Coupang to Compensate $1.17 Billion to Users Affected by Data Breach

South Korean e-commerce giant Coupang has announced a compensation package worth 1.69 trillion won (approximately $1.17 billion) for users affected by a large-scale data breach disclosed last month, one of the most significant cybersecurity incidents in the country’s retail sector.

In a statement released Monday local time, the company said around 34 million users will be eligible to receive purchase vouchers valued at 50,000 won each. The vouchers can be used across various Coupang services, including online retail and delivery platforms.

The compensation will also extend to former customers who closed their accounts following the breach, broadening the scope of eligibility beyond current users. Coupang said affected individuals will be able to check their eligibility starting January 15.

Harold Rogers, interim chief executive officer of Coupang Corp., described the move as a necessary step to restore trust following the incident. He said the company would “fulfill its responsibilities to the end” and offered a renewed apology to customers impacted by the breach.

The announcement comes amid heightened scrutiny of Coupang after South Korean authorities confirmed that a data leak had potentially affected nearly two-thirds of the country’s population. Police raided the company’s Seoul headquarters earlier this month as part of an ongoing investigation.

The breach, which was first revealed on November 18, led to the resignation of then-chief executive Park Dae-jun. The company has since faced criticism over the pace and clarity of its initial response.

Coupang founder Kim Bom also issued a public apology, acknowledging that the company failed to communicate effectively during the early stages of the incident. He said his apology had come later than it should have, noting that he initially believed public statements should be made only after all facts were confirmed.

“In retrospect, this was a poor judgment,” Kim said. “I should have expressed my deepest regrets and sincere apologies from the beginning.”

Kim added that the company has since recovered all leaked customer data through cooperation with government authorities and secured storage devices belonging to the suspect linked to the breach. According to the company, the information found was limited to about 3,000 customer records and was not distributed or sold externally.

While investigations remain ongoing, the compensation plan marks one of the largest customer redress efforts ever undertaken by a South Korean technology company, as Coupang works to rebuild confidence following the incident.