Coupang, South Korea's Biggest Online Retailer, Issues Apology to 34 Million Customers Over Data Breach

Dec. 1 (UPI) -- Coupang, South Koreas leading e-commerce platform often compared to Amazon, has issued an apology after a cybersecurity incident exposed personal information of nearly 34 million users. The company, which maintains its global headquarters in Seattle, Washington, confirmed the breach in a statement released on Sunday.

The compromised data included customers names, email addresses, phone numbers, shipping addresses, and some order histories. "We sincerely regret the recent situation and apologize for the inconvenience and concern it has caused," stated Park Dae-jun, CEO of Coupang.

The company assured that more sensitive details, such as credit card numbers, login credentials, and payment information, were not affected by the breach. "We will work closely with the Ministry of Science and ICT, the Personal Information Protection Commission, the Korea Internet & Security Agency, the National Police Agency, and other joint investigation teams to prevent further damage," the company added. "Additionally, we are evaluating improvements to our data security systems to better safeguard customer information."

Investigators revealed that while the breach was detected in November, it began approximately five months earlier. The unauthorized access is suspected to have been carried out by a former employee who is a Chinese national. "Current findings suggest the personal data breach started on June 24 via overseas servers," Coupang said. "We have closed the access route, enhanced internal monitoring, and enlisted leading cybersecurity experts."

Initially, the company discovered the breach after identifying 4,500 exposed accounts. Further analysis revealed that the total number of affected accounts reached 33.7 million, all located in South Korea.

Coupang, which recently recorded record performance on the New York Stock Exchange in the second quarter, has experienced previous data breaches, including an incident exposing the personal information of 460,000 users.

Analysis: Coupang's Data Breach and the Challenges of E-Commerce Security

The recent cybersecurity breach at Coupang, South Korea's largest e-commerce platform, has brought to light several critical issues regarding the security of personal data in the digital age. The company has apologized for exposing the personal information of nearly 34 million users, a breach that included sensitive details such as names, emails, phone numbers, and shipping addresses. However, it is important to note that more critical information, like credit card details and payment credentials, remained unaffected.

The breach, which began approximately five months ago, highlights ongoing vulnerabilities in e-commerce security systems, even in globally recognized companies like Coupang. Investigations point to a former employee as the alleged perpetrator, with the breach originating from overseas servers. This raises important questions about access control and internal security measures within the company. Despite efforts to close the access route and enhance monitoring, the scale of the breach suggests that vulnerabilities were not identified early enough to prevent widespread exposure.

Furthermore, this incident adds to Coupang's history of data breaches, the most notable of which involved the personal information of 460,000 users. Although the company’s commitment to improving its security systems and collaborating with local authorities is a positive step, these recurring breaches underscore the ongoing risks that e-commerce platforms face in safeguarding user data. As the investigation continues, it will be crucial to evaluate how such breaches can be prevented in the future and whether the company can restore customer trust.

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• Korea's largest online retailer Coupang apologizes to 34M customers for data breach