South Korea fines e-commerce giant Coupang record US$400 million over data leak

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SEOUL: South Korea imposed on Thursday (Jun 11) a record US$408 million fine on e-commerce giant Coupang over a leak that exposed the data of more than 30 million customers, provoking ire from US lawmakers.

The move caps a months-long probe into the country's largest online retail platform, which is incorporated in the United States.

Allegations of a massive data leak first surfaced in November, becoming an unexpected source of friction between Seoul and Washington.

"We have decided to impose a total of 624.68 billion won in fines ... on Coupang for violating safety obligations and collecting personal data without legal grounds," a Personal Information Protection Commission statement said.

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"Inadequate basic safeguards, including poor management of authentication signing keys and lax access controls" resulted in the personal data of around 37.5 million users being exposed, the commission said.

Its probe also found that "Coupang had unlawfully collected the online activity records of about 11.17 million users on third-party websites and apps, and stored them in a database in a state that allowed individual identification".

South Korean lawmakers sent a joint letter in April raising concerns over "undue pressure" from US politicians regarding Seoul's investigation into the e-commerce giant.

The letter, co-signed by nearly 100 MPs, followed accusations by US Republicans that the probe into the US-listed company constituted "discriminatory regulatory actions" against American businesses.

The dispute has also reportedly affected high-level security talks between the two allies, according to local media.

The US is said to have warned it could halt such discussions unless the legal protections of Coupang chairman Kim Bom - an American citizen also known as Kim Bom-suk - were guaranteed.

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