A employee walks by a door at a Coupang success middle in Seoul on Dec. 17, 2025, as the corporate faces Nationwide Meeting scrutiny over an enormous leak of buyer info. (Yonhap)
With Korean e-commerce large Coupang dealing with a class-action lawsuit from American buyers harmed by an enormous leak of private info, the Korea Truthful Commerce Fee (KFTC) has raised the potential for forcing Coupang to droop its enterprise operations.
The KFTC mentioned Sunday it plans to debate numerous sanctions, together with enterprise suspension, if a joint public-private investigation finds that the Coupang leak has resulted in prospects’ personal info getting used for illicit functions.
KFTC Chairperson Ju Biung-ghi mentioned in an look on a KBS information program on Friday that the federal government company will “mobilize all accessible means, together with battle mediation, to treatment the harms suffered by customers.”
“We’re additionally open to the potential for issuing a enterprise suspension,” Ju mentioned.
The enterprise suspension possibility the KFTC is contemplating is grounded within the Act on Shopper Safety in Digital Commerce. The act stipulates that when prospects endure pecuniary losses because of the illicit use of private info utilized in transactions or when that’s prone to occur, the enterprise operator should take the mandatory measures to revive that harm.
The KFTC is permitted to problem corrective measures towards companies which are in violation of the regulation. When a enterprise fails to implement these corrective measures or when it’s believed that the hurt can’t be prevented by way of these measures alone, the KFTC may order the enterprise to droop its operations for as much as a yr.
Ultimately, enterprise suspension would solely be an possibility if the non-public info leak causes pecuniary and if efforts to treatment that harm are unsuccessful. As such, observers assume it’s unlikely the KFTC would resort to the drastic measure of ordering the suspension of operations so long as there are not any demonstrated instances of pecuniary losses ensuing from the Coupang leak.
One other issue that the KFTC must contemplate is the collateral harm that might be suffered by firms that promote merchandise on Coupang storefronts and the Coupang supply employees.
“Given the varied situations that must be met, equivalent to affirmation of injury to customers or the chance of such harm occurring, that is unlikely to result in an precise enterprise suspension,” mentioned Shin Yeong-ho, a professor of economics at Chung-Ang College.
The obvious cause the Korean authorities publicly talked about the potential for suspending Coupang’s enterprise operations is to stress the corporate by leaving little doubt that every one choices are on the desk.
The federal government’s hardball techniques are available in response to persevering with efforts by Coupang founder and chairman Kim Bom-suk — the last word determination maker on the firm — to shift the blame. For instance, Kim, who goes by Bom Kim within the US, repeatedly refused to attend Nationwide Meeting hearings in regards to the Coupang leak.
Earlier, the Korean authorities formally launched a activity drive representing the KFTC, the Ministry of Science and ICT, the Nationwide Intelligence Service and the Nationwide Police Company. This all-of-government activity drive is charged with quickly discovering methods to carry Coupang’s toes to the hearth.
The Nationwide Meeting additionally appears set on bringing to bear all its authority, equivalent to holding joint hearings and launching a parliamentary probe, to make sure that Coupang is held accountable.
Joint hearings, if held, would possible contain the Land, Infrastructure and Transport Committee, contemplating that the Ministry of Land, Infrastructure and Transport has the authority to problem licenses for supply companies. Revocation of that license can be a critical blow for Coupang for the reason that firm’s enterprise mannequin relies on its benefit within the supply enterprise.
There are additionally requires Korea’s Private Info Safety Fee to impose punitive fines on Coupang for the non-public info leak, though which may require passing further laws.
By Kim Yoon-ju, employees reporter
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