Coupang files lawsuits against 620 bln-won fine over data leak

E-commerce giant Coupang Corp. has challenged a 620 billion won ($462 million) fine handed down by South Korea's data protection agency, according to sources. The fines were imposed in June by the Personal Information Protection Commission for a massive data breach that affected over 37 million users. The fine breaks down to 423.6 billion won for the data breach itself and an additional 201.1 billion won for unauthorized collection of user activity data and other violations, making it the largest fine ever imposed on a single company by the regulator.

The violation came to light after a November data leak exposed personal information of around 37.5 million users, including Coupang members and others. The Personal Information Protection Law allows companies to be fined up to 3% of their annual sales, but sales unrelated to the violation can be exempted. Coupang's annual sales averaged 36 trillion won over the past three years.

The company's large data breach has also fueled tensions between Seoul and Washington, as some U.S. officials and lawmakers questioned whether the Korean unit of the U.S.-listed Coupang Inc. was receiving fair treatment during the investigation.