Regulator says Coupang should come up with acceptable compensation plan for data leak victims

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Regulator says Coupang should come up with acceptable compensation plan for data leak victims

Song Kyung-hee, far right, the chairperson of the Personal Information Protection Commission, speaks during a parliamentary hearing over e-commerce giant Coupang's massive data leak at the National Assembly in western Seoul on Dec. 31. [YONHAP]

Song Kyung-hee, far right, the chairperson of the Personal Information Protection Commission, speaks during a parliamentary hearing over e-commerce giant Coupang's massive data leak at the National Assembly in western Seoul on Dec. 31. [YONHAP]

 
The head of Korea's data protection regulator said on Wednesday that Coupang should come up with compensation plan that is acceptable to victims of its massive data leak amid strong backlash against the online retailer's offer of vouchers and discounts.
 
Song Kyung-hee, the head of the Personal Information Protection Commission, made the call during a parliamentary hearing over the company's data breach that affected 33.7 million users — around two-thirds of Korea's population.
 

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“It is very important to establish a compensation plan that makes victims feel satisfied. The burden of proof lies with the company,” said Song when asked about Coupang's plan to offer 50,000 won ($35) worth of coupons and discounts to each affected user.
 
The plan, unveiled on Monday, has drawn criticism because each customer is allowed to spend only 5,000 won at the online retailer's main platform. The remaining 45,000 won must be used at other commerce platforms, including one for luxury goods.
 
Critics say such measures may be aimed at prompting customers to spend more on Coupang's other platforms.
 
When asked about the need for a collective lawsuit against Coupang, Song noted that while the personal data protection law has a clause on such lawsuits, it does not address monetary damages, pointing to the need for a clearer legal basis.

Yonhap
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