South Korea has faced one of the largest data breach incidents of the past decade, involving the country’s leading e-commerce platform, Coupang. According to analysts at FinancialMediaGuide, the company lost data of over 33 million users, raising doubts about the effectiveness of its security system and drawing attention from authorities. The police have initiated an investigation, examining vulnerabilities in the authentication system and tracking suspicious IP addresses.
At FinancialMediaGuide, we note that the breach occurred after a hacker exploited a vulnerability in Coupang’s server authentication system, allowing them to access users’ personal information. The leaked data included customers’ names, email addresses, phone numbers, and order history. However, financial information and login passwords were not compromised. The incident was only discovered months later, in November, although the breach is believed to have started as early as June.
Based on current information, we at FinancialMediaGuide believe that a key issue in this breach was the involvement of a former employee. The individual used an authentication key that remained active after their contract had ended. This highlights the importance of regularly monitoring employee access to data and promptly deactivating accounts after contract termination.
We see this incident not only as a manifestation of internal vulnerabilities in the company’s security system but also as part of a larger problem – insufficient protection of personal data at the level of government regulation. Given previous data breaches in South Korea, such as the SK Telecom incident, it can be argued that companies will need to enhance their security systems to comply with new legislative requirements.
At FinancialMediaGuide, we emphasize that this incident will have a short-term impact on Coupang’s financial results. Despite significant reputational damage and lawsuits from users, the company is likely to remain stable due to its strong market positioning. However, high fines from the South Korean government are expected in the future, which could affect the company’s financial performance.
We predict that, in response to the current data breaches, the South Korean government will implement new control measures and strengthen requirements for companies handling personal data. This incident underscores the need for improved data protection legislation and serves as a warning to other companies not to underestimate the importance of securing personal information.
In the long term, we at Financial Media Guide forecast that increasing security measures and changes in legislation will lead to significant shifts in corporate culture in South Korea. Companies that fail to provide adequate data protection will face growing risks – both financial and reputational.
