Will Coupang’s 50,000 won compensation plan work in the United States?

While Coupang Chairman Kim Beom-seok announced an apology and a so-called “compensation plan” a day before the hearing, U.S. attorney Son Dong-hoo, who is representing the U.S. class action lawsuit, said that the measure will be handled separately from the determination of legal responsibility.

Attorney Son said on ‘Kim Jong-bae’s Focus’ on the 30th, “It is said to be 50,000 won compensation, but from a practical perspective, this part appears to be in response to crisis management and to prevent customer defections, so it is difficult to see it as providing any kind of compensation in legal terms.”

Currently, the U.S. class action lawsuit against Coupang is scheduled to proceed in federal court. Attorney Son explained, “From the perspective of the U.S. federal court, these measures will not be viewed as compensation or closure of recovery for damages, but will be viewed separately from the determination of legal responsibility,” and “We will not judge that a reduction is given because the person committed an act for which he or she is responsible.”

Regarding Chairman Kim Beom-seok's apology and Coupang's statement, the difference between the Korean and English versions was pointed out. Attorney Son said, “The Korean version appears to be aimed at the public and the National Assembly hearings, and the English version is aimed at American investors and American courts.” He added, “In the English version, the subjects were limited to ‘Coupang Korea’ and ‘Korean People.’” He continued, “We believe it was a statement made to appeal as much as possible to the court that this matter had nothing to do with the parent company, Coupang Inc.”

Regarding Coupang's stock price rising more than 6% on the New York stock market, he said, "It can be seen as a big upward trend in the short term, but it is difficult to say that the problem has been resolved." He added, "The stock market largely responds to the reduction of company uncertainty." However, he added, “The volatility of the stock price may be significant depending on the progress of the court trial.”

Coupang expressed concern about the mention of ‘government instructions’ in its statement. Attorney Son said, “It is a very dangerous strategy to use the word ‘government’ without specifying what kind of government or ministry it is,” and added, “This kind of reaction does not enter into the court’s judgment, but it can increase anxiety in the investment market and Korean victims.”

A line was drawn regarding the possibility that public opinion in the United States could influence the lawsuit. He said, “Coupang is adopting a strategy that defines itself as a small and medium-sized business in the United States and requires protection and development,” and added, “I have no concerns that public opinion will change to the extent that it will affect the trial.” He continued, “In the United States, Coupang has been described as a ‘small and middle business’ in lobbying reports and public announcements.”

Regarding Chairman Kim Beom-seok’s absence from the hearing, he said, “I understand that sufficient legal judgment was made.” Also, regarding the impact of the hearing and the results of the government investigation on the U.S. lawsuit, he emphasized that “the fixity of the statement is more important than influencing the judgment,” and that “a statement made at a hearing becomes an official statement that is difficult to overturn in a later court.”

Regarding the status of the U.S. class action lawsuit, he said, “The complaint has been prepared, and the process is ongoing due to the issue of representative plaintiff eligibility,” and “Plaintiff participation can continue even after submission of the complaint.” Regarding the current number of plaintiffs, he said, “It appears that there are more than a few thousand in the United States alone.”

Attorney Son added, “As it is a federal court lawsuit, it may take a long time,” and “Due to the nature of class action lawsuits, it takes time to select a date and the discovery process.”

[View full article]
Etoday - Will Coupang's 50,000 won compensation plan work in the United States? (Shortcut)
YTN - Coupang, in fact, says something different from the US..."They say it is a small business that needs to be protected" (Shortcut)
Hankook Ilbo - Coupang's U.S. litigation attorney says, "Coupang's compensation plan will not be viewed by U.S. courts as compensation and closure" (Shortcut)
Hankook Ilbo - Coupang looks at the U.S. stock market rather than Korean customers... Controversial “3,000 leaks” announced in the U.S. (link)
Rotalk News - Coupang, Korea Line's "global leader"... “Small and medium-sized businesses in need of protection” in the US? (Shortcut)