In connection with Coupang's massive personal information leak, the Consumer Dispute Settlement Commission for the first time recognized Coupang's liability for damages.
The Korea Consumer Agency (KCA) Consumer Dispute Settlement Commission said on the 31st that it decided, in the collective dispute mediation case over Coupang's personal information leak, that "Coupang should compensate each applicant with 100,000 won in cash or 100,000 won in Coupang Cash."
Earlier, in December last year, 50 Coupang consumers applied for collective dispute mediation, seeking damages for the personal information leak. After opening collective dispute mediation procedures in April this year and holding two mediation sessions, the commission issued its mediation decision on the 22nd.
The commission determined that Coupang is liable to compensate for damages for consumers' emotional distress caused by the personal information leak. ▲It cited as key grounds the leak of information closely tied to privacy, including members' names, emails, and addresses, as well as shared entrance passwords and order histories.
It also cited as reasons for recognizing liability ▲that a hacker siphoned information over a prolonged period from April to November last year and even sent emails directly notifying some customers of the leak, confirming the possibility of actual misuse ▲and that although Coupang claims there is no possibility of additional leaks, it is difficult to conclude that definitively.
The scope and amount of damages were decided by comprehensively considering that, in past large-scale personal information leak cases, courts generally recognized damages of around 100,000 won and the sensitivity of the leaked information. To increase acceptance of the mediation, applicants may receive payment in Coupang Cash instead of cash if they prefer.
If Coupang accepts this mediation decision, the commission plans to proceed with related procedures, such as the submission of a compensation plan, so that the same compensation can be provided to victims who did not participate in the mediation process.
The Coupang personal information leak occurred in November last year. A government probe found that the personal information of about 37.55 million people, including members and nonmembers, was leaked. The Personal Information Protection Commission last month determined that Coupang violated obligations for safety measures under the Personal Information Protection Act and other provisions, imposing a penalty surcharge of 624.681 billion won and fines of 1.68 million won.