Law firm warns consumers not to use compensation coupons offered by Coupang

A law firm is warning consumers not to use compensation coupons being offered by Coupang. Illo, a law firm leading a class-action lawsuit against Coupang, posted a notice on Monday in an online community of participating plaintiffs.

A Coupang logo is seen in this illustration taken on Feb. 11. [REUTERS/YONHAP]

A law firm is warning consumers not to use compensation coupons being offered by Coupang.

Illo, a law firm leading a class-action lawsuit against Coupang, posted a notice on Monday in an online community of participating plaintiffs, cautioning against using the compensation coupons.

“The proposed compensation is not direct monetary relief for actual damages, but a discount mechanism for purchases on Coupang,” the firm wrote. “It is a measure that avoids true accountability by encouraging additional consumer spending, rather than requiring Coupang to pay from its own assets.”

The 50,000 won ($35) coupon is split into four separate categories, requiring at least four separate purchases to fully redeem the amount, which the firm said encourages excessive consumption.

More seriously, the firm raised concerns that the coupon usage may be considered a waiver of legal claims. “There is a possibility that the coupon terms include a ‘no-litigation agreement’ clause stating that the user agrees not to pursue any civil or criminal claims after accepting the compensation,” the notice said.

A no-litigation agreement is a legal term referring to a settlement in which parties agree to waive all future legal claims. In other words, using the coupon could potentially restrict consumers from participating in future damage claims or lawsuits.

Harold Rogers, interim CEO of Coupang Korea, answers lawmakers’ questions at a joint parliamentary hearing on Coupang's personal data leak, unfair trade practices and labor conditions at the National Assembly in Yeouido, western Seoul, on Dec. 30, 2025. [NEWS1]

Illo also warned that Coupang has an “automatic coupon application” system that may apply coupons without the user's intent, which could unknowingly limit their rights or reduce their claimable damages. “We strongly advise against using the compensation coupons offered by Coupang, as they could lead to unintentional disadvantages,” the firm added.

Coupang had earlier announced that it would offer 50,000 won in coupons per person to all affected users as compensation for the data breach. The company said it was “taking responsibility for the personal information breach and working to rebuild customer trust,” noting that coupons would be issued to all 33.7 million accounts that received a breach notification.

The total value of the compensation program amounts to 1.685 trillion won, marking the largest data breach settlement amount announced by a Korean company.

However, the coupons are divided across four platforms: 5,000 won for Coupang’s main marketplace, 5,000 won for its delivery service Coupang Eats, 20,000 won for its travel platform Coupang Travel and 20,000 won for its luxury beauty and fashion platform R.Lux. This fragmented approach has sparked criticism from consumers, who call it a “split compensation tactic.”

To use the full amount, users would need to purchase luxury goods or sign up for expensive travel packages — leading some to accuse the company of offering “bait compensation disguised as goodwill.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY SHIN HYE-YEON [yoon.soyeon@joongang.co.kr]