Coupang's Data Breach Drama: Legal Actions and Market Implications

Coupang faced scrutiny when founder Bom Kim failed to attend a South Korean parliamentary hearing about a data breach affecting 33 million customers. The breach has impacted Coupang's stock value and could result in hefty fines. Despite the controversy, Coupang's market dominance is expected to help it remain resilient.

The founder of Coupang, Bom Kim, did not attend a parliamentary hearing in Seoul regarding a recent data breach affecting over 33 million customers. His absence has led to a legal complaint, as parliamentary hearings require attendance for testimonies.

Tensions rose at the hearing, with interim CEO Harold Rogers under pressure from lawmakers. The breach revealed customer data but was deemed non-critical under U.S. laws. Shares of Coupang, partially owned by SoftBank, dropped 17% following the breach's disclosure.

Coupang's considerable e-commerce market share in South Korea is expected to mitigate damage from the breach. Nonetheless, potential fines due to insufficient data protection could exceed $680 million, with legislative efforts underway to increase penalties for large-scale data breaches.

(With inputs from agencies.)