The first mediation decision has ordered Coupang to pay 100,000 won per person to victims of a personal data leak. The decision covers only the 50 people who applied for mediation, but because it recognizes Coupang's liability for damages, it is expected to affect compensation for all victims and the ongoing class action.
Attorneys for the victims say 100,000 won is far too little given that sensitive information such as shared entrance passwords and order histories was leaked. However, because this decision is not a court ruling, it is unclear whether Coupang will accept the mediation plan.
◇Mediation applies only to the 50 applicants
According to the Korea Consumer Agency (KCA) on the 5th, the Consumer Dispute Settlement Commission on the 31st ordered Coupang to pay 100,000 won per person in cash or Coupang Cash to the 50 consumers who applied for mediation.
The process began in Dec. last year when 50 consumers filed for collective dispute mediation seeking damages over the Coupang personal data leak. The commission found that consumers suffered mental distress due to the data leak and determined that Coupang is liable to pay consolation money.
The commission said, "Not only general personal data but also information closely tied to private life, such as shared entrance passwords and order histories, was leaked due to Coupang's data breach," and added, "A hacker exfiltrated information over a considerable period and even sent emails to some customers about the leak, revealing a real possibility of misuse."
This decision is different from a final court judgment. It takes effect only if both the mediation applicants and Coupang accept the plan. Coupang must state whether it accepts within 15 days from receipt of the decision. If both sides accept, it has the same effect as a judicial settlement.
Even if mediation is established, direct compensation is limited to the 50 people who applied for mediation. For victims who did not participate to receive compensation, Coupang would need to prepare a separate compensation plan after accepting the mediation plan.
The commission said, "If Coupang accepts the mediation plan, we will proceed with related procedures, including submission of a compensation plan, so that the same compensation can be provided to victims who did not take part in the mediation."
◇Class-action attorneys: "100,000 won is far too little"
Attorneys leading the class action on behalf of victims of the Coupang data leak argued that the compensation amount was set excessively low.
Moon Geon-il, managing attorney at law firm Illo, predicted that in civil litigation, damages of 200,000 to 300,000 won per victim could be recognized. Moon said, "The amount recognized in mediation is not large, and the recipients are only 50 people," adding, "Given this decision, mass withdrawals by civil suit participants are unlikely."
Attorney Lee Eun-woo of law firm Jihyang said, "Considering the nature of the leaked information, such as home addresses and contact details, and Coupang's response after the incident, 100,000 won is far too little," adding, "This is a case where applying punitive damages should also be considered."
Attorney Jeong Tae-won of law firm LKB Pyeongsan also said, "In past personal data leak cases, even when less information was leaked than in the Coupang case, there were instances where 100,000 won was recognized," adding, "This compensation amount was calculated conservatively."
Attorney Jeong Sang-hyeon of law office Want said, "We are currently claiming 300,000 won per victim in the civil suit," adding, "Given the scale of the harm, 100,000 won is a small amount."
◇"First recognition of Coupang's liability" … positive impact on civil suit
Separately from the amount, some say the decision could benefit the victims in the class action. Because the Consumer Dispute Settlement Commission recognized Coupang's liability for damages, the civil court could take that into account.
Lee Don-ho, managing attorney at law firm Nova, said, "We plan to cite the contents of this mediation decision in the class action," adding, "Records obtained through various investigations during the mediation process can likely be submitted to the court."
Kim Byeong-guk, managing attorney at law office Beonhwa, also said, "Since the dispute settlement body recognized Coupang's liability for compensation, it can have a favorable effect on the suit," adding, "Based on this decision, we plan to ask Coupang to proceed with the trial quickly."
However, there is also a view that Coupang is unlikely to accept the mediation plan. If Coupang accepts, other victims could demand the same level of compensation, and it could become harder to deny liability in the class action.
Attorney Kim Hyeong-gyu of law firm Doul said, "If Coupang accepts this compensation plan, the remaining victims can make the same demands," adding, "If compensation is expanded to all victims, the burden could rise significantly, so I do not think Coupang will accept it easily."
Coupang said, "We will carefully review the mediation plan from the Consumer Dispute Settlement Commission after receiving it."