The behavior of Coupang executives regarding the significant data breach is drawing considerable criticism from the National Assembly, and urging regulatory agencies to prepare for potential actions against the e-commerce giant.
Following the revelation of the data breach in late November, the company’s senior leaders, including founder Kim Bom-suk, have faced criticism for neglecting to take responsibility and express apologies to the 33.7 million impacted customers.
Kim issued a late apology on Sunday but continued to decline attending National Assembly hearings, opting instead to send the newly appointed interim CEO of Coupang Korea, Harold Rogers, to represent him. During the three sessions he participated in, Rogers failed to quell public frustration towards the company and its leaders; rather, he exacerbated dissatisfaction. Lawmakers characterized his demeanor as "arrogant."
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In addition to the data breach, Coupang is entangled in various other controversies, such as inadequate working conditions at its logistics centers and several reports of fatalities in the workplace.
As Rogers provided vague answers to various inquiries from legislators, Fair Trade Commission (FTC) Chairman Ju Biung-ghi, present at the Wednesday hearing, intensified criticism of Coupang for not meeting its social responsibilities.
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Ju also urged for harsher punitive actions against Coupang.
“Major international firms like Coupang are taking advantage of Korean employees and misleading consumers,” he stated at the hearing. “In today's legal landscape, businesses can persist in these exploitative behaviors.”
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To avoid a repetition of problems like the Coupang breach, the FTC leader emphasized the necessity for a significant overhaul of Korea’s regulatory framework.
“In many developed nations, they establish regulations in advance of any possible issues, unlike Korea,” Ju stated.
The FTC chief stated that Korea must promptly adjust the system to enable authorities to proactively stop Coupang and other major firms from engaging in any unfair business practices.
He also criticized the insufficient financial penalties placed on companies.
"Korea's regulatory bodies are unable to implement significant economic sanctions within the existing ex ante regulatory structure," he stated.