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Government Requests Investigation into Coupang's 'Order to Preserve Materials' Violation: "Will Hold Them Fully Accountable"

Follow-up to National Assembly Joint Hearing:
Government-Wide Task Force Launched for Comprehensive Investigation of Legal Violations

Government Requests Investigation into Coupang's 'Order to Preserve Materials' Violation: "Will Hold Them Fully Accountable"

The Ministry of Science and ICT has decided to immediately request a police investigation regarding Coupang's violation of the order to preserve materials related to an information and communications network incident. The government views Coupang's massive personal data breach and its attempts to evade responsibility, as revealed during the National Assembly's joint hearing, as a serious matter and has launched a rigorous, government-wide response.


On December 31, the government announced that, through the joint hearing on Coupang held at the National Assembly on December 30 and 31, it has recognized the gravity of the multifaceted social issues raised, including the network breach and large-scale personal data leak, the overwork-related deaths of platform workers, and unfair trade practices targeting partner vendors. The government stated it would pursue follow-up measures at the inter-agency level for any violations of the law.


In particular, the government noted that Coupang's lukewarm and passive explanations, as well as its attempts to downplay the damage and avoid responsibility during the hearing, have heightened public distrust. The government made clear it will not overlook these actions and will use every legal means available to hold the company accountable.


The Ministry of Science and ICT, the Personal Information Protection Commission, the National Police Agency, the Financial Services Commission, and other relevant ministries and investigative agencies will cooperate to thoroughly investigate the personal data breach, which is estimated to involve more than 33 million records, and will transparently disclose the results to the public. In this process, the Ministry of Science and ICT plans to refer Coupang to the police for investigation regarding its violation of the order to preserve materials related to the information and communications network incident, as identified by the joint public-private investigation team.


By ministry, the Ministry of Science and ICT will investigate the cause of the incident and Coupang's security issues; the Personal Information Protection Commission will examine the scale and scope of the data breach and any violations of the Personal Information Protection Act, including ISMS-P; the Financial Services Commission will review the possibility of fraudulent payments and high-interest loan practices; and the National Police Agency will analyze seized materials, check for evidence destruction or manipulation, and pursue suspects through international cooperation.


Regarding user protection, the Fair Trade Commission will review whether information was misused, the risk of financial loss to consumers, and Coupang's measures for damage recovery. The Fair Trade Commission and the Korea Communications Commission will investigate whether the complicated withdrawal procedures that caused inconvenience to users constitute prohibited acts under the E-Commerce Act and the Telecommunications Business Act, and will take strict action if any violations are found.


In the areas of labor, safety, and logistics, the Ministry of Employment and Labor will promptly investigate allegations of industrial accident cover-ups and conduct a fact-finding survey on measures to protect night workers' health rights. The Ministry of Land, Infrastructure and Transport, together with the National Assembly's Euljiro Committee, will prepare measures to implement social agreements for Coupang worker protection and will inspect the working conditions and safety management practices of Coupang and its logistics subsidiaries, taking legal action if any violations are found.


In the areas of market order and internal transactions, the Fair Trade Commission will investigate whether Coupang abused its dominant market position or engaged in unfair practices against suppliers, and will also review whether Chairman Kim Beomseok should be designated as the same person under relevant regulations. The National Tax Service will verify suspicions of tax evasion related to Coupang and Chairman Kim Beomseok, as well as the legitimacy of internal transactions.


Choi Minhee, Chairperson of the National Assembly's Science, ICT, Broadcasting, and Communications Committee, stated, "For Chairman Kim Beomseok, who should be held accountable, to be absent and instead put forward a powerless foreign representative is an act of disregard for the public and the National Assembly. The National Assembly will work with the government to pursue all possible measures, including a parliamentary investigation and suspension of operations."


Vice Prime Minister Bae Kyunghoon emphasized, "Coupang should not try to mislead public opinion but should sincerely cooperate with the government's investigation and voluntarily work to resolve the many outstanding issues. The entire government will act as one team to leave no suspicion unaddressed and respond thoroughly to the end."


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