The Korea Federation of Micro Enterprise (KFME) on the 27th strongly condemned Coupang for responding lukewarmly despite a massive personal data leak and leaving merchant partners' damages unattended. It also urged the preparation of practical compensation measures for merchant partners and a National Assembly investigation.
The Korea Federation of Micro Enterprise (KFME) issued a commentary that said, "An unprecedented system collapse has occurred with the leakage of personal information of 33.7 million people, and the so-called 'Talpang rush' has followed, causing merchant partners to suffer a double blow of declining sales and damaged brand images," and noted, "Nevertheless, Coupang is turning a blind eye to the cries of its merchant partners."
The federation also criticized Coupang for being passive in protecting domestic small businesses while engaging in large-scale lobbying of U.S. politicians. Coupang's parent company, Coupang Inc, is said to have spent about 15.9 billion won in lobbying expenditure over four years since its listing, targeting the Office of the United States Trade Representative (USTR), the Department of Commerce, the White House, and others.
The federation said, "It is pouring money into a 'bulletproof lobbying' campaign to win favor with U.S. politicians by squeezing the lifeblood of Korean small businesses," and emphasized, "Coupang's two faces have been laid bare to the world, hiding behind the mask of innovation while routinely engaging in predatory practices such as 'item winner,' 'preferential treatment for private-label products,' and 'price pressure.'"
The federation demanded that Coupang establish ▲ effective measures to prevent a recurrence of the personal data leak incident ▲ practical compensation for losses suffered by merchant partners from sales damage ▲ the establishment of fair transaction order through a thorough review of platform bullying and the commission structure. It also urged the National Assembly to "immediately launch a strong investigation into Coupang to thoroughly determine the causes of the security incident and its unfair practices."
The federation said it "will respond strongly by mobilizing all legal means, including legal support and class-action lawsuits for merchant partners, if no visible measures from Coupang emerge in the near future."