[Journalism Internship] Consumer backlash, rival discounts — and Coupang’s staying power
Published: 31 Dec. 2025, 14:15
![Members of the Korea Consumer Agency raises awareness about the Coupang data leak with a ceremony, holding placards that read, “Coupang Withdrawal Consumer Action Launch Ceremony,” underscoring the seriousness of the incident, on Dec. 17. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/12/31/31c220f0-f07e-44e4-ab23-3f2b5708d855.jpg)
Members of the Korea Consumer Agency raises awareness about the Coupang data leak with a ceremony, holding placards that read, “Coupang Withdrawal Consumer Action Launch Ceremony,” underscoring the seriousness of the incident, on Dec. 17. [NEWS1]
Lim Hyun-bin, An So-yeon, Han Si-woo, Choi Sun-woo
Consumer backlash, rival discounts — and Coupang’s staying power
“My trust has significantly declined,” said a woman surnamed Kim, expressing anger and disappointment over Coupang’s careless handling of customer data following the large-scale breach.
As Coupang faces harsh consumer backlash following a massive customer data leak, rival retailers launch aggressive promotions, including special discounts, to target former Coupang users.
Despite these efforts, experts say a rapid change in the e-commerce landscape is unlikely due to Coupang’s strong membership program and dominant market share.
Coupang disclosed a large-scale data breach in November that exposed the personal information of approximately 33.7 million customers, including names, contact details and delivery addresses, raising concerns over data security in Korea’s largest e-commerce platform.
Rivals step up discounts to attract Coupang users
Following the customer data leak controversy surrounding Coupang, the competitive landscape of Korea’s e-commerce market has begun to shift noticeably. As consumer trust in Coupang declined, rival platforms moved quickly to capitalize on the situation by strengthening price-based and service-oriented strategies.
Major competitors such as 11Street and Shinsegae Group’s SSG.com launched aggressive discount campaigns. Several promotions offered price cuts of 20 to 40 percent on popular daily necessities and consumer electronics, including household goods, groceries, smartphones and small appliances. In addition, coupon programs valued between 5,000 won and 20,000 won ($3.50 and $14) were distributed to encourage first-time purchases and platform switching.
Beyond pricing strategies, rival companies also emphasized service improvements to retain new users. For example, SSG.com expanded its next-day delivery coverage, while 11Street strengthened membership benefits, including additional reward points and exclusive discounts for frequent users.
These measures were designed to attract long-term customers rather than short-term deal seekers. During major promotional periods, some platforms reported adding several hundred thousand new registered users, highlighting the effectiveness of these combined pricing and service strategies. Rivals' responses demonstrate how competing e-commerce companies leveraged Coupang’s crisis as a strategic opportunity to reinforce their market positions through targeted price incentives and service enhancements.
However, industry estimates show that traffic to competing platforms such as 11Street, SSG.com, and Gmarket rose by roughly 15 percent in the weeks following the controversy, suggesting a brief and short-term shift in consumer behavior. Despite aggressive promotions by rivals, the increase appeared short-lived, indicating that most Coupang users did not permanently migrate to competing platforms.
Consumers wary after breach, but most remain
Although the customer data breach sparked widespread concern in modern-day society, interviews and user data indicate that it has not led to a large-scale exit from Coupang. Some consumers said they considered canceling their accounts or memberships, but many ultimately continued using the platform due to its convenience.
Mobile data estimates show that daily active users fell briefly to about 15.9 million following the initial disclosure in mid-November before returning to a similar level as before the leak of nearly 18 million by early December.
Others pointed to Coupang’s irreplaceable role in daily life. “I was uncomfortable and disappointed, but I couldn’t give up next-day delivery,” said a woman surnamed Hwang, who relies on the platform for household essentials. Kim, a woman living on Jeju Island, said she had considered canceling her WOW membership but ultimately decided against it, citing the lack of alternative platforms offering fast delivery and free returns in the region.
Several interviewees mentioned Rocket Delivery, free returns, and the absence of comparable alternatives as key reasons for staying, even as many acknowledged a decline in trust and said they had yet to find a platform capable of fully replacing Coupang. When compared to other e-commerce logistics flows, most deliveries take about 2 to 3 days. Coupang has invested in establishing logistics centers across the country, and this enhances the delivery process by delivering in seven hours or up to a day, taking advantage of time.
Still, users stressed the need for stronger countermeasures. An office worker surnamed Kim said the leak of personal information could escalate into identity theft or the exposure of bank accounts and credit cards, causing serious harm both to individuals and to society as a whole.
Despite continued use, many consumers emphasized that trust remains fragile. Several interviewees said confidence could only be restored if Coupang significantly strengthens its security systems, prevents further data leaks, and takes responsibility for damages when they occur.
At the same time, the interviews reveal a conditional loyalty. Numerous consumers emphasized that repeated incidents could prompt permanent departure, especially as 11Street, Market Kurly and other rivals expand their fast-delivery services and discounts. For now, however, the data and testimonies point to hesitation rather than a firm, decisive action — highlighting how deeply implanted Coupang has become in consumers’ routines.
Why Coupang still dominates
Despite widespread outrage over the recent leakage of massive personal data affecting roughly 33.7 million Coupang users, experts say the company’s position in Korea’s e-commerce market will remain resilient. Analysts argue that while the breach has caused significant reputational damage and shaken consumer trust, its impact will largely remain in the short term, making a large-scale exodus to rival platforms unlikely.
Coupang controls about 23 percent of the domestic e-commerce market, more than most competitors, and its integrated ecosystem — including Rocket Delivery, paid WOW membership benefits, streaming service through Coupang Play and food delivery with Coupang Eats — creates a strong lock-in effect that discourages platform switching among consumers.
“Most of our household necessities come from Coupang,” Kim from Jeju said. A similar view was expressed by a business owner who estimated that using Coupang accounts for more than 70 percent of his household purchases, underscoring Coupang’s firm place in customers’ daily lives.
A consumer survey conducted by NongminNews reflects this dynamic: While 85.4 percent of the users express anxiety about security, 55.3 percent of them still say they will continue using the platform because of convenience and habit, and only a small percentage have actually left.
Industry insiders emphasize that Korean shoppers often prioritize fast delivery and bundled services over data security concerns when alternatives lack equivalent offerings. For these reasons, specialists predict that Coupang will withstand the crisis without losing its dominant foothold, even as rivals apply greater pressure.
What lies ahead for Coupang
However, analysts say the overall impact on investors may remain limited for now. Although several U.S.-based consumer groups are preparing potential class action lawsuits in response to the data leak, market experts note that Coupang’s strong cash flow, high user stickiness, and dominant share in Korea’s e-commerce market reduce the likelihood of long-term structural damage.
Looking ahead, the company is expected to strengthen security investments, expand internal compliance measures and reinforce its paid membership benefits to prevent further user outflow. Industry observers also point out that while others such as SK Telecom, Lotte and Shinsegae are moving quickly to capture “Exit Coupang” users with aggressive promotions, they still face significant obstacles — most notably Coupang’s unrivaled logistics network and Rocket Delivery system, which remain difficult to replicate in the short run.
As a result, many experts believe that although the incident may trigger temporary shifts in user behavior, the long-term trajectory of the e-commerce market is unlikely to change dramatically. Ultimately, the broader question is how this controversy will influence the structure and competition of the Korean online retail sector over the long term.
BY LIM HYUN-BIN, AN SO-YEAN, HAN SI-WOO, CHOI SUN-WOO [[email protected], [email protected], [email protected], [email protected]]
with the Korea JoongAng Daily
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