South Korea's Coupang in Crisis: Faces Probe Over Massive Data Hack

South Korean authorities are actively investigating a significant data leak at the online retail giant, Coupang Inc., which has potentially exposed approximately 33.7 million customer accounts. This incident could mark the widest hack to date for the country, which has a population of 51.7 million people. Initial reports from Yonhap News suggest that the personal information was allegedly compromised by a Chinese national who was a former employee of the company.
The US-listed e-commerce firm first detected an anomaly on November 18, becoming aware that personal details from around 4,500 accounts, including names, email addresses, shipping addresses, and phone numbers, had been exposed. A subsequent and more thorough investigation by Coupang revealed the much larger scale of the breach, confirming that the data for about 33.7 million accounts had been compromised. Unauthorized access to Coupang's systems through overseas servers appears to have commenced as early as June 24.
The investigation was formally initiated after Coupang filed a complaint with the police, although the complaint did not name a specific suspect at that time. Responding to the severity of the situation, the Ministry of Science and ICT announced that it has formed a joint investigation team. This team's primary objective is to meticulously analyze the cause of the incident and ascertain the full extent of the data compromise.
This major security breach at Coupang serves as a stark reminder of the escalating cybersecurity risks and vulnerabilities within South Korea's digital infrastructure. The country has witnessed several high-profile data incidents involving other prominent corporations in recent times. For example, SK Telecom Co., the nation's largest mobile carrier, was penalized with a $97 million fine earlier this year due to its failure to adequately safeguard customer data and for delayed reporting of previous breaches. Additionally, companies such as KT Corp. and Lotte Card Co. have also publicly disclosed their own data leaks in recent months, underscoring a broader challenge in maintaining digital security across various sectors.
In the aftermath of the discovery, Coupang has taken immediate action to mitigate further damage. The company stated in an emailed statement that it has successfully blocked the unauthorized access route and has significantly strengthened its internal monitoring protocols to prevent future occurrences. Coupang has issued an apology for the incident and has affirmed its commitment to continue cooperating fully with the ongoing investigation by the authorities. Despite this security setback, Coupang reported on November 4 that its "product commerce active customers" reached 24.7 million in the third quarter, demonstrating a 10% year-on-year growth.
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