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South Korea
This Week in AsiaPolitics

Coupang data leak threatens South Korea-US ties amid tariff tensions

The breach, which has fuelled public anger, shows how a domestic corporate scandal can escalate into a diplomatic flashpoint

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Delivery trucks for e-commerce retailer Coupang leave a distribution centre in Seoul, South Korea. Coupang’s data leak last year exposed the personal information of 33.7 million people. Photo: Reuters
David D. Lee
Relations between long-time allies South Korea and the United States have hit another unexpected flashpoint even as Seoul struggles to iron out tariff talks with Washington – the uproar over a data breach involving online giant Coupang, dubbed the Korean Amazon.

The US-listed company that provides e-commerce, entertainment streaming and food delivery services to nearly 34 million South Koreans – more than 60 per cent of the population – last November disclosed a massive data leak exposing the personal information of 33.7 million people.

Coupang on Thursday confirmed in a statement that the data of another 165,000 users was leaked in the breach, but that no payment details or login information were compromised and users had been notified ‍as per government guidance.

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Although Coupang generates about 90 per cent of its revenue in South Korea, its strong backing from US investors, including Greenoaks Capital Partners and Altimeter Capital Management, has led to cries of support from across the Pacific even as the company is crucified by the Korean public at home.

In a signal of the diplomatic implications of the fallout, US Vice-President J.D. Vance in late January warned South Korea against “penalising” American technology firms.

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In America, Republicans on the House Judiciary Committee said on social media that “this is what happens when you unfairly target American companies like Coupang”.

Coupang founder Bom Kim (centre) walks with investor Stan Druckenmiller and member of the Federal Reserve Board of Governors Kevin Warsh in Idaho in July 2023. Photo: Getty Images via AFP
Coupang founder Bom Kim (centre) walks with investor Stan Druckenmiller and member of the Federal Reserve Board of Governors Kevin Warsh in Idaho in July 2023. Photo: Getty Images via AFP
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