The Financial Supervisory Service decided to launch an inspection of its subsidiary Coupang Pay in connection with Coupang's massive personal data leak.
According to the financial authorities on the 12th, the Financial Supervisory Service (FSS) finished six weeks of on-site checks at Coupang Pay and will begin an inspection from that day. The FSS investigated whether payment information was also leaked at Coupang Pay, a subsidiary linked under a "one ID, one click" structure, after more than 33 million pieces of personal information were leaked at Coupang in Nov. last year. However, it was reported that Coupang Pay did not submit even the materials requested at the beginning of the on-site checks, so the specifics could not be confirmed.
Coupang Pay said the internal process takes time because its parent company, Coupang, is a U.S. corporations. In response, the FSS decided to switch to an inspection. As an electronic financial business operator, Coupang Pay is subject to inspection by the Electronic Financial Transactions Act, and if it refuses, obstructs, or evades inspections or the submission of materials, sanctions such as fines can be imposed.
However, the FSS is said to judge that the likelihood of a payment information leak is low so far. Accordingly, the FSS will make additional checks on whether payment information was leaked and will focus on whether there were violations of the Credit Information Act and the Electronic Financial Transactions Act in the process of sending and receiving information between Coupang and Coupang Pay.
The FSS sent a pre-notice of inspection to Coupang affiliate Coupang Financial on the 7th and plans to begin a full-scale inspection starting on the 12th. The "seller growth loan," with a maximum annual interest rate of 18.9%, is the target of the inspection, and the FSS is said to have identified indications of violations of the Financial Consumer Protection Act in the appropriateness of the interest rate calculation and in lending and repayment rules.