 

Harold Rogers, interim chief executive officer of Coupang Corporation, called the compensation plan a “responsible measure for our customers”. He said that the company would “fulfill its responsibilities to the end".

 

“I once again deeply apologise to our customers,” Rogers said in the statement.

 

Rogers’ apology came a day after Coupang founder Kim Bom also issued an apology. Kim said he was “devastated” by the disappointment caused to users.   

 

The data breach, which became public on November 18, led to the resignation of CEO Park Dae-jun earlier this month, the news report said.

 

In a separate statement, Kim said the company failed to clearly explain the situation from the beginning.

 

The US-based chairman said his apology was “overdue”, adding that he initially believed it was better to speak publicly only after confirming all the facts. “In retrospect, this was a poor judgment. While Coupang worked tirelessly to resolve the situation, I should have expressed my deepest regrets and sincere apologies from the beginning. My heart has been heavy ever since I first learned of the data breach,” Kim said.

 

Leaked data recovered, says company

 

Kim said that Coupang has recovered all leaked customer information with help from the government. Authorities also seized storage devices belonging to the suspect behind the breach.

 

He added that only 3,000 customer records were found on the suspect’s computer and said the data was neither shared nor sold outside.