Class Action Lawsuit Filed Against Coupang in the US, Where 'Opt-Out' System Exists... Will the Situation Escalate?

In the United States of America (USA), where the opt-out class action system is well established, victims of personal information leaks are launching a class action lawsuit against Coupang. In Korea, only those who participate in a class action can receive compensation from the court, regardless of the scale of the damage. In contrast, in the USA, unless victims explicitly declare their intention to opt out, all affected individuals are eligible for compensation. As a result, class actions in the USA tend to have a stronger punitive damages component compared to Korea.
According to legal sources on the 8th, SJKP LLP, the US branch of Daeryun Law Firm, will hold a press conference in Manhattan at 3:30 a.m. KST on the 9th to announce the filing of a punitive damages lawsuit against Coupang in a US court.
A representative from Daeryun Law Firm stated, "The press conference for the class action will be held at 3:30 a.m. KST on Tuesday, which is 1:30 p.m. local time on Monday in the USA," adding, "The lawsuit targets US residents or locals, and additional plaintiffs will be recruited after the press conference."
On the 29th of last month, Coupang announced that information from approximately 33.7 million customer accounts had been leaked. The compromised data included names, emails, phone numbers, addresses, and some order information. While about 90% of Coupang's revenue is generated in Korea, its stock is listed on a US exchange. The listed parent company, Coupang, Inc., owns 100% of the Korean subsidiary.
In the USA, class action relief for victims is provided through an opt-out system. When a personal information leak occurs, companies typically establish a settlement fund, and compensation is paid from this fund. In Korea, the court determines the compensation amount, which usually ranges from 100,000 to 300,000 KRW per person. In contrast, punitive damages in the USA result in much higher compensation amounts.
In 2021, T-Mobile US agreed to a $500 million (approximately 650 billion KRW) settlement after a data breach affecting 76.6 million subscribers. In 2024, AT&T experienced two major data breaches and set aside about 260 billion KRW ($177 million) for class action settlements.
There is growing public sentiment in Korea that persistent personal information leaks must be addressed. Lee Jung-ryul, Vice Chairperson of the Personal Information Protection Commission (PIPC), stated at the National Assembly of the Republic of Korea that Korea is considering imposing fines of up to 3% of total sales under current law. With Coupang's revenue reaching 41 trillion KRW last year, the company could theoretically face fines exceeding 1.2 trillion KRW. In addition to government fines, civil damages awarded through class actions could also increase.
hwlee@fnnews.com Lee Hwan-joo Reporter