---
title: "Coupang Faces Backlash Over $1.1 Billion Data Breach Payout in Vouchers"
date: 2025-12-30
author: "Sofia Ramirez"
featured_image: "https://sqmagazine.co.uk/wp-content/uploads/2025/12/coupang-data-breach-compensation-plan-under-fire-by-korean-customers.jpg"
categories:
  - name: "Cybersecurity"
    url: "/cybersecurity.md"
tags:
  - name: "News"
    url: "/tag/news.md"
---

# Coupang Faces Backlash Over $1.1 Billion Data Breach Payout in Vouchers

South Korea’s largest e-commerce company is under fire for offering shopping vouchers instead of cash to compensate users after a massive data breach.

## Quick Summary – TLDR:

- Coupang is compensating 34 million users with $1.1 billion in shopping vouchers after a major data leak.
- Each affected user will receive ₩50,000 in vouchers, spread across various Coupang services including Coupang Eats, Alux, and Coupang Travel.
- Public backlash has erupted, with critics calling the vouchers a marketing ploy and demanding cash-based restitution.
- Lawmakers and consumer rights groups are questioning the legality and sincerity of Coupang’s approach.

## What Happened?

Coupang [announced](https://news.coupang.com/archives/58960/) it would compensate users affected by a recent [data breach](https://sqmagazine.co.uk/data-breach-statistics/) with **₩1.69 trillion (around $1.1 billion)** in vouchers, not cash. The move has sparked intense public and political backlash. The data leak, disclosed on **November 18**, reportedly affected **34 million users**, making it one of the largest breaches in South Korea’s history.

> Coupang just told millions of users that exposing names, emails, delivery addresses and even apartment entry codes is worth ₩50,000 in coupons.   
>   
> This is not compensation.  
> This is negligence wrapped in marketing.[\#coupang](https://twitter.com/hashtag/coupang?src=hash&ref_src=twsrc%5Etfw) [\#ConsumerRights](https://twitter.com/hashtag/ConsumerRights?src=hash&ref_src=twsrc%5Etfw) [\#CyberSecurity](https://twitter.com/hashtag/CyberSecurity?src=hash&ref_src=twsrc%5Etfw) [pic.twitter.com/RN1Hn8Dbiq](https://t.co/RN1Hn8Dbiq)
> 
> — Richard (@sejcore) [December 29, 2025](https://twitter.com/sejcore/status/2005546760018837758?ref_src=twsrc%5Etfw)

 ## Coupang’s Compensation Plan Details

The company plans to begin the compensation process on **January 15, 2026**. Eligible users, including those who have since deleted their Coupang accounts, will receive **₩50,000 in vouchers** divided across four of Coupang’s platforms:

- ₩5,000 each for **Coupang** and **Coupang Eats**.
- ₩20,000 each for **Coupang Travel** and **Alux**, Coupang’s luxury marketplace.

Harold Rogers, Coupang Korea’s interim CEO, said in a public statement, **“We deeply regret the concern caused and have prepared this plan as a responsible measure to protect our customers’ trust.”** Founder Kim Bom also apologized, calling the delay in addressing the issue **“poor judgment”**, and admitted that **he should have spoken out sooner**.

## Why Critics Are Calling It a Marketing Strategy?

Despite the apology and the record-setting payout, Coupang’s decision to issue vouchers has drawn fierce criticism from **lawmakers, consumer groups, and users online**.

- **Choi Min-hee**, chair of the National Assembly’s Science, ICT, Broadcasting and Communication Committee, criticized the vouchers as **“coupons for services no one uses”**.
- **The Korea National Council of Consumer Organizations** labeled the move a **“mockery of consumers”**, arguing that tying the vouchers to purchases effectively **turns a crisis into a marketing opportunity**.
- **Legal experts** noted that using coupons allows Coupang to **record the amount as deferred sales**, limiting immediate financial loss while appearing to pay restitution.

Roughly **80 percent of the total voucher value** is tied to less popular platforms like Coupang Travel and Alux, raising concerns that many users will not be able to fully utilize the vouchers.

## Timing Raises More Eyebrows

The announcement was made just **one day before a two-day parliamentary hearing** on the data breach. This timing has led some lawmakers and observers to accuse Coupang of trying to **influence public opinion and defuse political scrutiny**.

Critics have also pointed out that the announcement coincided with Coupang’s **quarterly financial disclosures**, possibly aimed at reassuring investors amidst mounting regulatory pressure and the start of **class-action lawsuit registrations**.

## Legal Fallout and Consumer Response

More than **12,000 people** have already registered for a joint class-action lawsuit in Daegu alone. Multiple law firms have launched **litigation portals** seeking **cash compensation** instead of vouchers.

Online sentiment is overwhelmingly negative. Polls on major platforms like **Naver and Kakao** show **over 70 percent of users rejecting the compensation plan** as inadequate or insincere.

Consumer advocacy groups argue that the plan may even violate the **Personal Information Protection Act**, which mandates **“proportionate and effective”** redress.

## SQ Magazine’s Takeaway

I get why people are mad. You cannot just leak personal data from 34 million people and then hand them coupons that basically send them back to shop more on your platform. That’s not an apology, that’s a business strategy. The backlash isn’t just about the breach, it’s about trust. People want accountability, not discount codes. Coupang may have made one of the largest restitution offers ever seen in Korea, but the way it’s structured feels like a **tone-deaf move** in the age of consumer rights. If they truly want to regain trust, they need to start listening and maybe offer actual cash.