Korea Fair Trade Commission Chairperson Ju Biung-ghi on the 19th sharply criticized Coupang's "50,000 won coupon compensation plan" proposed after the massive personal data leak.
The Chairperson appeared on the YouTube channel "Maebul Show" that day and said, "I was really very angry," adding, "corporations that undermine workers' health rights and employees' interests like this do not fit global standards at all."
Earlier, Coupang provided four coupons worth a total of 50,000 won to members affected by the data leak: ▲ 5,000 won for all Coupang products ▲ 5,000 won for Coupang Eats ▲ 20,000 won for Coupang Travel ▲ 20,000 won for R.LUX. However, the amount applicable to Coupang products that are actually used frequently is limited to 5,000 won, prompting criticism that this is not compensation but a means to promote its own platforms.
Regarding this, the Chairperson noted, "(Coupang's compensation plan) leveraged the data leak incident to use Coupang users' network for the growth of new companies they have not been able to scale."
On the potential for sanctions over the personal data leak, the Chairperson said, "An investigation by the relevant ministries must come first," adding, "after confirming whether consumers' information was used for identity theft causing property damage, or whether there is a risk of such damage, we can order remedial measures for victims." The Chairperson added, "If remedial measures are not implemented, even a business suspension is possible."
The Chairperson also escalated criticism of Coupang's overall business practices. The Chairperson said, "I feel distressed because it seems they are engaging in conduct in Korea similar to the scandal in which Nike exploited child labor in developing countries in the past."
On the issue of platforms' market dominance, the Chairperson said, "A platform is a vast laboratory with no physical constraints," adding, "they can plunder the rewards for suppliers' efforts through private-label products. The Korea Fair Trade Commission (FTC) will continue to monitor such predatory business practices strictly."
Payment settlement practices also came under scrutiny. The Chairperson said, "Coupang settles on average in 52.3 days," adding, "a business model that makes maximum use of a lax legal framework is not appropriate for a corporation that leads the market."