South Korean Online Platforms Carry Out Emergency Reviews Of Data Protection Status, Coupang Expected To Face Major Fines After Data Breach

Seoul: South Korean online platforms were seen carrying out emergency reviews of their data protection status, with Coupang Inc. widely expected to face major fines following a data breach, sources said on Monday. On Saturday, the U.S.-listed e-commerce giant said personal information of 33.7 million customers has been compromised, far higher than the 4,500 cases it initially believed to have been affected.

The figure indicates that nearly all Coupang users may have had their personal information, including names, phone numbers, email addresses and delivery details, leaked, reports Yonhap news agency. Coupang, which provides overnight delivery of fresh food and daily necessities, is one of the most widely used shopping platforms in South Korea with 34 million monthly active users in November, up 0.68 percent from a month earlier.

Under South Korea's privacy law, companies with a data breach can face fines of up to 3 percent of their revenue. SK Telecom Co., the country's top mobile carrier, received a fine of 134.8 billion won (US$91.7 million) after a breach in April. "We carried out an emergency internal security check over the weekend," said an official from Gmarket, another local shopping platform, adding the company is also considering additional steps. An official from SSG.com Corp. told Yonhap News Agency the company has strengthened routine and on-the-spot inspections amid a series of breaches in the telecommunications and financial sectors.

"Currently, it is not known exactly how the data was leaked (at Coupang), and we are conducting an overall inspection, including internal data controls," another e-commerce industry official said. "We plan to take corresponding measures once the investigation reveals more details. Experts said the latest leak indicates that Coupang had a fundamental loophole in its operating system and internal controls rather than a shortage of relevant spending.

According to the Korea Internet & Security Agency, Coupang invested 1.9 trillion won in information technology this year, including 89 billion won in information protection. The figure was the third highest among South Korean companies, following Samsung Electronics Co. and KT Corp.

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