While Coupang saw large-scale personal data leaks over several months, it appears the company focused on strengthening security in Taiwan, its strategic hub, by promoting the adoption of "passkeys." Taiwan is a market that Coupang is targeting to grow into a second Korea. Bom Kim, chair of Coupang Inc., is overseeing the business.
According to the industry on the 1st, Coupang recently began full-fledged distribution of passkeys in Taiwan and launched active promotions. A passkey is an authentication method that uses biometrics such as face or fingerprint, or a PIN, without a password. Because it carries less risk of external hacking and theft, corporations are using it as a measure to strengthen security.
Coupang said on the 14th of last month that it independently developed and distributed a dedicated passkey technology that meets global standards in Taiwan. On the strength of passkey distribution, it was recognized for results such as a safe shopping environment and consumer protection, and was selected as a "friendly e-commerce corporation (友善電商)" by the Taiwan government.
Coupang's Taiwan website carries a notice that says, "In the digital age, account security is everyone's concern," and "Coupang has introduced passkeys certified to global standards, allowing safe one-click logins and shopping." On the 17th and 19th of last month, it posted passkey user guides in various places.
On the 18th of last month, Coupang recognized that personal information had been leaked from about 4,500 accounts and reported it to the Personal Information Protection Commission (PIPC) on the 20th. A subsequent follow-up investigation confirmed that the leak had continued for an extended period since June 24. In the process, the number of leaked accounts increased to 33.7 million, about 7,800 times the initial figure.
Since entering Taiwan in 2022, Coupang has declared it will grow the market into a "second Korea." By introducing Korea-style rocket delivery as is and gaining favor among local consumers, it has maintained growth momentum. Kim said on a third-quarter conference call held in the United States on the 5th of last month that the company "solidified its conviction in the long-term potential of the Taiwan market."
Founder Kim is the de facto owner of Coupang, but after listing the company on the U.S. market, he reportedly entrusted domestic operations to the management team and focused on overseas business. He not only avoided designation as the same person (group head) because he holds U.S. citizenship, but also did not comply with National Assembly summons on the grounds that he resides abroad. Recently, he has mainly been shuttling between the United States and Taiwan for work, and in this situation has effectively stepped back.
However, as the fallout from the domestic data leak grew, major media outlets in Taiwan have been closely watching the situation. Referring to the data leak in Korea on the 29th of last month, Coupang's Taiwan subsidiary said, "The investigation has found no evidence of a leak of Taiwanese consumer information," adding, "We are continuing to investigate the matter and are working with leading security companies."