Consumer Dispute Mediation Committee: Coupang Must Pay 100,000 Won to Data Breach Victims

The Korea Consumer Agency's Consumer Dispute Mediation Committee has decided that Coupang should compensate victims of a personal data leak 100,000 won per person in cash or Coupang Cash.

This marks the first time Coupang's liability for damages regarding a personal information leak has been recognized.

The committee announced that it reviewed the case after 50 consumers filed for collective dispute mediation regarding last year's data breach, and consequently recognized Coupang's liability to pay consolation money.

The committee based its decision on the fact that not only general personal information such as Coupang members' names, emails, and addresses was leaked, but also information closely related to privacy, such as apartment complex entrance passwords and order histories. It also noted that hackers extracted information over a long period and directly emailed some customers regarding the leak, revealing the possibility of actual misuse.

In addition, the committee judged that although Coupang claimed there was no possibility of further leaks, it is difficult to conclude as such, establishing the company's liability to pay consolation money for the psychological damages suffered by consumers.

The compensation amount was set at 100,000 won per person.

Factors taken into consideration include the court's customary recognition of approximately 100,000 won in consolation money in large-scale personal data breach cases, the sensitivity of the leaked information, and Coupang's failure to submit actual usage data of its own compensation plan.

In accordance with the opinion of the representative of the applicants that alternative payment methods could be accepted to increase the acceptance rate of the mediation, applicants will be allowed to receive Coupang Cash instead of cash if they so choose.

Coupang, as a party involved, must notify the committee of its acceptance or rejection of the mediation proposal within 15 days from the date of receiving the decision document.

If no separate expression of intent is made, it will be deemed accepted, and if both parties accept, it will have the same effect as a judicial settlement.

If Coupang accepts this mediation decision, the committee plans to proceed with subsequent procedures, such as submitting a compensation plan, so that the same compensation can be provided to victims who did not participate in the collective dispute mediation.

According to government investigations, approximately 37.56 million cases of personal information involving both members and non-members were leaked, and if all of them apply for compensation, the total compensation amount would reach 3.7 trillion won.

Previously, in June, the Personal Information Protection Commission imposed a total of 624.68 billion 81 million won in fines and 16.8 million won in penalties on Coupang for its personal data leak and collection of personal information without legal grounds.

This is the largest scale ever recorded in a domestic Personal Information Protection Act violation case.

Following the disclosure of the data leak, Coupang previously provided 50,000-won shopping vouchers to 33.7 million people whose personal information was leaked in January.

Regarding the Consumer Dispute Mediation Committee's decision, Coupang stated, "We will thoroughly review the Consumer Dispute Mediation Committee's proposal after receiving and examining it."
※ Please note: This article was translated by AI and may contain errors.