CEO of South Korean Retailer Coupang Steps Down After Data Breach

Concerns regarding data security has once again made headlines as South Korean online retail giant Coupang suffered a major data breach, resulting in over 30 million users’ data leaked online. Amid the crisis, Park Dae-jun, CEO of Coupang, resigned from his position this week.

This major incident has reignited conversations pertaining to the degree of measures necessary to ensure the safety of personal information of users online. Since the 2019 data leak on Facebook, which resulted in the breach of over 530 million users’ data, there have been several questions raised regarding how user data privacy is managed by businesses and companies across the world.

Coupang CEO Park Dae-jun resigns after data leak of over 33M users

Coupang
Image: Bloomberg / Coupang

Park Dae-jun, the chief executive of South Korean retail company Coupang, stepped down from his position on December 10. The CEO had previously apologized publicly for the massive data leak of around 33.7 million users at the Government Complex in Seoul on November 30. For now, Harold Rogers, the CAO of Coupang’s parent organization in the US, will be the interim CEO.

According to reports by Reuters, Coupang experienced a massive leak of personal information of over 33 million users, which has been traced back to June this year. The December 1 report stated, “South Korean police said on Monday they were tracing IP addresses and looking into possible tech vulnerabilities at Coupang, opens new tab after the e-commerce giant suffered the country’s worst data breach in over a decade.

The kinds of user information that got exposed since then include the names of users on their platform, their email addresses, phone numbers, addresses as well as order histories. Nevertheless, payment details and login credentials were not leaked.

Prior to Park Dae-jun’s resignation on Wednesday, Prime Minister Kim Min-seok announced that the South Korean government would launch a probe into the matter and take strict action in case Coupang committed any legal violations.

Related: TIME Names AI Tech Leaders as Person Of The Year 2025

Data security continues to be major concern amid heavy AI investments

As Coupang still struggles to address the data breach of their customers while dealing with the growing backlash in the media, concerns regarding user privacy continue to persist. Unfortunately, South Korea has been victim of several cases of data leaks in the past. This includes the 2011 data leak at the gaming company Nexon Korea Corp which affected 13 million subscribers, and the 2014 incident involving the theft of credit card information of over 20 million users.

User data security is one of the most fundamental regulations that requires significant attention at all times. As businesses and service sectors begin to turn their attention to new trends, it appears that the legal necessities pertaining to user welfare are being prioritized less. Perhaps the utility of AI to eliminate any possibility of data breach could be considered in this regard. With the right kind of tools and measures, artificial technology could in fact, be put to good use for the sake of customer assurance and safety.

Coupang’s enthusiasm towards AI technology was evident in the establishment of their Fulfillment Centre which is powered by artificial intelligence. As investments continue to be made in the AI tech industry, entrepreneurs and businesses should take major steps to ensure such incidents can be averted in the days to come.

Also Read: After €120 Million Fine, Elon Musk’s X Blocks EU Commission From Making Ads

Share your love
Apurba Ganguly
Apurba Ganguly
Articles: 99

Leave a Reply

Your email address will not be published. Required fields are marked *