Science minister calls for Coupang’s cooperation with gov’t probe

Minister of Science and ICT Bae Kyung-hoon, right, speaks at the National Assembly’s Science, ICT, Broadcasting and Communications Committee in western Seoul on Dec. 31. [NEWS1]

 
Science Minister Bae Kyung-hoon on Wednesday condemned e-commerce giant Coupang for failing to faithfully cooperate with the government in an ongoing investigation into its massive data leak.
 
The remarks come after Coupang, citing its own investigation, claimed the breach had only affected some 3,000 user accounts, instead of over 33.7 million it initially reported late last month.
 
 
Coupang argued its investigation had been conducted in close consultation, if not under supervision, of the government, but Seoul quickly rejected Coupang’s claims, calling them a “unilateral” conclusion of a still ongoing investigation.
 
“Coupang says only 3,000 accounts were leaked and later deleted, but this is an extremely reckless remark,” Bae said, noting that the company is directly quoting the suspect’s testimony.
   
“While they claim that information from 3,000 accounts was deleted, the data can still be stored somewhere. If it is kept on a cloud platform, it is even harder to trace,” Bae said, adding that such information could be used for cyberattacks.
 
Bae said although the government asked Coupang to preserve relevant data, the company allowed website access logs to be deleted over a five-month period, which constitutes a violation of the law.
 

A Coupang logo is seen in this illustration taken on Feb. 11. [REUTERS/YONHAP]

 
“Coupang should have disclosed fact-based investigation findings or plans for compensation. We urge the company to faithfully fulfill its role as the subject of the investigation,” he added.
 
“If the investigation uncovers any problems, we plan to impose punitive measures to set an example,” the minister said.
 
During the session, Lee Jae-gul, a legal official at Coupang, said the company was contacted by three officials from Korea’s spy agency while retrieving a laptop owned by a former employee suspected of being behind the data leak from a river in China.
 
Lee said while Coupang did not disclose the results of its own investigation under the direction of the National Intelligence Service (NIS), the agency was aware of the content of the announcement.
 
“We learned that the laptop was underwater from the suspect’s explanation, and we immediately shared the information with the NIS,” Lee said, noting that the agency strongly insisted on retrieving it.
 
Lee added that Coupang made a unilateral announcement due to false information circulating in Korea, saying the company felt it was necessary to inform the public that the data had been retrieved to prevent secondary damage.
  
The head of Korea’s Fair Trade Commission (FTC), meanwhile, said the antitrust regulator could consider temporarily suspending the business operations of Coupang over a recent large-scale consumer data breach.
 
“With a joint public-private investigation currently underway, authorities are examining what information has been leaked, what damage is expected and whether Coupang can take appropriate measures to compensate victims,” FTC Chairman Ju Biung-ghi said.
 
“If necessary, we can consider penalties up to and including a suspension of business operations,” he added.
 
Rep. Hwang Jung-a of the ruling Democratic Party said public anger is mounting amid growing calls for the government to suspend Coupang’s operations.
 
Prompting further public anger, Coupang announced a claimed 1.69 trillion won ($1.17 billion) compensation package for all its users, which has been rejected by many as an “attempt to turn the incident into a promotional event” as the 50,000 won per person package consists largely of vouchers that require subscription and fresh, considerable purchases.
 
The U.S.-listed firm has also been suspected of seeking to prevent, if not bar, users from seeking further legal compensation through its compensation program.
 
When asked, Harold Rogers, interim CEO of Coupang, the Korean unit of Coupang, said that was not the case.
 

Harold Rogers, interim Coupang CEO, speaks at the National Assembly’s Science, ICT, Broadcasting and Communications Committee in western Seoul on Dec. 31. [LIM HYUN-DONG]

 
“There are no [such] conditions in those vouchers, and there will not be any conditions in those vouchers,” he told the parliamentary hearing.
 
Rogers added the compensation plan will not be used as grounds to seek a reduction in potential damages should claims be filed in the future.

Yonhap