Coupang CEO fails to appear at South Korean parliamentary hearing on data breach

SEOUL — The founder of South Korea’s Coupang failed to appear before a Wednesday parliamentary hearing about the massive data breach at the e-commerce giant, angering lawmakers who said they would hold him responsible.

Coupang, Inc. Chief Executive Officer (CEO) and Chairman Bom Kim declined to attend the hearing, citing his overseas residence and commitments as head of a global company operating in more than 170 countries.

“Chairman Bom Kim’s claim that he cannot attend because he is traveling abroad and is a global CEO is, in my view, an act that truly mocks the public and delivers despair to global investors,” said lawmaker Choi Hyung-du.

“Even Meta’s Mark Zuckerberg and Amazon’s Jeff Bezos —heads of companies larger than Coupang — did not refuse to appear before Congress hearings,” he said.

Lawmakers said they will be filing a complaint against Mr. Kim, accusing him of breaking a law that compels witnesses to attend hearings and make themselves available for investigations. Under the law, people can be fined or imprisoned for refusing testimony.

The personal data of more than 33 million Coupang customers was leaked in a breach believed to have started on June 24 through overseas servers, though the company did not learn of the problem until Nov. 18.

New York-listed Coupang’s shares have slumped some 17% since the company revealed the leak at its South Korean unit late last month.

Standing in for Mr. Kim at the hearings was Harold Rogers, the interim CEO of Coupang Corp. — the company’s South Korean unit which accounts for the vast majority of its revenue.

“I’m in communication with our board of directors, including with our chairman,” Mr. Rogers said, but added “I am the decision maker in Korea.”

Mr. Rogers said that under US SEC rules, the breach did not count as a material breach as the information leaked is not considered highly sensitive. The breach would not violate US privacy law, he added.

South Korean President Lee Jae Myung has since called for increased penalties for corporate negligence in data breaches. Under current South Korean law, companies that fail to implement adequate data protection measures can be fined up to 3% of revenue. 

That could mean a fine of more than 1 trillion won ($680 million) for Coupang, which reported 38.3 trillion won in revenue in 2024. — Reuters