Coupang faces a series of negative developments... police raids, parliamentary hearings, and user abandonment - South Korea

Coupang, South Korea's largest e-commerce company, has been hit by a massive personal information leak and is facing widespread pressure, including police investigations, parliamentary hearings, and a class action lawsuit against its US headquarters.
The situation is causing anxiety, and signs of users dropping out are beginning to appear. According to the industry on the 9th, the National Assembly's Science, Technology, ICT, Broadcasting and Communications Committee will hold a hearing on the 17th to investigate Coupang's leak of personal information.
The investigation will examine the circumstances surrounding the incident and the measures to redress consumer damage. Coupang Inc. Chairman Kim Bum-seok, Coupang CEO Park Dae-jung, and Kang Han-seong will appear as witnesses.
The list of witnesses also includes Min Byung-ki, vice president of the Policy Cooperation Office, which handles external relations, and Cho Young-woo, vice president for National Assembly and Government Affairs.
The Seoul Metropolitan Police Agency's Cyber Investigation Division conducted a search of Coupang's headquarters in Songpa-gu, Seoul, on the same morning.
We have been investigating the details of the leak based on server log records and other information voluntarily submitted by Coupang. This time, we have secured documents other than those voluntarily submitted and have identified structural flaws in the company's security system.
The investigation is believed to be aimed at investigating whether any fraudulent practices were involved. In addition, a class action lawsuit seeking punitive damages is expected to be filed in the United States, where Coupang is headquartered, within the year.
SJKP, the US subsidiary of Coupang, Inc., held a press conference in New York on the 8th (local time) and announced its intention to officially file a consumer class action lawsuit against Coupang, Inc. in New York federal court.
Kim Guk-il, CEO of Daeryung Management, said at the press conference, "Coupang headquarters is registered in the state of Delaware, USA, and is listed on the New York Stock Exchange (NYSE).
"It is a national company," he said, adding, "We will use the powerful power of the U.S. judicial system to uncover the truth and work to ensure that the victims receive substantial compensation."
Some users are also abandoning the service.
According to Mobile Index, Coupang's daily active users (DAU) as of the 6th of this month was 15,940,746. This is the highest number ever recorded on the 1st of this month (17,988,846).
This is a decrease of 2.04 million (11.4%) compared to the previous figure of 845. The average number of daily users from the 24th to the 29th of last month, before the information leak was discovered, was around 16 million, and the current scale of withdrawal is
The impact is still small. However, as the situation is expected to drag on, future developments will be closely watched. Rival Korean e-commerce companies are also stepping up their offensive. SSG.com
announced that it will launch a new membership program called "SSG Seven Club" next month, highlighting the industry's highest standard of "fixed savings of 7% of grocery purchases."
Coupang is taking the situation seriously and has indicated that it will focus on strengthening security measures and internal management.
"We are currently investigating the accident in cooperation with the Ministry of Land, Infrastructure, Transport and Tourism, and have further strengthened our internal monitoring by inviting experts from a leading independent security firm," the company said.
All executives and employees will do their best."