Coupang CEO steps down following nearly 34 million-user data breach

Coupang, South Korea’s largest online retailer and owner of Farfetch, has entered crisis mode after CEO Park Dae-jun resigned in the wake of a data breach impacting almost 34 million customers. The breach has led to intensifying government scrutiny, police raids and growing consumer uneasiness.

Park’s resignation comes three weeks after the company first became aware of the breach on 18 November. In a public apology, reported by CNBC, Park said he felt a "deep sense of responsibility" for the incident and the handling of its aftermath. "I am deeply sorry for disappointing the public," he said, adding that he would step down from all positions within the company.

Coupang's CEO Park Dae-jun

Coupang confirmed that Harold Rogers, currently chief administrative officer and general counsel of parent company Coupang Inc., has been appointed interim CEO. Rogers’ immediate priority will be to alleviate customer anxiety caused by the personal information leak and stabilise the organisation.

The breach, believed to have begun in June, exposed names, email addresses, phone numbers, shipping details and certain order histories. Coupang has stressed that payment data and login credentials were not compromised. Still, with the leak affecting more than half of South Korea’s population, the scale of the fallout has been severe.

That fallout is now unfolding on multiple fronts. South Korean police raided Coupang’s Seoul headquarters for a second day on Wednesday as part of their investigation. According to Yonhap, the search warrant identifies a former Chinese employee as a suspect in the breach, accused of leaking confidential data and violating the information and communications network.

Prime Minister Kim Min-seok has vowed strict action against Coupang if violations are found.

Coupang said in a statement that it "deeply apologises for causing concerns to the public", adding that its on a mission to restore customer trust.