Investors Urge U.S. Investigation Into Coupang Data Breach Response
In 2022, South Korean eCommerce giant Coupang experienced a significant data breach that compromised the information of millions of customers.
Recently, two investors have implored the United States government to scrutinize South Korea’s management of the incident, as reported by Reuters on January 22.
These technology investors, Greenoaks and Altimeter, contend that the U.S. may need to implement trade remedies in response to perceived discriminatory actions against Coupang.
The investors have submitted arbitration claims against South Korea, invoking the U.S.-Korea Free Trade Agreement. They allege that the South Korean government undertook a targeted campaign against Coupang after the data breach, resulting in substantial financial losses for investors.
Additionally, they have petitioned the U.S. Trade Representative to investigate these actions and apply “appropriate trade remedies, potentially including tariffs and other sanctions.” They argue that the measures taken following the breach surpass routine regulatory enforcement.
South Korea’s Trade Minister, Yeo Han-koo, responded, asserting that the government does not exhibit discrimination against Coupang. He claimed that U.S. officials have fallen prey to “misunderstandings.”
Furthermore, he delineated that the extraordinary data leaks, compounded by what he termed as Coupang’s insufficient response, are independent of trade and diplomatic affairs.
Coupang, often regarded as South Korea’s analogue to Amazon, disclosed in November that the personal information of over 33 million customers was compromised in a data breach described as the most extensive ever recorded in South Korea.
The breach involved customers’ names, contact information, shipping addresses, and some order histories, although login details and payment information remained intact.
To address this incursion, the company announced it would compensate affected Korean customers with vouchers amounting to 55,000 won (approximately $38) each.
Moreover, Coupang is currently contending with a class-action lawsuit from investors, alleging that the company misrepresented its data security protocols and failed to disclose the breach in a timely fashion.
In related cybersecurity developments, artificial intelligence is equipping companies with the capability to intervene earlier in the attack cycle by detecting coordinated activities and emerging risk indicators, thereby averting the escalation of fraud.
Source link: Pymnts.com.
