Coupang logs most e-commerce consumer complaints over last four years

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Coupang logs most e-commerce consumer complaints over last four years

A text message sent to a Coupang user on Nov. 30 notifying them of a personal data leak [KIM HYUN-DONG]

A text message sent to a Coupang user on Nov. 30 notifying them of a personal data leak [KIM HYUN-DONG]

 
Coupang received more consumer complaints related to personal data over the past four years than any of its e-commerce platform rivals in Korea, with the number of cases surging particularly from June this year.
 
According to data obtained Friday by the JoongAng Ilbo from the Korea Internet & Security Agency (KISA), there were 2,355 consumer complaints involving the term “Coupang” in connection with information protection over the past four years. That figure is 10 to 20 times higher than those of competitors during the same period — 264 cases at 11st, 143 at Gmarket, 139 at Naver Shopping and 137 at WeMakePrice.
 

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Complaints related to Coupang have grown sharply each year. The total rose from 390 cases in 2022 to 685 in 2024, and this year’s total reached 888 as of November, already surpassing last year’s total — a 220 percent increase compared to the same period in 2022. Of the 888 cases this year, 682 — about 76.8 percent — involved personal data breaches, KISA said. The agency classifies consumer complaints into personal data breaches, illegal spam and hacking or viruses.
 
In contrast, complaints filed against other major e-commerce platforms have decreased or remained steady. 11st recorded 94 cases in 2022, 71 in 2023, 49 in 2024 and 50 as of November of this year. WeMakePrice had 46, 33, 42 and 16 cases over the same period. Naver Shopping, which holds the No. 2 market share, logged 34, 37, 36 and 32 cases.
 
According to the Ministry of Data and Statistics, Coupang held 22.7 percent of the online marketplace based on transaction value in 2024, followed by Naver at 20.7 percent.
 
Monthly data shows that Coupang’s complaints jumped starting in June. Cases rose from 57 in February to 66 in April, then surged to 94 in June, an increase of nearly 60 percent. The trend continued with 105 cases in July, 92 in September and 155 in November.
 
Some experts argue that “multiple warning signs were visible before the large-scale data leak, but they were overlooked instead of being thoroughly investigated,” according to Hwang Suk-jin, a professor at Dongguk University’s Graduate School of Information Security.
 
The Coupang logo is seen at the company's headquarters in Songpa District, southern Seoul, on Dec. 3. [YONHAP]

The Coupang logo is seen at the company's headquarters in Songpa District, southern Seoul, on Dec. 3. [YONHAP]

 
Government investigators found that the personal data leak took place between June 24 and Nov. 8, while Coupang claimed it first became aware of the breach on Nov. 18, prompting suspicions of concealment or downplaying its impact.
 
Coupang is also under scrutiny for adding a liability exemption clause to Article 38 of its terms of service in November 2024, stating the company is not responsible for damages caused by “hacking or unauthorized access,” and for allegedly tightening internal security rules regarding email and software from mid-June — around the start of the leak period.
 
Experts say Coupang failed to act despite repeated red flags. Prof. Hwang said, “There is no direct evidence linking the leak to an insider, but it is clear that there were several opportunities to strengthen security. Beyond the spike in complaints, multiple key executives sold large volumes of shares just before Coupang detected the data breach, raising further questions.”
 
Police said they are examining technical defects and other factors as part of the investigation into whether the company concealed or downplayed the incident.


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 KIM JEONG-JAE [[email protected]]
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