A Coupang, one of the largest e-commerce platforms in South Korea, went to court to try to annul US$ 462 million in fines imposed by South Korean authorities after investigations into the leak of personal information and irregular collection of user data. The company, listed on the New York Stock Exchange, filed two administrative actions on October 7, according to information released this Thursday (8).
The penalties, imposed in June by the Personal Information Protection Commission (PIPC), total 624.7 billion won. In addition to contesting the decisions, the company requested the suspension of their effects while the cases are analyzed by the Seoul Administrative Court.
The dispute involves two distinct violations: security failures related to the exposure of information of approximately 37.5 million people and the collection of browsing records from more than 11 million users without adequate consent.
What is behind the fines contested by Coupang
The largest penalty, of 423.6 billion won, is related to a security incident that occurred in 2025. According to the PIPC, the compromised information covered approximately 33.2 million customers and 4.3 million other people whose data was registered at delivery addresses.
The investigation concluded that a former employee was able to access internal systems using authentication credentials that had not been properly protected or replaced after his termination. The authority identified deficiencies in access controls and in the monitoring of suspicious activities.
The second fine, of 201.1 billion won, stems from a separate investigation into digital advertising practices. The agency concluded that Coupang collected browsing records from approximately 11.17 million users on third-party websites and apps, including pages visited, access times and IP addresses, without the authorization required by law.
The decisions also ordered corrective measures related to system security, transparency in data collection and oversight of advertising partners.
Legal dispute does not eliminate financial impact
The challenge comes after Coupang has already recognized US$ 410 million in expenses related to the fines in its second quarter 2026 results. The amount was recorded before the new lawsuits and reflects the accounting estimate presented by the company in that period.
In documents sent to the U.S. Securities and Exchange Commission (SEC), the company also reported that the filing of appeals does not automatically suspend the payment obligation. Therefore, the requests for suspension filed with the court represent an important step in the dispute.
Coupang maintains that its measures to prevent further damage after the leak and the clarifications presented during the investigation were not sufficiently considered by the regulatory authority.
There is still no final court decision on the penalties. The two cases will determine whether the sanctions will be upheld, modified or annulled.
