How to respond to Coupang's defiant stance

Only when the truth is fully exposed and the business environment begins to change will Coupang recognize that the loss of trust translates directly into rising costs. None of this requires anger or theatrics.

Choi Hyeon-chul

The author is the acting editor-in-chief at the JoongAng Ilbo.

Coupang has replaced the head of its Korea unit amid mounting pressure over a massive customer data breach and allegations that it sought to cover up industrial accidents. The company appointed Harold Rogers, the chief administrative officer and head of legal affairs at its U.S. headquarters, to succeed former Korea CEO Park Dae-jun, a Naver veteran known for his understanding of the local e-commerce market.

Harold Rogers, interim CEO of Coupang, answers questions from lawmakers during a hearing on the e-commerce giant's massive data leak and other practices at the National Assembly building in western Seoul on Dec. 31, 2025. [YONHAP]

At his first appearance in Korea — a parliamentary hearing last week — Rogers showed little sign of remorse. He repeatedly argued that the breach involved only about 3,000 customers and insisted that the company’s internal investigation was conducted “at the direction of the Korean government.” He even asked why the government was concealing its findings. When lawmakers presented messages allegedly showing that Coupang founder Bom Kim, also known as Kim Beom-seok, had instructed executives to conceal industrial accidents, Rogers challenged their authenticity. Confronted with accusations that the company violated U.S. Securities and Exchange Commission rules by delaying disclosure beyond the four-business-day deadline, he responded that the information was deemed immaterial.

This was not a case of cultural misunderstanding or a momentary loss of composure. Rogers leads a company with an annual revenue nearing 40 trillion won ($27.7 billion) and is a legal expert who is well-versed in U.S. securities law. His posture suggested calculation rather than impulse. To understand how regulators should respond to a company that appears indifferent despite losing vast amounts of customer data and facing persistent workplace safety controversies, it is necessary to examine the intent behind this stance.

For Coupang, minimizing the scale of the data breach is paramount. Regardless of the nature of the information exposed, the company has framed the incident as involving only 3,000 records. The National Intelligence Service inadvertently reinforced this narrative. During a joint government investigation, officials reportedly met suspects separately, allowed contact with alleged accomplices and asked them to collect evidence on their own. For Coupang, this created an opportunity to construct an alibi. The primary suspect has fled to China, and the only physical evidence is a laptop that Coupang itself brought into Korea during its internal probe.

If this framing holds, it could strengthen the company's position in shareholder lawsuits in the United States related to alleged violations of disclosure rules. Administrative fines imposed by Korean authorities would then be a secondary concern.

Coupang may also believe it can rely on networks built through former officials. Reports recently surfaced that a retired senior police officer attempted to join Coupang as a department head but was blocked by the government ethics committee. At the Ministry of Employment and Labor, the minister is said to have warned officials that meeting with former regulators who have moved to Coupang could lead to “ruin,” underscoring the level of official frustration with the company’s recruitment of ex-government personnel. In the prosecution service, a senior prosecutor alleged that an investigation into the legality of Coupang’s changes to its severance pay rules was derailed by interference from superiors. Several aides from lawmakers' offices have also joined Coupang’s government relations team. From the company’s perspective, time may allow these channels to become effective again.

Consumers locked into Coupang’s ecosystem are the final line of defense. Overnight delivery has become an inescapable part of daily life. The monopoly built through massive capital investment has left consumers with few viable alternatives. Arguments that consumer boycotts should compensate for regulatory failures are weak. Leaving Coupang is neither easy nor likely to be permanent. The defiant tone adopted by Coupang and Rogers appears rooted in the calculation that most users will return.

Once that intent is recognized, the appropriate response becomes clearer. Coupang's current Achilles' heel is the true scope and process of the data breach. Authorities must determine whether far more sensitive information was exposed than the company has admitted and identify those ultimately responsible. If that happens, Coupang would face serious consequences in both Korea and the United States. The investigation will not be easy, but leads revealed in a threatening letter sent by the perpetrator should be pursued exhaustively. If evidence emerges that documents were concealed, destroyed or falsified during the internal investigation, or that perjury occurred, those responsible must be punished strictly.

The Coupang logo is seen on a delivery truck at a Coupang logistics center in Seoul on Dec. 29, 2025. [YONHAP]

It is equally important to establish whether Coupang’s labor practices systematically contribute to industrial accidents and to impose clear administrative sanctions if they do. Allegations that the late Jang Beom-seok’s industrial accident was concealed also warrant a thorough probe. Jang was a former Coupang logistics worker whose death was widely reported as being linked to overwork, with allegations that the company sought to downplay or conceal the circumstances surrounding the case. Above all, policymakers must work to dismantle Coupang’s dominance and create conditions in which competitors can emerge.

Only when the truth is fully exposed and the business environment begins to change will Coupang recognize that the loss of trust translates directly into rising costs. None of this requires anger or theatrics. It requires persistence. Even if it takes time, the work must be done.

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.