Trials gain momentum as privacy watchdog finalizes ruling; class-action participants may grow; administrative challenge could cause delays
The Personal Information Protection Commission's decision to impose a record fine of 624.7 billion won (about $394 million) on Coupang Inc over a massive data breach is expected to breathe new life into stalled class-action lawsuits filed across the country.
According to legal and industry sources, hearings in many of the joint damages suits filed nationwide against Coupang Inc had been postponed at the company's request. Coupang Inc had asked courts to wait until the commission completed its investigation.
Coupang Inc had said it would file an administrative lawsuit if the commission imposed a fine, and that it intended to pursue both administrative and civil proceedings simultaneously. Courts had also concluded it was better to wait for the commission's findings before proceeding. Now that the commission has finalized its ruling, legal observers expect hearings and arguments to move forward in earnest. "The courts had taken into account that the commission's probe was still ongoing," one legal source said. "Once Coupang Inc submits a detailed response to the courts based on the commission's findings, the trials should proceed quickly."
However, Coupang Inc may still argue that civil proceedings should be put on hold until the outcome of an administrative lawsuit seeking to overturn the commission's ruling. If courts accept that argument, the litigation could drag on for a considerable time.
A class-action suit filed in the United States could also be affected by the commission's ruling. Law firm SJKP, the US partner of Korean firm Daeryun, filed a class-action suit against Coupang Inc and its chairman Bom Kim in the US District Court for the Eastern District of New York. The case involves some 7,800 plaintiffs from South Korea and abroad and seeks $5 million (about 7.6 billion won). It is expected to get fully underway in July.
The commission's findings may also draw more consumers to join the class-action suits, observers say. The financial barrier has also fallen, as some law firms have said they will not charge contingency fees. About 640,000 people nationwide have so far joined the joint damages suits against Coupang Inc, with total claims reported to exceed 100 billion won.
Meanwhile, the commission concluded Thursday that the personal data of some 37.5 million people had been leaked due to Coupang Inc's failure to maintain basic security practices, including inadequate management of authentication signing keys and access controls. That figure is higher than the roughly 33.67 million cases disclosed in a joint public-private investigation the Ministry of Science and ICT announced in February.
The commission also found that Coupang Inc had covertly 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 set against SK Telecom — 134.8 billion won — making it the largest such penalty ever imposed in South Korea.
spa@heraldcorp.com
