TLDR
- Coupang stock dropped 9% in premarket trading after revealing a data breach affecting over 33 million customers in South Korea’s worst leak in more than a decade
- The breach started June 24 but wasn’t discovered until November 18, exposing names, emails, phone numbers, addresses and order histories but not payment details or passwords
- A former Chinese employee allegedly used an authentication key that stayed active after their contract ended to access customer data
- Over 10,000 people plan to join a class action lawsuit seeking compensation exceeding $68 per person
- South Korean authorities launched investigations into potential violations of personal information protection regulations
Coupang shares fell 9% in premarket U.S. trading on Sunday following the disclosure of a massive data breach. The incident affected more than 33 million customers in South Korea.
The breach represents the country’s worst data leak in over a decade. Customer names, email addresses, phone numbers, shipping addresses and certain order histories were compromised.
The unauthorized access began on June 24 through overseas servers. Coupang didn’t discover the breach until November 18, nearly five months later.
The company stated that payment details and login credentials were not exposed in the incident. This limits the immediate financial risk to affected customers.
South Korean authorities have opened investigations into the breach. Science Minister Bae Kyung-hoon said the perpetrator “abused authentication vulnerabilities” in Coupang’s servers.
Officials are examining whether the company violated personal information protection regulations. The extended period between the breach and its discovery raises questions about the company’s security monitoring.
Coupang suspects a former Chinese employee played a key role in the attack. This person previously handled authentication tasks for the company.
Former Employee Under Investigation
Lawmaker Choi Min-hee stated the ex-employee allegedly used an authentication key that remained active after their contract ended. This allowed unauthorized access to customer information.
South Korean police are tracing IP addresses connected to the breach. They’re also investigating possible technical vulnerabilities at the company.
The legal fallout has already begun. Internet postings show more than 10,000 people plan to join a class action lawsuit against Coupang.
Lawyer Ha Hee-bong suggested the lawsuit could seek compensation exceeding 100,000 won per affected individual. That amounts to roughly $68 per person.
With 33 million affected customers, the potential liability could reach over $2.2 billion. However, actual settlement amounts often differ from initial claims.
Analyst Reactions and Market Response
Despite the breach, some analysts maintained their positions. Bank of America Securities and Morgan Stanley kept their price targets unchanged.
These firms cited the company’s growth potential and proactive response as reasons for continued confidence. However, the market reaction tells a different story.
Increased insider selling suggests uncertainty among corporate insiders. This pattern often indicates concerns about near-term performance.
Coupang’s year-to-date price performance stands at 26.33% before this decline. The company’s market cap sits at $51.44 billion.
The technical sentiment signal for the stock currently shows “Buy” despite the breach news. Average trading volume is 11,328,283 shares.
South Korean authorities continue their investigation into the breach and Coupang’s security practices.
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