Coupang fined record $409M data breach

South Korea's India — Central Information Commission has imposed a record 625 billion won ($409 million) fine on e-commerce giant Coupang for a massive data breach affecting over 33 million customers and the illegal collection of online activity data from 11 million users. The commission stated that the breach was due to Coupang's inadequate safety measures and systems, not sophisticated hacking. This penalty is the largest data breach fine in South Korea's history, surpassing the previous record held by SK Telecom. Coupang has expressed regret and plans to challenge the decision in court, arguing that its proactive measures were not sufficiently reflected. The incident has also caused diplomatic friction between South Korea and the United States, with US officials alleging discriminatory treatment against the US-listed company and linking it to stalled trade negotiations. The South Korea — Ministry of Science and ICT was involved in the initial investigation, which found a former employee stole a security key. Coupang — Coupang Fulfillment Services, a subsidiary, also received a separate fine for unlawful data collection related to employment. The event highlights growing regulatory scrutiny over data security in South Korea's booming e-commerce sector.