Korea Consumer Organizations Council Strongly Criticizes "Concerns About Destruction of Evidence"
Raises Issue with Coupang Announcing Results Without Consulting Government During Ongoing Investigation
Urges Bom Kim's Attendance and Introduction of Punitive Damages System
In response to Coupang's massive personal information leak, a consumer group has strongly criticized Coupang's internal investigation results and called on the government to impose the highest level of sanctions.
On December 26, the Korea Consumer Organizations Council issued a statement saying, "The internal investigation results disclosed by Coupang on December 25 ignore the national investigative system and constitute an unacceptable act that raises concerns about the destruction of evidence," adding, "The government should impose the highest level of sanctions on Coupang, including suspension of business operations."
Previously, Coupang had not issued an official apology or presented any responsible solution to consumers for a month after the personal information leak occurred. Then, the company abruptly released the results of an internal investigation targeting a former employee. Coupang explained that the former employee had stored customer information from about 3,000 accounts out of a total of 33 million accounts, but claimed that there was no external leak. The stored information included customer names, phone numbers, addresses, order information, and 2,609 common entrance access codes. The company also stated that it had recovered the laptop, which the perpetrator had destroyed and discarded in a stream, and that all stored data was deleted after the breach was discovered.
The Council took issue with the fact that Coupang announced the results of its internal investigation without consulting relevant authorities while a joint public-private investigative team had been formed and a police investigation was underway.
The Council stated, "Coupang should have secured digital forensic evidence, cooperated with law enforcement, and worked to apprehend the perpetrator, but instead handled the matter internally." The statement continued, "It is a serious issue that raises concerns about destruction of evidence for a company under investigation to deploy divers to recover the laptop in an attempt to diffuse public criticism." The Council further urged, "The government must make every effort to hold not only the individual responsible for the leak but also Coupang's personal information protection officer criminally accountable."
The Council also demanded, "Coupang must immediately stop any attempts to influence, downplay, or cover up the investigation through lobbying or other means, and Bom Kim, the Chairman, must personally attend the comprehensive hearing starting on December 30 to offer a convincing apology and present compensation measures."
Furthermore, the Council called on the government to "consider the maximum sanctions allowed under current law, such as suspension of business operations and cancellation of courier business registration, and to improve the system by introducing class action lawsuits and punitive damages to ensure companies are held strictly accountable."
The Council pointed out, "While many consumers are already withdrawing from or reducing their use of Coupang, the 'lock-in effect' due to convenience makes it difficult for them to leave easily." The statement added, "If the government hesitates to impose strong sanctions citing consumer inconvenience or small business damages, Coupang's arrogant behavior will inevitably be repeated." The Council concluded, "The government should establish supplementary measures to minimize the impact on consumers and small businesses from strong actions such as suspension of business, and set a precedent to prevent recurrence."
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