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Coupang, a South Korean e-commerce company, announced on Monday a 1.69 trillion won ($1.18 billion) compensation deal for 33.7 million affected accounts due to a major data leak, which upset users and lawmakers. Each customer will receive vouchers worth 50,000 won.
Coupang founder Kim Bom apologized for last month’s data breach and promised quicker compensation. However, he will miss parliamentary hearings on Tuesday and Wednesday due to prior commitments.
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Critics are voicing concerns about Coupang’s choice to offer compensation exclusively as vouchers redeemable on its own services.
Choi Min-hee, a lawmaker of the ruling Democratic Party and chair of the National Assembly’s Science, ICT, Broadcasting and Communication committee, said in a Facebook post that Coupang was “bundling coupons for services no one uses,” criticising the company for offering vouchers tied to its less popular services.
She added that Coupang appeared to be trying to turn the crisis into a business opportunity.
The Korea National Council of Consumer Organizations criticized Coupang’s plan for trivializing the data breach, calling it a marketing tactic to boost sales instead of a genuine effort to make amends.
When asked about public criticism of its compensation plan, Coupang said it had no further comment. South Korea’s parliament plans to hold two days of hearings on Coupang starting on Tuesday.
