Coupang (CPNG) announced Thursday it will implement a customer compensation program worth 1.685 trillion won ($1.2 billion) to restore customer trust following a massive personal data breach.
The compensation covers 33.7 million accounts whose holders received data breach notifications from Coupang in late November. Both Wow members and regular members will receive equal compensation. Customers who canceled their Coupang accounts after receiving the breach notification are also included. Coupang plans to notify the 33.7 million account holders via text message about how to use their purchase vouchers on a rolling basis.
Coupang will provide each eligible customer with four one-time-use purchase vouchers worth a total of 50,000 won: 5,000 won for Rocket Delivery, Rocket Direct Purchase, Seller Rocket, and marketplace products; 5,000 won for Coupang Eats; 20,000 won for Coupang Travel products; and 20,000 won for aLux products.
Eligible customers can check their vouchers through the Coupang application starting January 15 next year and apply them when making purchases.
"This incident has prompted Coupang to deeply embrace 'customer-centrism' in practice, and we will fulfill our responsibilities to the end to become a company that customers trust," Harold Rogers, interim CEO of Coupang Korea, said. "We sincerely apologize to our customers once again."