Bom Kim and Coupang Inc. executives on the 27th laid out their position on the large-scale personal information leak, its impact on results, and the outlook during last year's earnings conference call. Although growth slowed in the fourth quarter last year, they expected a gradual recovery starting in the first quarter this year.
Before the results, Kim and the executives spent about six minutes explaining their position on the personal information leak. Kim said, "I once again sincerely apologize for causing concern and inconvenience to customers due to the personal information leak that occurred last year."
This was the first time Kim apologized in his own voice after the large-scale personal information leak on Nov. 29 last year. A month after the incident, on Dec. 28 last year, he issued a written apology, which drew criticism at the time as a delayed response.
Kim said, "Customers are the only reason Coupang exists, and we work every day to earn their trust," adding, "There is nothing more serious than failing to meet customer expectations. We know well that we must do better, and we will make sure to do so."
After Kim's remarks, Harold Rogers, chief legal officer and acting head of Coupang's Korea unit, explained the circumstances and investigation findings of the personal information leak and measures to prevent a recurrence.
Rogers, the chief legal officer, said, "A former Coupang employee accessed about 33 million customer accounts without authorization, and we confirmed that about 3,000 of those accounts' information was stored," adding, "The accessed information was limited to basic information such as names, emails, phone numbers, delivery addresses, and some order histories, and did not include sensitive information such as financial information, payment information, or passwords."
He continued, "A forensic investigation with an external security firm found no evidence that the data was leaked or misused externally, and there were no signs of related information circulating on the dark web." Coupang added that the access path had already been blocked and additional security strengthening measures were implemented.
Rogers said, "The results of the ongoing investigation and whether penalties or other measures will follow have not been finalized," adding, "We will continue to improve systems and strengthen security measures to prevent a recurrence." Kim said, "We are dedicated to working closely with government authorities."
Kim then emphasized growth potential across key markets including Korea, Taiwan, and Japan, saying the company will continue mid- to long-term investments. He said, "We are expanding innovation and automation to improve customer experience and reduce expense, and we are continuing to invest in Rocket Delivery, direct purchasing, and logistics infrastructure overall."
He added, "The Taiwan business is maintaining strong growth based on expanding product categories and strengthening last-mile logistics capabilities, and we also see growth potential in businesses such as Korea's Coupang Eats and Japan's RocketNow food delivery," saying, "We will continue to invest for long-term growth and to enhance the customer experience."
Coupang Inc. said growth slowed in December last year due to the fallout from the personal information leak, but it has been showing a gradual recovery this year. Coupang Inc.'s fourth-quarter revenue last year was 12.8103 trillion won ($8.835 billion), up 15.3% from a year earlier, but operating profit came in at 11.5 billion won ($80 million), down 97%.
Gaurav Anand, Coupang Inc.'s chief financial officer (CFO), said, "First-quarter revenue in the Product Commerce (Rocket Delivery and Fresh) institutional sector will grow 5% to 10%," adding, "We plan to present annual growth guidance in a future quarter after we monitor the recovery trend."
Meanwhile, Coupang Inc.'s share price is rebounding in U.S. after-hours trading. The stock, which closed at $18.71, up $0.35 (1.91%) from the previous session, plunged 3.8% right after the results were released. But after the conference call, including Kim's apology, the losses narrowed, and as of 10 a.m., it had turned higher.