Coupang Hit With Record-High Fine: Will It Reignite 'Korea-U.S. Tensions'?

[Anchor]

Coupang has been hit with the largest fine in history following a massive personal data breach.

We are joined by reporter Choi Seung-hoon to discuss what went wrong and what issues remain ahead.

Q. A record-breaking fine... What is the reason?

[Reporter Choi Seung-hoon: Yes, this fine is equivalent to about one year of Coupang's operating profit. Generally, fines are larger when revenue is higher. SK Telecom, which was fined 130 billion won, had revenue of around 17 trillion won, whereas Coupang's revenue is 49 trillion won. Regulators can impose a fine of up to 3% of the average revenue over three years. First, revenue unrelated to the incident is excluded, and then the severity of the case is assessed. Coupang did offer compensation coupons in the interim, which served as a mitigating factor. However, it was pointed out that basic management was negligent and the scale of the leak was significant. It is understood that the case avoided the highest level of severity classification. Civic groups have argued that the fine is woefully inadequate, amounting to only 16,000 won per victim.]

Q. Reigniting 'Korea-U.S. Tensions'?

[Reporter Choi Seung-hoon: It has been reported that after this incident broke, Coupang's U.S. parent company engaged in comprehensive lobbying efforts targeting the White House and the U.S. Congress. There were claims raised in the U.S. Congress that American companies are being discriminated against, and U.S. Vice President Vance even brought up the topic of Coupang to Prime Minister Kim Min-seok first. The Personal Information Protection Commission stated that since most of the revenue is generated in Korea, it did not take into account Coupang's nationality or diplomatic relations, even if it is a U.S. company. The government plans to explain the details to the U.S. side, maintaining that this measure was a decision made in accordance with domestic law and due process.]

Q. What investigations remain regarding the 'Coupang allegations'?

[Reporter Choi Seung-hoon: First, there are still unresolved issues concerning Chairman Kim Bom-suk. We were the first to report on circumstances suggesting that Chairman Kim attempted to cover up the death of Jang Deok-jun, who worked at a logistics center in 2020. Investigations by the Ministry of Employment and Labor and the police have not yet concluded. The National Tax Service, which conducted a tax audit on Coupang's logistics subsidiary last year, has been investigating Coupang's headquarters since May 28 as an extension of that process. Additionally, the Korea Fair Trade Commission is investigating allegations that its affiliate, Coupang Eats, pressured partner restaurants to keep food prices the same as or lower than those of competitors. Last April, the Fair Trade Commission designated Chairman Kim Bom-suk as the de facto head of the company, or 'person of control.' Since Coupang is challenging this in court, it is expected to take quite some time before these matters are resolved.]
※ Please note: This article was translated by AI and may contain errors.