South Korean e-commerce giant Coupang has announced it will pay a total of $1.18 billion in compensation to users in South Korea following a court ruling related to a large-scale data leak. The decision marks one of the biggest compensation cases involving personal data protection in the country.
The compensation follows a legal case over Coupang’s handling of user information. South Korean courts found that the company improperly collected and used personal data without sufficient consent, violating local data protection laws. As a result, Coupang is required to compensate affected users.
According to the ruling, the case centers on personal information gathered through Coupang’s online services. The court concluded that the company failed to meet legal standards for transparency and user consent, which are key requirements under South Korea’s strict privacy regulations.
Coupang confirmed it will comply with the ruling and move forward with the compensation plan. The total amount of $1.18 billion will be distributed among eligible South Korean users whose data was impacted. The exact amount each user will receive will depend on the final allocation process.
The company said it respects the court’s decision and has already begun strengthening its internal systems. Coupang stated it has taken steps to improve data protection measures, update internal policies, and enhance oversight of how user information is collected and stored.
South Korea has some of the toughest data privacy laws in Asia, and enforcement has increased in recent years. Regulators have placed greater pressure on digital platforms to ensure personal data is handled responsibly, with heavy penalties for violations.
Legal experts say the size of the compensation reflects the seriousness of the breach and sends a strong message to the tech industry. Large platforms operating in South Korea are expected to maintain high standards when it comes to personal data protection.
Coupang has grown rapidly to become one of South Korea’s largest online retailers. Its services extend beyond e-commerce to include food delivery, logistics, and digital content, all of which rely heavily on user data.
The company emphasized that protecting customer trust is a priority as it continues to expand. Coupang said it plans to invest further in cybersecurity infrastructure, employee training, and compliance programs to prevent similar incidents in the future.
The compensation process will involve administrative steps before payments are issued. Coupang said it will provide affected users with clear instructions regarding eligibility, timelines, and how compensation will be delivered.
The case is expected to influence how future data privacy violations are handled in South Korea. Analysts say it sets a precedent for higher financial consequences when companies fail to safeguard personal information.
As regulators continue to tighten oversight, companies operating in the digital economy face increasing pressure to prioritize privacy and transparency. For Coupang, the payout represents a major financial obligation, but also an opportunity to rebuild trust and reinforce its commitment to user data protection.
The compensation announcement comes at a time when consumers are becoming more aware of how their personal information is used online. The ruling highlights the growing importance of accountability in the tech and e-commerce sectors.
Coupang said it will continue to cooperate with authorities and monitor its systems closely. The company added that it aims to ensure its services meet both legal requirements and customer expectations moving forward.
