Coupang Faces Government Criticism Over Unilateral SEC Disclosure (Image supported by ChatGPT)
SEOUL, Dec. 31 (Korea Bizwire) — Coupang disclosed the results of its controversial internal probe into a massive data breach directly to U.S. regulators without prior coordination with the South Korean government, according to filings reviewed Tuesday.
In a submission to the U.S. Securities and Exchange Commission dated Monday, the U.S.-listed e-commerce giant said that while unauthorized access had occurred to roughly 33 million customer accounts, the perpetrator stored only about 3,000 instances of limited data, which it said were neither shared with third parties nor retained.
The disclosure mirrored the findings Coupang announced publicly on Dec. 25, despite the results not having been independently verified by law enforcement.
The filing has drawn sharp criticism from Seoul. Bae Kyung-hoon, deputy prime minister and head of a pan-government task force investigating the breach, said the disclosure had not been agreed upon in advance and accused the company of acting with “malicious intent.”
In its SEC filing, Coupang did not clarify that the investigation was conducted internally, nor did it include the South Korean government’s position.
Instead, it attached an English translation of a prior statement asserting that the probe had been carried out in cooperation with authorities at the government’s direction — a claim disputed by officials.
Coupang’s data breach undetected for five months, triggering customer alarm (Yonhap)
The company included standard cautionary language noting that investigative findings could change. It also disclosed a compensation package worth 1.685 trillion won, or about $1.2 billion, though the plan has been widely criticized by consumer and civic groups in South Korea as misleading and promotional.
Analysts and officials have suggested that Coupang’s decision to press ahead with the disclosure — despite government objections — was aimed at containing potential damage to its stock price and limiting legal exposure, including the risk of shareholder lawsuits tied to delayed or incomplete disclosures.
On Monday, shares of Coupang Inc., listed on the New York Stock Exchange, closed down 1.35 percent at $24.13.
Ashley Song (ashley@koreabizwire.com)
