As a joint National Assembly hearing on Coupang's large-scale personal data leak, unfair transaction practices, and labor environment issues was held on the 30th-31st, questions poured in on the first day over the dispute surrounding the announcement of Coupang's "self investigation" results and the adequacy of the compensation plan presented by the company. Coupang repeated its existing position that the results it released were in line with government instructions.
◇ "NIS director requests perjury charge against acting chief Rogers"
Ahead of the hearing, on the 25th, Coupang released its own investigation results on the personal data leak incident. After questioning the former employee suspected of leaking the information, the company said the leaker used a stolen security key to access basic customer information for 33 million customer accounts, actually saved customer information for about 3,000 accounts (name, email, phone number, address, some order information), and then deleted all the saved information after seeing media reports about the incident. Coupang also said all these procedures were carried out under government instructions.
At the hearing, disputes arose over the integrity of the investigation's process and results. Harold Rogers, Coupang's acting chief, answered a question from Rep. Hwang Jeong-ah of the Democratic Party of Korea asking "which government ministry ordered the investigation," saying, "I understand that the agency acknowledged it publicly," and named the National Intelligence Service. Rogers added, "That agency said we should cooperate," and "Under Korean law, we view business requests as binding, and we understood that we had to follow the agency's instructions."
However, Bae Kyung-hoon, Deputy Prime Minister and Minister of the Ministry of Science and ICT, countered that "in the process of bringing evidence into the country, the NIS assisted because the evidence could be damaged or lost due to Coupang's mistakes."
Ryu Je-myeong, second vice minister of the Ministry of Science and ICT, also said, "Coupang says it conducted a self investigation under government agency instructions, but after confirming the government's official position at the pan-government task force (TF) level, I can state clearly that no government agency ever ordered or intervened in Coupang's self investigation."
Science, ICT, Broadcasting and Communications Committee Chairperson Choi Min-hee said, "While monitoring the hearing, the NIS director sent a request to file a perjury charge against acting chief Harold Rogers. We will wrap up tomorrow's hearing and handle this matter."
◇ Coupang draws a line on talks over additional compensation
Coupang praised the customer compensation plan it released the previous day as "unprecedented in scale" and drew a line against talks on additional compensation. For 33.7 million accounts that received a personal data leak notice at the end of Nov., Coupang plans to distribute, starting Jan. 15 next year, purchase vouchers worth a total of 50,000 won per person for all Coupang products via Rocket Delivery, Rocket Direct Purchase, Seller Rocket, and Marketplace (5,000 won), Coupang Eats (5,000 won), Coupang Travel products (20,000 won), and R.LUX products (20,000 won).
Some consumers who saw the plan criticized it, saying, "Isn't this effectively aimed at promotional effects?" When R.LUX launched in Oct. 2024, Coupang also ran a promotion that credited 10% of the purchase amount as Coupang Cash for purchases through R.LUX, showing a history of attempting "bundled selling of services."
On the plan, Rep. Kim Hyun-jung of the Democratic Party of Korea said, "Of the 50,000 won in compensation, 40,000 won are discount coupons for the company's own services, R.LUX and Coupang Travel, which customers do not normally use," adding, "Checking the lowest-priced product handled by R.LUX, which deals in luxury goods, it was socks priced at over 30,000 won. With the 20,000 won coupon provided as compensation, you cannot buy even a single sock."
Kim asked acting chief Rogers, "Do you plan to present a more proactive compensation plan?" but Rogers replied, "The plan we presented amounts to 1.7 trillion won. This is an unprecedented level." There was no mention of additional compensation.
Meanwhile, the hearing also took questions on Coupang's overwork death issues. Rep. Lee Yong-woo of the Democratic Party of Korea mentioned the late Jang Deok-jun, who died in 2020 while working at a Coupang logistics center, and acting chief Rogers said, "We acknowledge full responsibility and sincerely apologize for the death." Former Coupang head Park Dae-jun also said, "I feel a heavy sense of responsibility," and added, "I would like to take this opportunity to once again express my apologies and condolences."
Lee also asked whether Coupang tried to cover up the overwork death at the time, but acting chief Rogers avoided an answer, saying, "The facts of the matter have not yet been confirmed."
At this hearing, 13 people, including former and current Coupang executives, were selected as witnesses. Coupang founder and Coupang Inc. Chair Bom Kim, his younger brother and Coupang Vice President Kim Yu-seok, and former Coupang head Kang Han-seung submitted a written statement explaining his absence.