Coupang (Yonhap)

The government stressed it will take action using all measures available over social issues related to Coupang.

On Dec. 31, the government said through a joint parliamentary hearing that it takes very seriously the combined raising of major social issues including a Coupang hacking incident and a large-scale personal data leak, deaths from overwork among platform workers and unfair trade practices against third-party sellers.

The government said Coupang’s lukewarm and passive explanations revealed during the hearing, as well as responses seen as playing down harm and evading responsibility, were further amplifying public concern and distrust. It said it will pursue action by devising all possible legal measures.

Investigative and law enforcement bodies including the Ministry of Science and ICT, the National Police Agency, the Personal Information Protection Commission and the Financial Services Commission plan to work closely together to thoroughly investigate the leak of more than 33 million personal data records and transparently disclose the results to the public later.

Specifically, the science ministry will look into the cause of the incident and Coupang’s security vulnerabilities. The data protection commission will examine the scale and scope of the leak and whether there were violations of the Personal Information Protection Act, including ISMS-P.

The financial regulator will investigate the possibility of fraudulent payments and practices involving high-interest loans. The police will conduct an investigation including analysis of seized materials, checks on whether evidence was destroyed or manipulated, and arrests of suspects through international cooperation.

The science ministry will also immediately request a police investigation into Coupang’s alleged violation of an order to preserve materials related to the hacking incident under the Information and Communications Network Act, as confirmed by a joint public-private investigation team.

The Fair Trade Commission will review whether information was misappropriated, concerns over potential property losses for consumers, and Coupang’s measures to restore damage. The fair trade regulator and the Korea Communications Commission plan to investigate whether complex account deletion procedures that are inconveniencing many users constitute prohibited acts under the E-Commerce Act and the Telecommunications Business Act, and to take strict action if legal violations are found.

The labour ministry will promptly investigate the alleged concealment of industrial accidents by Coupang and thoroughly conduct inspections into night work and measures to protect health rights. It will also process applications for workers' compensation for work-related illnesses quickly.

The transport ministry will, together with the National Assembly’s Euljiro Committee, promptly draw up an agreement on implementing a "social consensus" to protect Coupang workers. It will also inspect working conditions and safety management measures at Coupang and its logistics subsidiary, and take strict legal action if violations are found.

The Fair Trade Commission said it will thoroughly investigate illegal acts including alleged abuse of Coupang’s market-dominant position and unfair practices toward suppliers. It also decided to closely review whether to designate Chairman Kim Beom-seok as the same person.

The National Tax Service plans to thoroughly verify issues raised over alleged tax evasion and the appropriateness of internal transactions related to Coupang and Chairman Kim Beom-seok, and to take the lead in establishing tax justice.

The justice ministry will request rapid implementation of measures including mutual legal assistance in criminal matters needed to collect evidence of the personal data leak in China. It will also review changes in residency status and entry and exit records for key parties involved, as well as whether laws were violated.

Choi Min-hee, chair of the National Assembly’s Science, ICT, Broadcasting and Communications Committee and a lawmaker from the Democratic Party, which led the hearing, said, "The National Assembly will take all possible measures in cooperation with the government so that in the future, including through a state audit, immediate business suspension is possible when laws are violated."

Deputy Prime Minister Bae Kyung-hoon, who also serves as science minister, stressed, "What Coupang needs to do is to sincerely comply with the government investigation and show an earnest attitude to voluntarily resolve the piled-up issues."

He added, "The whole government will move as one team to respond thoroughly to the end and disclose transparently so that not a single suspicion remains and the public can feel at ease." He added, "There will be no compromise on acts that undermine public safety, workers’ lives and fair market order."

Keyword

#Coupang #Ministry of Science and ICT #Personal Information Protection Commission #Fair Trade Commission #Kim Beom-seok
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