Coupang Hit With Record-High Fine: Will It Reignite 'U.S.-Korea Tensions'?

[Anchor]

A record-high fine has been imposed on Coupang following a massive personal data breach.

We are joined by reporter Choi Seung-hoon to discuss what went wrong and what issues remain to be addressed.

Q. A record-high fine... What is the reason?

[Reporter Choi Seung-hoon: Yes, this fine is equivalent to about one year of Coupang's operating profit. Generally, fines are larger when revenue is higher. SK Telecom, which was fined 130 billion won, had revenue of around 17 trillion won, whereas Coupang's revenue is 49 trillion won. Fines can be up to 3% of the average revenue over three years. First, revenue unrelated to the incident is excluded, and then the severity of the case is assessed. While Coupang did offer compensation coupons, which served as a mitigating factor, it was pointed out that their basic management was negligent and the scale of the leak was significant. However, it is understood that they avoided the highest level of severity in the assessment. Civic groups have argued that the fine is woefully insufficient, amounting to only 16,000 won per victim.]

Q. Will 'U.S.-Korea tensions' be reignited?

[Reporter Choi Seung-hoon: It has been reported that after this incident occurred, Coupang's U.S.-based parent company engaged in extensive lobbying efforts targeting the White House and the U.S. Congress. There were claims in the U.S. Congress that American companies were being discriminated against, and U.S. Vice President Vance even brought up the topic of Coupang to Prime Minister Kim Min-seok. The Personal Information Protection Commission stated that since most of Coupang's revenue is generated in Korea, they did not take into account the company's nationality or diplomatic relations, even if it is a U.S. company. The government plans to explain the details to the U.S. side, maintaining that this measure was a decision made in accordance with domestic law and due process.]

Q. What investigations into 'Coupang allegations' remain?

[Reporter Choi Seung-hoon: First, there are still unresolved issues regarding Chairman Kim Bom-suk. We were the first to report on circumstances suggesting that Chairman Kim attempted to cover up the 2020 death of Jang Deok-jun, who worked at a logistics center. Investigations by the Ministry of Employment and Labor and the police have not yet concluded. The National Tax Service, which conducted a tax audit on Coupang's logistics subsidiary last year, has also been investigating Coupang's headquarters since May 28 as an extension of that process. Additionally, the Korea Fair Trade Commission is investigating allegations that its affiliate, Coupang Eats, pressured partner restaurants to keep food prices the same as or lower than those of competitors. In April, the Fair Trade Commission designated Chairman Kim Bom-suk as the de facto head of Coupang, or the 'controlling person,' but Coupang is challenging this in court, so it is expected to take quite some time before these matters are resolved.]
※ Please note: This article was translated by AI and may contain errors.