Even After the Breach, Coupang Users Remain Loyal: "Annoyed, But Too Convenient to Leave"

Coupang DAU Returns to Pre-Leak Level of 16 Million
Estimated Payment Volume Stays at 121 Billion Won, Near Pre-Incident Lows
Competitors Like Kurly and SSG.com See Some Gains
Many Consumers Still Reluctant to Leave the Wow Membership Ecosystem

Yonhap News Agency

Contrary to expectations that a wave of "Talpang" (mass withdrawal from Coupang) would follow last November's massive personal data breach, this did not materialize. While competing e-commerce companies such as Kurly and SSG.com have launched new membership programs to capture Coupang's dawn delivery customers and are seeing some benefits, Coupang's user base remains robust.

According to Mobile Index by data tech company IGAWorks on January 17, Coupang's daily active users (DAU) recovered to 16.01 million, returning to the pre-incident level of around 16 million. This is the first time in about 40 days since December 7, when Coupang's DAU was at 16,103,500. Immediately after the breach, the number of users dropped to the 14 million range by the end of last month, showing signs of a potential exodus. However, the number gradually climbed back into the 15 million range and has now returned to its previous level.

Estimated payment amounts have also remained at levels similar to those before the breach, despite daily volatility. Before the incident, estimated daily payments ranged from 120 billion to 180 billion won. Immediately after the breach, they stayed between 120 billion and 160 billion won, and as of January 17, they were fluctuating around 121 billion won.

There are also notable differences in response by age group. For users in their 30s, the estimated payment amount dropped from the mid-to-high 30 billion won range before the breach to the high 20 billion to low 30 billion won range after the incident. For users in their 40s, the figure fell from the low 40 billion won range to the mid-to-high 30 billion won range. In contrast, users in their 20s and younger maintained payment levels in the low 10 billion won range both before and after the breach.

The biggest reason is convenience. Last month, Kurly's monthly active users (MAU) hit a record high of 4.49 million, and as of December, cumulative subscribers to its paid membership service "Kurly Members" increased by 94% year-on-year. SSG.com also saw its average daily new visitors surge by 330% from January 1 to 15 compared to the same period last year, while first-time SSG delivery membership orders increased by 53%. Although disappointed consumers flocked to competitors after the incident, some appear to have concluded that there is no real alternative to Coupang's "Rocket Delivery" and the Wow membership ecosystem.

Coupang's compensation in the form of 50,000 won worth of shopping vouchers also helped stem the "Talpang" movement. On January 15, Coupang provided four types of vouchers to members affected by the data breach: a 5,000 won voucher for all Coupang products, a 5,000 won voucher for Coupang Eats (its food delivery platform), a 20,000 won voucher for Coupang Travel (its travel platform), and a 20,000 won voucher for Alux (its luxury beauty and fashion platform). The DAU, which had fallen to 14.58 million by year-end, rebounded to 15.99 million on the day the vouchers were distributed. After the 50,000 won coupon was issued, the number of daily new installations on January 16 jumped to 34,700, up sharply from 19,700 the previous day. Before the incident, daily new installations hovered between 10,000 and 20,000, and even after the breach, remained around 10,000, except for January 1-3, when they briefly rose to 40,000.

Another factor is that Korean consumers have become accustomed to repeated data breaches by domestic companies. An industry insider commented, "Some consumers are announcing their withdrawal from Coupang, but it is not easy to give up the convenience of Rocket Delivery," adding, "This incident is a symbolic case that demonstrates how powerful the 'lock-in effect' can be in platform businesses."

Some experts urge caution. They point out that consumers may be staying with Coupang not out of loyalty, but because they are considering future class action lawsuits and compensation. On social media, advice such as "If you withdraw from Coupang, it may be harder to prove damages," and "Keep your account until compensation plans are finalized," is being widely shared.