December 26, 2025
Finance

Coupang Shares Rise Amid Ongoing Investigation Into Data Breach

Company Collaborates Closely With South Korean Authorities Following Customer Data Leak

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Summary

Shares of Coupang, Inc. (NYSE: CPNG) experienced an uptick after the company clarified that its investigation into a former employee suspected of leaking customer information was conducted under the direct coordination and guidance of government authorities. The breach, affecting nearly 34 million user accounts, has prompted an active probe by South Korea's Personal Information Protection Commission, with potential significant penalties pending.

Key Points

Coupang confirmed its data breach investigation was conducted in close coordination with South Korean government authorities, not independently.
Government instructed Coupang on December 9 to contact the former employee suspected in the breach.
On December 21, the company provided the suspect's desktop hard drive and laptop to police for forensic analysis.
A detailed report of meetings with the suspect and all collected evidence was submitted to authorities on December 23.
Forensic analysis revealed the former employee used stolen security keys to access customer information linked to nearly 34 million accounts.
Data from approximately 3,000 accounts was reportedly saved and subsequently deleted by the suspect.
The data breach, first disclosed earlier this month, affected 33.7 million users and included sensitive information such as names, emails, delivery addresses, account details, and some order data.
South Korea's Personal Information Protection Commission has initiated an investigation, with potential fines reaching up to around $770 million.

Coupang, Inc., the South Korea-based e-commerce giant listed on the New York Stock Exchange under the ticker CPNG, saw its share price climb on Friday following the release of details clarifying the nature of its investigation into a significant customer data breach. Contrary to earlier speculation that the company managed the probe independently, Coupang confirmed that the inquiry into the suspected data leak of a former employee was executed in direct collaboration with government authorities.

On December 9, the South Korean government directed Coupang to initiate contact with the former employee involved in the case, according to a report from Yonhap News Agency. Subsequently, on December 21, Coupang handed over critical digital assets—including the former employee’s desktop hard drive and laptop—to law enforcement officials. Shortly thereafter, on December 23, the company submitted an extensive report detailing meetings with the suspect, along with all evidence compiled during the investigation, to the governmental agencies overseeing the matter.

Coupang initially disclosed the data breach earlier this month, revealing that nearly 33.7 million users were impacted. The data compromised included personally identifiable information such as names, email addresses, delivery addresses, account details, and certain order histories. Subsequent forensic analysis identified the former employee as the individual responsible for the breach. After being confronted with the evidence, the suspect confessed and provided explanations on the method by which access was obtained.

Specifically, Coupang reported that the perpetrator exploited stolen security keys to gain unauthorized entry into basic customer information associated with approximately 34 million accounts. While this number appears extensive, the company noted that information from only roughly 3,000 of these accounts was copied and later deleted.

The revelation of the breach had initially caused Coupang’s stock price to decline; however, in the wake of its disclosure regarding close governmental collaboration and investigative progress, shares advanced markedly. At the time of this report, data from Benzinga Pro indicates Coupang shares rose by 10.18%, trading at $25.10.

The ongoing investigation by South Korea's Personal Information Protection Commission carries the possibility of substantial penalties. The Commission has not ruled out imposing fines that could total near $770 million, reflecting the seriousness with which regulators are treating the breach.

The company’s transparent engagement with authorities and the clear chain of investigative steps highlight a commitment to resolve the situation under regulatory oversight, in contrast to earlier beliefs that the internal probe might have been conducted in isolation.

Further market reactions continue to unfold as stakeholders assess the implications of the breach, the employee’s admissions, and the regulatory scrutiny that lies ahead for Coupang.

Risks
  • Potential substantial financial penalties from South Korea’s Personal Information Protection Commission, possibly up to $770 million.
  • Exposure of personal and sensitive customer data from millions of accounts, impacting consumer trust.
  • Reputational damage due to the data breach and the involvement of a former employee as the perpetrator.
  • The possibility that additional undiscovered data misuse or leaks could exist beyond the initially reported accounts.
  • Continued regulatory scrutiny and possible future compliance costs related to data protection measures.
  • Market volatility for Coupang’s stock stemming from ongoing effects and uncertainties related to the breach.
  • Legal risks associated with handling and reporting the data breach and cooperation with authorities.
  • Operational challenges in tightening security protocols and mitigating further internal or external breaches.
Disclosure
This article contains information reported by Coupang and governmental sources as specified. No investment advice is provided. All data and quotes are drawn strictly from disclosed company and official regulatory reports shared prior to publication.
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