Coupang Korea CEO Harold Rogers clashes with lawmakers at Assembly hearing

A contentious parliamentary hearing on key controversies surrounding e-commerce giant Coupang, including the company’s recent data breach and allegations of deaths from overwork, took place at the National Assembly on December 30, with heated comments from both sides of the table.

The joint hearing was led by the Science, ICT, Broadcasting and Communications Committee, with participation from five other standing committees: the National Policy Committee; the Land, Infrastructure and Transport Committee; the Environment, Labor and Energy Committee; the Planning and Budget Committee; and the Foreign Affairs and Unification Committee. It will also continue on December 31.

A total of 13 witnesses were summoned, including former Coupang Korea CEO Park Dae-jun, interim CEO of Coupang Korea Harold Rogers and other current and former Coupang executives.

However, Coupang board Chairman Bom Kim, his younger brother and Coupang Vice President Kim Yoo-seok, and former Coupang CEO Kang Han-seung submitted written explanations citing “prior commitments” for their absence. It marked the eighth time Bom Kim has failed to appear at a National Assembly hearing.

A major point of contention was Coupang’s probe into the data breach, the results of which were announced last Thursday. Coupang said it had identified and contacted a former employee suspected of leaking personal data and conducted digital forensic analysis of devices such as laptops.

Lawmakers criticized the probe for being conducted internally rather than through a public-private joint investigation team, while Coupang argued that the government ordered the probe.

Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon said more than 33 million personal records, including names and email addresses, had been leaked, contrary to Coupang’s claim that the leaker accessed only 3,000 user accounts and deleted the rest.

A joint investigation team involving the Personal Information Protection Commission and the National Police Agency had confirmed the scale of the breach and was continuing its probe, according to the minister.

“I want to express serious concern that Coupang announced investigation results without coordination while an official government investigation is underway,” Bae said.

Democratic Party (DP) Rep. Hwang Jung-a then asked Rogers which government agencies Coupang had communicated with. Rogers replied that the National Intelligence Service had publicly stated it worked with Coupang and said he would provide the names of officials involved.

When pressed on whether the agency in question explicitly used the term “direct order” in relation to the investigation, Rogers said it was an order. He explained that although Coupang did not want to meet the suspect behind the leak, the agency repeatedly asked them to contact the suspect.

Adding that Coupang met one suspect in China, Rogers — raising his voice — blamed the Korean government for denying that it had ordered the company to investigate.

Coupang’s customer compensation plan, announced on December 29 ahead of the hearing, also came under fire. The company said it would provide 50,000 won ($35) in Coupang vouchers per customer, but critics noted that most of the voucher amount could only be used on platforms specializing in luxury goods or travel products.

DP Rep. Kim Hyun-jung asked whether Coupang was willing to offer additional forms of compensation, but Rogers effectively ruled out further measures, saying the package — totaling about 1.7 trillion won — was unprecedented.

In response, Rep. Kim Woo-young said the compensation plan amounted to clear “tie-in sales” that could violate Korea’s Monopoly Regulation and Fair Trade Act, adding that coupon-based compensation is not permitted under U.S. law, as confirmed by court precedents related to the U.S. Class Action Fairness Act.

Rogers countered that the claim was inaccurate, saying the case cited by the lawmaker involved class actions, while Coupang’s proposal was a voluntary compensation measure.

BY CHOI HYUN-JU [kim.minyoung5@joongang.co.kr]