[The Editors' Verdict]How to Prevent Another Coupang Incident

Despite Coupang's Data Breach, User Numbers Remain High
Convenience Chosen Over Data Leak Concerns
Promoting Competition in Retail for More Consumer Choices

"Still, I can't live without Coupang."

During the coverage of "Coupang's Artificial Intelligence (AI) Dominance," a source interviewed said that even after Coupang's massive customer data breach, they simply lowered their credit card limit and continued using the service. For this feature, The Asia Business Daily analyzed a self-proclaimed "Coupang addict's" purchase history over a month and identified consumption patterns. As a working mother, she ordered not only processed foods and daily necessities from Coupang, but also her son's school supplies and golf equipment for her hobbies. This is the type of information with the highest "commercial value" for companies in need of marketing insights.

The personal data of 33.7 million Coupang customers that was compromised included not only names, phone numbers, and delivery addresses, but also order information. This goes beyond simple "personal information"-it is the most valuable data, as it directly reveals individual consumption tendencies.

President Lee Jaemyung, during a recent briefing from the Personal Information Protection Commission, commented on the Coupang incident, stating, "Companies should feel that 'if they make a mistake, they could go bankrupt,'" and called for strong economic sanctions. It is not surprising that the government and political circles have announced penalties for companies failing to protect customer data, and that public outrage has grown. There is a clear need to demonstrate just how great the cost can be when companies fail to safeguard customer information.

However, it is problematic if the solution is limited to "strengthening regulations." Even after the Coupang incident, the number of users increased. This is not because the public lacks security awareness, but because there are virtually no alternatives to Coupang. With fast delivery, an overwhelming product selection, competitive prices, and convenient payment and returns, consumers are unwilling to give up convenience despite concerns about personal data leaks.

Coupang is virtually the only online platform capable of next-morning delivery, thanks to its nationwide logistics centers and large-scale direct purchasing. Other early-morning delivery services like Kurly and Oasis focus mainly on fresh food and groceries. Domestic e-commerce platforms such as Naver Shopping and Gmarket, as well as China's Aliexpress, are open markets connecting sellers and buyers, resulting in longer delivery times. Large supermarkets can offer fast delivery of a wide range of products by using their nationwide stores as logistics centers, but regulations prohibiting late-night operations make next-morning delivery impossible.

What is most needed now, in the absence of a true rival to Coupang, is the restoration of competition in the retail market. Only when consumers can freely choose alternatives will companies truly fear losing customers. President Lee Jaemyung's message that "companies could go bankrupt if they make mistakes" is more powerful in the context of potential market exits than in the size of fines. In a competitive market, security becomes a key strength, as consumers can move to safer platforms.

Moreover, even the strongest regulations cannot guarantee perfect security. Hacking continues to evolve, and the risk of insider leaks never disappears. The Coupang incident is both a reminder of the importance of corporate data protection and a warning about the fragile competitive structure of Korea's retail market. A platform structure that approaches monopoly is, in itself, a security risk. The way to prevent another Coupang incident is to offer more choices.