Coupang Announced a $1.17 Billion Compensation Plan Following a Major Customer Data Breach

South Korean e-commerce giant Coupang announced a compensation program exceeding $1.17 billion following a large-scale customer data breach that affected tens of millions of users. The company stated that the payments, to be made in the form of vouchers, aimed to restore customer trust after months of ongoing public and official scrutiny.

According to statements from the company and the police, the breach, which occurred between late June and early November, involved limited personal information; financial or login details were not affected. Coupang confirmed that customer names, email addresses, home addresses, and parts of order histories were exposed in the incident.

The company reported that sensitive information such as passwords, payment card details, and banking data were not affected. Authorities estimated that approximately 37.7 million current and former customers were entitled to compensation, stating that the incident was one of the largest consumer data breaches in South Korea in terms of scale.

The company stated that the compensation plan covered nearly all users whose information may have been accessed during the breach period. Eligible customers were informed that, as of January 15, 2026, they would be able to check their status via the Coupang mobile application.

Coupang’s Compensation Plan and Payment Schedule

Coupang announced on December 29 that it would distribute digital shopping vouchers worth approximately 50,000 won (approximately $34.87) per customer. The distribution was planned to begin on January 15, 2026, with vouchers to be issued gradually.

The compensation package included multiple vouchers that could be used across Coupang’s services. These included Coupang Eats, Rocket Delivery and Marketplace purchases, Coupang Travel products, and Allux offerings. The company stated that customers would be able to use the vouchers directly during purchases and that additional implementation details would be announced separately.

The Company Is Assessing the Damage Caused by the Incident

Interim Chief Executive Officer Harold Rogers said that the company’s management and employees were assessing the damage caused by the incident and were acting with a sense of responsibility toward customers. Rogers described the compensation effort as a step aimed at addressing customer concerns and responding to criticism from major organizations in South Korea.

Rogers stated that the incident had triggered comprehensive internal reviews and led to a stronger focus on customer protection. Coupang also warned its customers to remain cautious against phishing attempts, urging them not to click on suspicious links and not to respond to messages impersonating the company.

Police Investigation and Identification of the Suspect

The Seoul National Police Agency identified a 43-year-old Chinese national, a former Coupang employee, as the primary suspect behind the data breach. Authorities stated that the suspect worked at Coupang between November 2022 and 2024 and may have continued to access internal systems after leaving the company.

According to officials, the suspect used an electronic coupon authentication key that provided access to the company’s servers. Investigators reported that they examined internal documents, system logs, access histories, and IP address records to determine how unauthorized access was maintained over several months. The investigation was also linked to an increase in phishing activities, as customers reported fraudulent messages and calls impersonating the company.

Daily Active User Count Declined to 15.94 Million

According to data from Mobile Index, operated under IGAWorks, Coupang’s daily active user count saw a significant decline following the public disclosure of the breach. The daily active user count fell from a record high of 17.99 million recorded on December 1 to 15.94 million as of December 6.

Analytical data showed that the decline followed a short-term surge in traffic, as users logged into the application intensively to delete their accounts or change security settings. During the same period, increases were observed on rival platforms. Gmarket reported a 5.8 percent increase in daily active users, while 11th Street and Naver Plus Store recorded traffic increases of 14.33 percent and 23.1 percent, respectively.

Authorities reported that regulatory and legal reviews concerning Coupang were ongoing, as both the breach itself and the company’s internal security controls continued to be evaluated.

Coupang Data Breach: Responsible Person Identified, Leaked Data Deleted