Coupang Faces Possible Business Suspension Over 34 Million User Data Breach

Could the 'Amazon of South Korea' face a total blackout? The Fair Trade Commission (FTC) just signaled it's considering a temporary business suspension for Coupang Inc. following a massive data breach affecting nearly 34 million users. This move represents one of the most severe regulatory threats in the company's history.

Coupang Data Breach Business Suspension Risks

According to Yonhap News, FTC Chairman Ju Biung-ghi testified during a parliamentary hearing on December 31, 2025, that authorities are currently investigating the extent of the leak and the adequacy of the company's response. "If necessary, we can consider penalties up to and including a suspension of business operations," Ju stated, underscoring the gravity of the situation.

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A sharp contradiction has emerged regarding the scale of the incident. While initial reports estimated over 33.3 million accounts were compromised, Coupang recently claimed that only 3,000 accounts were actually affected. However, the South Korean government quickly rejected this claim, calling it a unilateral conclusion while the official investigation is still ongoing.

The $1.17 Billion Compensation Controversy

In an attempt to mitigate public backlash, Coupang announced a 1.69 trillion-won ($1.17 billion) compensation package. However, critics were quick to point out that the 50,000 won per person offer consists mostly of shopping vouchers that require further purchases. Lawmakers have slammed the plan as a "promotional event" disguised as an apology.