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Coupang Faces Escalating Probes as Breach Fallout Hits Users and Sellers

Regulators are weighing penalties that could reach 3% of sales under Korea’s privacy law.

Overview

  • South Korea’s media regulator opened an emergency investigation into whether Coupang’s multi‑step account deletion process unlawfully restricts users’ cancellation rights.
  • The Personal Information Protection Commission signaled stern action, citing potential fines up to roughly 1.2 trillion won and a review of the company’s ISMS‑P certification, and ordered re‑notification using the term “leak.”
  • The Financial Supervisory Service began an on‑site inspection of Coupang’s identification and payments systems and said it will escalate to a formal probe if any irregularities are found.
  • Customers reported suspicious login attempts and unauthorized high‑value charges on cards stored with Coupang, while the company maintains it has seen no evidence of payment‑system intrusion or leaked credentials.
  • App data showed daily active users surged to a record near 18 million after the disclosure before easing the next day, and some small merchants reported double‑digit sales declines and considered shifting to rival marketplaces.