South Korea Imposes Record $409 Million Fine on Coupang for Data Breach

Of the fine, 423.6 billion won was imposed for leaking personal data and 201.1 billion won for non consensual data collection, regulators said. They also imposed a separate 248 million won fine on Coupang Fulfillment Services, Coupang’s logistics subsidiary, for unlawfully collecting personal information and using it to place individuals on an employment restriction list.

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[The New York Times] ‘Amazon.com of South Korea’ Is Fined a Record $409 Million South​ Korea​’s regulatory investigation of Coupang, an e-commerce giant incorporated in the United States, has led to diplomatic tension between Seoul and Washington.

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[South China Morning Post] South Korea hits e-commerce giant Coupang with record US$409 million fine for data breach South Korea imposed on Thursday a record US$409 million fine on e-commerce giant Coupang over a leak that exposed the data of more than 30 million customers, provoking ire from US lawmakers.

The move caps a months-long probe into the country’s largest online retail platform, which is incorporated in the United States. Allegations of a massive data leak first surfaced in November, becoming an unexpected source of friction between Seoul and Washington.

“We have decided to impose a total of 624.68...

=== EARLIER COVERAGE / BACKGROUND (context only — do NOT lead with this) === South Korea’s Personal Information Protection Commission announced a fine of 7 billion won, equivalent to $409 million, against Coupang Corp. for a data breach involving personal information from nearly 34 million accounts.

The commission also levied an 8 billion won fine on SK Telecom Co. and a separate 1 billion won penalty related to non-consensual data collection.

According to the commission, the breach stemmed from a former Coupang employee who accessed the data undetected for months. The commission attributed the incident to inadequate safety management systems at the company rather than sophisticated hacking techniques. The 34 million accounts represent about two-thirds of South Korea’s population.

The commission additionally imposed a 248 million won fine on Coupang Fulfillment Services for unlawfully collecting personal information and using it to place individuals on an employment restriction list. Korean regulations permit fines of up to 3% of a company’s annual sales.

Coupang can challenge the ruling in court under Korean law. The company, whose U.S.-listed shares have declined about 35% since the start of the year, warned last month that revenue growth will slow this year after it issued vouchers to customers following the breach. Coupang had asked the U.S. government in January to investigate South Korea over alleged discriminatory treatment of the company.