A major compensation move has been announced by South Korea based online retailer Coupang following a large scale data leak. On Monday the company said it would provide compensation worth 1.69 trillion won or $1.18 billion to holders of 33.7 million accounts affected by the incident. Each eligible customer will receive company vouchers valued at 50,000 won.
The announcement came a day after Coupang founder Kim Bom issued his first public apology for last month’s breach and promised faster compensation. Kim has however declined to appear at parliamentary hearings scheduled for Tuesday and Wednesday citing prior commitments. The data leak has triggered strong reactions from users as well as lawmakers across the country.
Criticism has focused on the decision to offer vouchers that can only be used on Coupang services. Choi Min hee a lawmaker from the ruling Democratic Party and chair of the National Assembly Science ICT Broadcasting and Communication committee wrote in a Facebook post that Coupang was “bundling coupons for services no one uses,” criticising the company for linking compensation to its less popular offerings. She added that Coupang appeared to be “trying to turn the crisis into a business opportunity.”
Consumer advocacy group Korea National Council of Consumer Organizations said the plan mocked consumers and reduced the seriousness of the breach calling it a “marketing tool designed to encourage additional purchases rather than as a sign of restitution.” When asked about public criticism Coupang said it had no further comment. South Korea’s parliament is set to hold 2 days of hearings on Coupang starting Tuesday.
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