Lee calls for tougher fines after Coupang data leak

President Lee Jae-myung said on Dec. 12 that "companies violate the law repeatedly because economic sanctions are too weak," adding that “when they harm the public, penalties must be strong enough to make companies fear they could collapse.” He reaffirmed his intent to impose strict punishment on Coupang following the massive leak of personal data.

Speaking at a televised briefing on government ministries at the international conference hall of the Sejong Convention Center, Lee said, “Violations should trigger a major uproar. Yet when companies break the law, their attitude feels like they are saying, ‘So what?’” Addressing the data breach, he noted that “more than 34 million people have been affected, and unless each individual files a lawsuit, it seems they will not be compensated.” Lee added that “individual lawsuits could cost more than the actual damages. A class action system appears necessary, so please move the legislative process forward.” In a class action, a representative plaintiff files suit on behalf of all victims, and the court’s ruling applies to the entire group.

Lee also ordered an immediate revision of the enforcement decree to raise punitive fines for serious and repeated personal data breaches. Current law caps punitive fines at 3 percent of a company’s total sales, and the enforcement decree applies the 3 percent ceiling to the average revenue of the past three years. Because revising the law requires approval from the National Assembly, he said the government should first amend the enforcement decree so that the highest revenue year within the three-year period becomes the basis for calculating penalties.

In response, the Personal Information Protection Commission reported that, following the Coupang case, it plans to raise the punitive fine ceiling from 3 percent to 10 percent of annual sales. During a briefing the previous day, the president also said that economic misconduct must be met with appropriate economic consequences.


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