Shares of Coupang Inc., the U.S. parent of Coupang, have extended losses after a massive personal data leak. Major investors, including global investment banks (IBs), are watching regulatory risks at home and abroad, leading to a drop in the corporations' value. As part of its response, Coupang began offering compensation coupons on the 14th, but negative public opinion has hardly eased.
On the 18th (local time) on the New York Stock Exchange (NYSE), Coupang Inc. closed at $21.13, down $0.12 (0.56%) from the previous transaction day. Compared with $28.2 on the transaction day just before the data leak notice (Nov. 28 last year), it fell about 25%.
During the same period, Coupang Inc.'s market capitalization also evaporated by more than 10 trillion won. As of Nov. 28 last year, Coupang Inc.'s market cap decreased from about $51.4 billion (about 75 trillion won) to $38.6 billion (about 57 trillion won). That is a drop of about 18 trillion won in just over two months.
Unlike immediately after the large-scale personal data leak, more global investment banks (IBs) are issuing negative outlooks on Coupang Inc. Morgan Stanley said on the 5th (local time) that regulatory risks could act as an overhang for the stock for a considerable period. Morgan Stanley cited concerns such as the possibility of worsening public opinion following the National Assembly hearing late last year and Coupang's release of its own investigation results.
There are also projections that management expense burdens for responding to various regulations and strengthening cybersecurity will increase. Citigroup cut its target price for Coupang Inc. to $28 from $35. Considering stronger security systems and user compensation plans, Citigroup projected that an expense burden of about 1.7 trillion won could arise.
Among investors, there are worries that sanctions under U.S. securities law or local legal risk could become variables for the stock. On the 29th of last month (local time), Coupang Inc. disclosed to the U.S. Securities and Exchange Commission (SEC) the results of its own investigation into the data leak. It sparked controversy in Korea for releasing the findings without government consultation, and analysts said the move reflected awareness of possible local sanctions.
Class-action lawsuits against Coupang Inc. are picking up not only in Korea but also in the United States. Local law firm Hagens Berman filed a class action on the 24th of last month (local time), citing disclosure violations and poor management. In Korea, Coupang shareholders also filed their first class action in a U.S. court on the 7th of this month through With The People Law Office.
Meanwhile, as Coupang began issuing compensation coupons, negative public opinion flared again. Coupang decided to give a 50,000 won purchase voucher per person to 33.7 million members affected by the data leak, but criticism poured in that the voucher amount and composition amounted to "promotional coupons."
Moreover, because the purchase voucher is valid for only three months and usage is limited, most consumers reacted by calling it "window dressing" and "a token compensation plan." According to a voucher manual Coupang distributed internally, the use period runs until Apr. 15, 2026, and it will automatically expire if not used within that period.
On the 15th, in front of Coupang's headquarters in Songpa-gu, Seoul, 135 civic groups held a press conference titled "refuse to use Coupang coupons." Some argued that the automatic application method of the coupons infringes on consumer choice.
Separately, attention is on whether the so-called "leaving Coupang" trend will continue after the incident. According to app analytics firm Mobile Index, Coupang's daily active users (DAU) fell about 19% in one month, from 17.99 million on Dec. 1 last year to 14.59 million on Dec. 31 of the same month.