Seoul: The head of South Korea's data protection regulator has urged Coupang to propose compensation that is satisfactory for victims of a significant data leak, amid widespread disapproval of the online retailer's current offer of vouchers and discounts.
According to Yonhap News Agency, Song Kyung-hee, head of the Personal Information Protection Commission, made this demand during a parliamentary hearing concerning Coupang's data breach, which impacted 33.7 million users, approximately two-thirds of South Korea's population. Song emphasized the necessity of a compensation strategy that victims perceive as just, stating that the responsibility of proof rests with the company.
Coupang's plan, announced on Monday, has faced criticism due to its offer of 50,000 won (US$35) in coupons and discounts to each affected user. Critics argue that the plan is insubstantial because it restricts customers to spending only 5,000 won on Coupang's main platform, with the remaining 45,000 won to be used on other commerce platforms, including one specializing in luxury goods. These measures are criticized for potentially encouraging customers to increase their spending on Coupang's various platforms.
When questioned about the potential for a collective lawsuit against Coupang, Song acknowledged the existence of a clause in the personal data protection law regarding such lawsuits. However, she pointed out that the law lacks provisions for monetary damages, highlighting the need for a more defined legal framework.