Alphabiz - Mass Dispute Mediation Begins Over Coupang Data Breach Affecting Tens of Millions

Coupang. (Photo courtesy of Coupang)

[Alpha Biz= Kim Jisun] A collective dispute mediation process has been launched over a large-scale personal data breach involving Coupang, with compensation standards expected to become a key issue.

On April 7, the Consumer Dispute Settlement Commission under the Korea Consumer Agency announced it had initiated collective mediation procedures related to the incident.

Coupang initially reported in November last year that approximately 4,536 customer accounts were affected. However, subsequent investigations revealed that the breach expanded to about 33.7 million accounts, with additional delivery address information exposed in around 165,000 cases.

A joint public-private investigation led by the Ministry of Science and ICT confirmed that the breach exploited vulnerabilities in the “edit my information” page, resulting in the exposure of user data including names and email addresses. The exact scale of the breach will be finalized by the Personal Information Protection Commission.

A group of 50 consumers filed for collective mediation in December seeking damages. The commission initially delayed proceedings pending investigation results but resumed and formally initiated the process following confirmation of the expanded breach.

The commission will announce the initiation until May 4 and then prepare a mediation proposal. A decision is expected within 30 days after the announcement period, extendable up to 60 days if necessary. If accepted by both parties, the mediation will carry the same legal effect as a court settlement.

Authorities also plan to ensure that even consumers who did not directly participate in the mediation process may be eligible for compensation.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)