Coupang’s Self-Inflicted Crisis in Korea
The new year has arrived, but in Korea, the name Coupang feels less like a blessing and more like a curse. Those of you in the Korean American community have likely seen the news, and this incident has become a textbook case of how a company can shoot itself in the foot—going far beyond a simple data breach.
The Earpiece War at the National Assembly
On December 30, 2025, Coupang’s interim Korea CEO, Harold Rogers, appeared before a National Assembly hearing. But instead of coming to solve problems, he poured gasoline on the fire.
Rogers refused to wear the official simultaneous interpretation device provided by the National Assembly. He insisted on using his personal interpreter. When Committee Chair Rep. Choi Min-hee rebuked him for “disrespecting the legislature,” a tense 6-minute standoff was broadcast live across the nation. Many Koreans watching felt they were witnessing the arrogance of a foreign corporation.
The bigger problem was the absence of founder Kim Bom-suk. Once again, he skipped the hearing, citing “overseas business commitments.” This marked his eighth time avoiding a summons, leading lawmakers to describe him as “cowardly” and “hiding in a rabbit hole.” It looked like someone running from responsibility.
The 1.69 Trillion Won Trap
The day before, on December 29, Coupang announced compensation totaling 1.69 trillion KRW for 33.7 million affected users. At first glance, the amount seemed substantial, but once people looked closer, it only fueled public anger.
Every affected user would receive 50,000 KRW (~$34.66) worth of vouchers not cash compensation. But the breakdown was also problematic: 5,000 KRW (~$3.47) for general shopping, 5,000 KRW (~$3.47) for Coupang Eats, and the remaining 40,000 KRW (~$27.73) exclusively for travel and luxury products (Alux). As of Jan 3, 2026, Dollar to KRW rate is $1 = ₩1,442.48.
Civic groups condemned this as “Marketing Disguised as an Apology.” To use the travel or luxury vouchers, customers would need to spend significant additional money. It was like throwing a swimming pool discount coupon to a drowning person instead of a life vest.
Even more calculated was the requirement that users who had deleted their accounts must re-register to claim the “compensation.” Critics called this a cynical ploy to inflate user numbers after the mass exodus.
Government Goes to Total War
The Korean government no longer views this as a simple data breach. On January 2, 2026, the Seoul Metropolitan Police launched an 86-person task force. They’re investigating not just the data leak, but also allegations of covering up warehouse worker deaths and unfair trade practices.
The Fair Trade Commission (FTC) is moving to designate Kim Bom-suk as the “controlling owner” (Same Person) of the business group. If this happens, the “U.S. company” shield will no longer protect him. He’ll be personally responsible for all legal obligations in Korea.
The National Assembly is fast-tracking a “Coupang Bill” that would impose punitive damages of up to five times the actual loss for companies that mishandle personal data and obstruct investigations.
The Moment Trust Built on Rocket Delivery Crumbles
Coupang transformed Korean lives with “Rocket Delivery.” It was magical service—order at dawn, receive by morning. But now that trust is shattering into pieces.
What infuriates Koreans most is the hypocrisy. Coupang earns 90% of its revenue from Korean pockets, yet treats the Korean National Assembly like a nuisance. Instead of sincere apologies or cash compensation, they threw marketing coupons at customers, signaling that their metrics matter more than customer dignity.
One comment online captured the moment perfectly: “That bum CEO suck!” This crude but honest expression perfectly encapsulates the Korean public’s feelings—a mix of betrayal and disappointment toward the conglomerate.
Lessons for Our Community
For those of us in the Korean American community, this isn’t someone else’s problem. Many of us have family in Korea and do business in the Korean market. The Coupang crisis offers important lessons.
First, technology and convenience alone aren’t enough. Without customer trust and respect, no innovation lasts.
Second, authenticity in crisis response is mandatory, not optional. Coupang’s attempt to do the legal minimum backfired spectacularly.
Third, cultural sensitivity is the foundation of global business. Who could have imagined that one earpiece could enrage an entire nation?
Rockets can rise quickly, but they fall even faster. Whether Coupang can fly again now depends on its leadership. Will Chairman Kim Bom-suk emerge from his rabbit hole and show mature leadership? Or will he hide while watching the rocket he built crash to the ground?
What do you think, members of our Korean American community? If you were the executive, how would you resolve this situation?
