Financial Authorities Initiate Sanctions Against Coupang Pay and Coupang Financial, Aiming for Completion Within the Year

Financial authorities have initiated sanction procedures against Coupang Pay and Coupang Financial.

According to financial authorities on Wednesday (June 17), the Financial Supervisory Service (FSS) plans to send inspection reports to both companies soon.

Following this, the authorities will receive explanations from the companies, determine the level of sanctions, issue a pre-notification of the intended measures, and refer the matter to the Sanctions Review Committee.

Once the proposed sanctions are forwarded to the Financial Services Commission (FSC), the final level of disciplinary action will be confirmed.

At this stage, it is difficult to estimate the schedule for the Sanctions Review Committee.

However, the FSS has internally set a goal to complete the entire process, including the review by the FSC, within this year.

Coupang Pay is under investigation by financial authorities regarding personal data breaches, while Coupang Financial is being scrutinized over high-interest loans.

Following the leak of over 33 million personal data records from Coupang last November, the FSS has been investigating whether payment information was also compromised at its subsidiary, Coupang Pay, which is linked via a "One ID, One Click" structure.

Regarding Coupang Financial, the authorities are examining whether the structure and risk disclosures of its "Coupang Seller Growth Loan," which is offered to vendors at an interest rate of up to 18.9% per annum, were appropriate.

The FSS completed on-site inspections of both companies in January and launched a full-scale investigation.
※ Please note: This article was translated by AI and may contain errors.