The stock of U.S. Coupang Inc., the parent company of Coupang, has widened its losses after a massive personal data leak. Major investors, including global investment banks (IB), are watching regulatory risks at home and abroad, leading to a decline in the value of the corporations. As part of its efforts to manage the fallout, Coupang has been issuing compensation coupons since the 14th, but negative public opinion has been slow to subside.
On the 18th (local time), Coupang Inc. closed at $21.13 on the New York Stock Exchange (NYSE), down $0.12 (0.56%) from the previous trading day. Compared with $28.2 on the trading day just before the data leak notice (Nov. 28, 2024), 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, 2024, Coupang Inc.'s market cap fell from about $51.4 billion (about 75 trillion won) to $38.6 billion (about 57 trillion won). That is a decrease of about 18 trillion won in just over two months.
Unlike immediately after the large-scale personal data leak, more global investment banks (IB) are issuing negative outlooks on Coupang Inc. Morgan Stanley said on Jan. 5 (local time) that regulatory risk could act as an "overhang" on the stock for a considerable period. Morgan Stanley cited concerns such as the potential for worsening public opinion following the National Assembly hearing at the end of last year and Coupang's release of its own investigation results.
There are also projections that management expense burdens will increase to respond to various regulations and strengthen cybersecurity. Citigroup lowered its target price for Coupang Inc. from $35 to $28. Citigroup said that considering stronger security systems and user compensation plans, an expense burden of about 1.7 trillion won could arise.
Some investors worry 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. The company's decision to release the findings domestically without government consultation sparked controversy, and analysts said the move appeared aimed at addressing the possibility of local sanctions.
Class-action lawsuits against Coupang Inc. are gaining momentum not only in Korea but also in the United States. Local law firm Hagens Berman filed a class-action suit on the 24th of last month (local time), alleging disclosure violations and poor management. Coupang shareholders in Korea also filed their first class-action suit in a U.S. court on Jan. 7 through the WitherPeople Law Office.
Meanwhile, as Coupang began issuing compensation coupons, it reignited negative public opinion. Coupang decided to give a 50,000 won purchase voucher per person to 33.7 million members affected by the data leak, but the voucher amount and composition drew a wave of criticism as "promotional coupons."
Moreover, because the purchase voucher is valid for only three months and can be used only at limited places, most consumers reacted by calling it "grandstanding" and a "cosmetic compensation plan." According to a voucher manual distributed internally by Coupang, the use period runs through Apr. 15, 2026, and it expires automatically if not used within the period.
On the 15th, in front of Coupang's headquarters in Songpa District, Seoul, 135 civic groups held a news conference to "boycott Coupang coupons." Some argued that the automatic application of Coupang coupons infringes on consumers' right to choose.
Meanwhile, attention is on whether the so-called "Talpang" trend—leaving Coupang—will continue after this incident. According to app analytics firm Mobile Index, Coupang's daily active users (DAU) fell about 19% in a month, from 17.99 million on Dec. 1, 2024, to 14.59 million on Dec. 31.