Coupang's Controversial Compensation Plan Sparks Backlash

South Korean e-commerce giant Coupang announced a compensation plan worth 1.69 trillion won for a massive data breach affecting 33.7 million accounts. The plan, however, faced backlash as it offers vouchers for Coupang services instead of direct compensation. Criticism came from lawmakers and consumer advocacy groups.

South Korean e-commerce company Coupang has stirred controversy with its compensation plan following a major data breach. The company announced on Monday that it would offer 1.69 trillion won ($1.18 billion) in company vouchers to holders of the 33.7 million affected accounts.

This move comes on the heels of a public apology issued by Coupang founder Kim Bom for the incident. Despite criticism, Kim has declined to attend upcoming parliamentary hearings, citing prior commitments. Lawmakers have criticized the compensation method as being restrictive, offering vouchers only usable on Coupang's own platforms.

Consumer advocacy groups have also weighed in, accusing Coupang of exploiting the situation for marketing gain rather than genuine restitution. South Korea's parliament is scheduled to hold hearings on the matter as public discontent grows.

(With inputs from agencies.)