Key Points
- Coupang is offering $1.18 billion in compensation for a massive data breach.
- The payout comes as 50,000 won vouchers, not cash, for each of the 33.7 million victims.
- Lawmakers and consumer groups called the plan a marketing stunt, not a real apology.
- Company founder Kim Bom apologized but is skipping parliamentary hearings on the matter.
South Korean e-commerce giant Coupang has announced a massive compensation plan for the 33.7 million customers hit by a recent data breach. The company is offering a total of 1.69 trillion won—about $1.18 billion. However, the plan sparked immediate backlash because it doesn’t involve cash. Instead, each affected user will receive a 50,000 won voucher that can only be used on Coupang’s own platforms.
Critics, including lawmakers and consumer advocacy groups, immediately slammed the plan. They accuse the company of trying to turn a disaster into a marketing opportunity. Choi Min-hee, a prominent lawmaker, said Coupang was just “bundling coupons for services no one uses.”
Another group called the offer a “mockery,” arguing it’s a tool designed to trick people into spending more money with the very company that failed to protect their data.
The controversy comes just a day after Coupang’s founder, Kim Bom, made his first public apology for the leak. He promised to speed up compensation, but he is now refusing to attend parliamentary hearings scheduled for this week to answer for the breach. He cited “prior commitments” as his reason for not showing up.
The South Korean parliament is holding two days of hearings to investigate the data leak and the company’s response. When asked about the growing public anger over its voucher plan, Coupang said it had no further comment.
For now, millions of customers are left with a coupon from a company they no longer trust.
