Coupang faces backlash over voucher-based compensation after massive data breach

South Korean e-commerce giant Coupang has announced a compensation package worth 1.69 trillion won (about $1.18 billion) for users affected by a major data breach, but the move has triggered sharp criticism from lawmakers and consumer groups.

The company said around 33.7 million account holders will receive vouchers worth 50,000 won each, redeemable only on Coupang’s own platforms. The announcement came a day after Coupang founder Kim Bom issued his first public apology for last month’s data leak and promised to speed up compensation efforts.

However, Kim has declined to attend parliamentary hearings scheduled for Tuesday and Wednesday, citing prior commitments, further fuelling criticism.

Opposition to the compensation plan has centred on the nature of the payout. Choi Min-hee, a lawmaker from the ruling Democratic Party and chair of the National Assembly’s Science, ICT, Broadcasting and Communication Committee, criticised Coupang for offering vouchers tied to what she described as less popular services. In a social media post, she accused the company of attempting to turn a serious crisis into a business opportunity.

Consumer advocacy groups have echoed these concerns. The Korea National Council of Consumer Organizations said the plan trivialised the severity of the data breach and treated compensation as a marketing strategy aimed at encouraging additional purchases rather than providing genuine restitution to affected users.

Coupang declined to comment further on the criticism surrounding its compensation plan.

South Korea’s parliament is set to hold two days of hearings on Coupang beginning Tuesday, as scrutiny over the company’s handling of the data breach continues.