Coupang begins giving out coupons to data-breach victims

(Yonhap)

South Korean e-commerce giant Coupang Inc. began distributing up to 50,000 won ($34) in purchase vouchers to customers affected by a recent data breach on Thursday, even as it continues to face complaints over limits on how the compensation can be used.

According to industry sources on Thursday, Coupang started sequentially issuing 50,000 won worth of purchase vouchers at 10 a.m. to 33.7 million customers who received notifications of the data breach.

Customers are asked to log into the Coupang app to check their eligibility, after which the vouchers are issued. Coupang plans to send text messages and emails with instructions on how to use them.

The compensation consists of four types of vouchers – 5,000 won for all Coupang products, 20,000 won for Coupang Travel accommodations and tickets, 20,000 won for R.LUX beauty and fashion products, and 5,000 won for Coupang Eats delivery and shopping.

The vouchers are also provided to customers who have already withdrawn their membership.

After Coupang announced the compensation plan on December 29, it faced criticism that the vouchers were effectively marketing coupons. Critics pointed out that R.LUX focuses on higher-priced beauty and fashion items and that Coupang Travel mainly offers expensive products.

In response, Coupang expanded the range of items across major categories that customers can purchase at around 5,000 won or 20,000 won, in line with the intent of the compensation.

Dissatisfaction, however, remains.

While paid Wow members face no minimum order requirement, general members must meet minimum purchase thresholds – 19,800 won for Rocket Delivery and 29,800 for Rocket Direct Purchase – to use the vouchers.

The vouchers are also valid only until April 15, after which they expire.

The retail industry views Coupang’s approach as consistent with standard industry practice of issuing purchase vouchers with a fixed validity period.

The vouchers cannot be used for certain items, including books, infant formula, gift certificates, or hotel buffets and e-coupons on Coupang Travel, due to concerns about potential fraud.

For Coupang Eat orders, the vouchers can be used only if the order meets each store’s minimum order amount.