Hearings had been delayed pending the regulator's findings; now that the ruling is final, trials are expected to move forward — and more consumers may yet join

Coupang Inc's headquarters in Songpa-gu, Seoul [Herald DB]
Coupang Inc's headquarters in Songpa-gu, Seoul [Herald DB]

The Personal Information Protection Commission's finalization of a record fine of roughly 624.7 billion won ($394 million) against Coupang Inc over a massive data breach is expected to accelerate long-stalled class-action proceedings against the e-commerce giant.

According to legal and industry sources, a significant number of joint damages suits filed against Coupang across the country have had their hearing dates postponed. The delays came after Coupang asked courts to hold off while the commission's investigation was still ongoing.

Coupang had said it would file an administrative lawsuit if the commission imposed a fine, and indicated it intended to pursue both the administrative challenge and the civil damages cases in parallel. Courts also determined it was better to wait for the commission's findings before proceeding, so that the facts of the case could be clearly established.

Now that the commission has issued its final ruling, full arguments and hearings in the civil cases are expected to begin in earnest. "The courts had been giving weight to the fact that the commission's investigation was still under way," one legal industry official said. "Once Coupang submits a detailed written response to the courts based on the commission's findings, the trials should move forward quickly."

However, Coupang could still argue that the civil suits should wait until the outcome of its administrative challenge seeking to overturn the commission's penalty. If courts accept that position, the proceedings could face significant further delays.

A class-action suit filed in the United States may also be affected by the commission's ruling. Law firm SJKP, the US partner of Korean firm Daeryun, filed the suit against Coupang Inc and its chairman Kim Bum-suk in the US District Court for the Eastern District of New York. The case involves roughly 7,800 plaintiffs from South Korea and abroad and seeks $5 million (about 7.6 billion won). It is expected to get under way in earnest from July.

The commission's findings could also prompt more consumers to join the class-action suits belatedly. The financial barrier has also fallen, as some law firms have said they will not charge fees. Nationwide, approximately 640,000 people have so far filed joint damages claims against Coupang, with total claims reported to exceed 100 billion won.

Meanwhile, the commission concluded Thursday that Coupang's failure to maintain basic security practices — including inadequate management of authentication signing keys and access controls — led to the leak of personal data belonging to approximately 37.5 million people. That figure is higher than the 33.67 million cases announced in February by the Ministry of Science and ICT following a joint public-private investigation.

The commission also confirmed that Coupang had unlawfully collected the online activity records of approximately 11.17 million members who accessed third-party websites and apps, storing the data in a database with individuals identified. The 624.7 billion won fine surpasses last year's record penalty of 134.8 billion won imposed on SK Telecom, making it the largest ever levied in South Korea.


spa@heraldcorp.com