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Has Coupang outgrown its management? Deaths, data breaches, legal woes suggest yes.

Published: 23 Nov. 2025, 19:33

Coupang delivery trucks are seen at a logistics center in Seoul on Nov. 21. [YONHAP]

Customer data leak, employee deaths and allegations of prosecutorial pressure — Coupang faces mounting criticism amid a series of high-profile scandals that cast a shadow over its rapid growth and prompt calls to strengthen its ethical management and improve labor conditions.

A male Coupang employee in his 30s died on Friday at a Coupang logistics center in Hwaseong, Gyeonggi. The worker collapsed in a cafeteria at the company’s Dongtan 1 Center at around 10:30 p.m. and was taken to a hospital in cardiac arrest, but did not survive.

“We extend our deepest condolences and will provide full support to the bereaved family,” said Coupang Fulfillment Services, the logistics affiliate of Coupang, adding that the worker was known to have had "a preexisting health condition." In March and again in August, workers in their 50s died at Coupang centers in Anseong and Yongin, respectively.

The company is also under fire over a personal data breach. On Thursday, Coupang disclosed to authorities that the names and email addresses of some 4,500 customers had been leaked. A security incident report obtained by Rep. Choi Min-hee’s office from the Korea Internet & Security Agency showed that the unauthorized access occurred on Nov. 6 at 6:38 p.m., but Coupang did not become aware of the breach until 10:52 p.m. on Nov. 18 — 12 days later — after a customer complaint. The company also experienced data breaches in 2021 and 2023.

The company faces further scrutiny after a special prosecutor was appointed to investigate allegations of external pressure in a case involving unpaid severance pay. Prosecutor Eom Hee-jun is accused of having pressured then-Bucheon District Prosecutor Moon Ji-seok — now chief prosecutor in Gwangju — to drop the case involving Coupang Fulfillment Services last April.

Despite leading the e-commerce sector with a 22.7 percent market share, Coupang’s internal management has struggled to keep up with its scale. Since its founding in 2010, the company has innovated retail logistics with next-day and overnight delivery services, and it was listed on the New York Stock Exchange in 2021. Revenue surpassed 41 trillion won ($28 billion) last year, and projections suggest it could reach 50 trillion won this year. The company has approximately 100,000 directly employed workers and over 21 million users.

Deliver workers hold a rally in Gwanghwamun, central Seoul, on Nov. 23, urging for better working conditions. [NEWS1]

Deliver workers hold a rally in Gwanghwamun, central Seoul, on Nov. 23, urging for better working conditions. The banner reads, ″Life over speed.″ [NEWS1]

In response to questions about the controversies, Coupang said it was being cautious, noting that investigations are ongoing and that the company had no further official comment.

“Coupang has grown into a corporate giant, but its organizational structure hasn’t followed suit,” said an industry insider, who wished to remain anonymous. “Because Coupang is headquartered in the United States, its crisis response is often shaped by U.S. corporate culture, which can feel out of step with Korean expectations.”

“As Coupang’s revenue and workforce have surged, so has the need for risk management," said Lee Jong-woo, an adjunct professor of business administration at Ajou University. "But the company has remained focused on growth and market expansion, which has contributed to recurring issues. Coupang must urgently review its internal structure and communicate in a way that resonates with Korean consumers.”

Kwon Sang-jib, a professor of corporate management at Hansung University, added, “Coupang needs to bolster its social responsibility efforts, such as providing health checkups and psychological support for overnight workers.”

Coupang delivery trucks are seen at a logistics center in Seoul on Nov. 21. [YONHAP]

Meanwhile, experts are calling for stronger regulatory oversight amid a wave of personal data leaks this year. In January, GS Retail suffered a data breach affecting over 90,000 customers of its convenience store website. In February, 1.58 million records were leaked from a home shopping platform. Luxury brands were also hit: in May, Korean branches of Dior and Tiffany were criticized for late disclosure of data leaks, and both Cartier and Louis Vuitton reported breaches as well.

Other incidents occurred at SK Telecom, Yes24 and Lotte Card. According to the Personal Information Protection Commission, data breaches from public and private entities totaled over 30.38 million cases as of the end of August this year — more than double last year’s figure of 13.77 million.

The European Union imposes heavy fines on companies that leak personal data — up to 4 percent of annual global revenue or 20 million euros ($34 million), whichever is greater. In 2021, Amazon was fined roughly 746 million euros for illegally collecting personal data.

In contrast, Korea’s Personal Information Protection Act limits fines to 3 percent of a company’s revenue, excluding sales unrelated to the violation.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LIM SUN-YOUNG [[email protected]]