Product prices reflecting the application of a 5,000-won discount coupon on its e-commerce platform / Courtesy of Coupang
E-commerce giant Coupang on Thursday began to make compensation payments for 33.7 million customers affected by a massive personal data breach, amid apparently growing public criticism that the move may be a mere sales tactic that offers little or no actual benefits to consumers.
On Dec. 29, about a month after confirming the data breach, Coupang announced a compensation plan worth more than 1.68 trillion won ($1.17 billion), under which affected customers — including paid Coupang Wow members, regular users and former customers who have closed their accounts — will receive discount vouchers totaling 50,000 won.
The compensation package consists of 5,000 won in coupons for Coupang’s e-commerce platform, 5,000 won for food delivery service Coupang Eats, 20,000 won for Coupang travel products and 20,000 won for R.LUX luxury beauty and fashion items.
“Customers who have closed their Coupang accounts are required to re-register as members to receive the compensation,” a company spokesperson said.
The vouchers will be valid for three months, through April 15, the company said.
In response, an association representing 135 consumer rights and civic groups launched a campaign opposing the compensation scheme, criticizing the vouchers as a sales tactic aimed at boosting declining revenue rather than a genuine form of compensation.
“Coupang has relied on deception and gimmicks from issuance to use, effectively forcing customers to use coupons regardless of their intent,” an official from the People’s Solidarity for Participatory Democracy said.
Separately, an official from the Korean Confederation of Trade Unions (KCTU) criticized claims by U.S. lawmakers that the Korean government is engaged in a “political witch hunt,” calling the remarks “a clear violation of sovereignty and interference in domestic affairs.”
Coupang has said that data from only about 3,000 accounts was stored and later deleted by a former employee involved in the incident. The company initially disclosed the data breach on Nov. 29, saying the compromised information included users’ names, phone numbers, email addresses and delivery addresses.
However, the Seoul government reaffirmed that the breach affected approximately 33 million customers in Korea, accusing the U.S.-listed company of having “malicious intent” in unilaterally releasing its own assessment report that claimed far less damage.
