Consumers are angry at Coupang for avoiding responsibility... Class action lawsuit begins in earnest

Consumers are increasingly criticizing Coupang for failing to come up with a relief plan for victims even a month after becoming aware of the customer personal information leak incident. In Busan, collective action appears to be in full swing, starting with a press conference by a civic group on the 15th, followed by the submission of complaints through law firms.

According to Daeryun Law Firm on the 23rd, more than 3,900 people participated in the lawsuit for damages against Coupang Inc, which is being filed by SJKP LLP, a local partner law firm in the United States. Coupang Inc, Coupang's parent company, submitted a report titled 'Significant Cybersecurity Incident' to the U.S. Securities and Exchange Commission (SEC) on the 16th (local time). According to SEC regulations, companies listed on the U.S. stock exchange must make a disclosure within four business days from the date the company determines a cybersecurity incident to be “significant.”

However, controversy arose because the announcement was made only after a considerable amount of time had passed after Coupang became aware of the accident. In addition, Coupang's interim CEO Harold Rogers received strong criticism when he attended a National Assembly hearing on the 17th and said, "Although we are not subject to disclosure obligations, we made the disclosure considering continued interest."

In particular, social public anger is not expected to subside easily as it is pointed out that Coupang is going beyond the controversy over 'delayed disclosure' and is consistently avoiding legal responsibility rather than resolving the situation.

There are also voices of criticism from the industry. In particular, it is evaluated as a clear contrast to the actions of other companies that were in similar situations in the past. Previously, Kakao quickly formed a damage support council when a fire in 2022 paralyzed related services and caused damage. SK Telecom also announced measures for victims, such as free SIM replacement, when a customer information leak occurred.

An industry official who requested anonymity explained, “There are rumors coming out both inside and outside the industry that Coupang is holding meetings with domestic and foreign law firm officials in preparation for class action lawsuits in the U.S.,” adding, “It seems like they are putting more emphasis on legal response than preparing measures for consumers.”

The government also drew its sword. On the 18th, Deputy Prime Minister and Minister of Science, ICT and Future Planning Bae Kyung-hoon submitted the 'Coupang Incident Pan-Ministry Response Direction' as an emergency agenda at the 2nd Science and Technology Ministerial Meeting held at the Seoul Government Complex and began emergency response by forming a task force (TF) team. This TF aims to go beyond simple accident resolution and prepare fundamental measures such as reforming the information security certification system and strengthening corporate responsibility.

However, some voices are raising concerns about institutional limitations. An official in the security industry predicted, "For Coupang, defending against a U.S. lawsuit that applies punitive damages will be the top priority," and added, "Despite pressure from the government, it is highly likely that Coupang will remain passive until the end in announcing an apology or compensation plan that could serve as unfavorable evidence in a lawsuit."

Reporter Baek Jae-hyeon (itbrian@newsis.com)

[View full article]
Consumers are angry at Coupang for avoiding responsibility... Class action lawsuit in full swing (link)