By Heejin Kim and Kyu-seok Shim
SEOUL, July 3 (Reuters) – South Korea rejected claims by Coupang and a U.S. congressional report that the company was unfairly targeted over a massive data breach, National Security Adviser Wi Sung-lac said on Friday at the presidential Blue House in Seoul.
Wi’s comments came after a U.S. House Judiciary Committee report accused South Korea of discriminatory treatment of the U.S.-listed e-commerce firm. Multiple South Korean media outlets have also reported a White House statement saying Coupang was “singled out” by President Lee Jae Myung’s government.
The investigations of Coupang were conducted on a non-discriminatory basis, Wi said at a press conference called to announce President Lee’s attendance at a NATO summit in Turkey.
The dispute has emerged as a flashpoint in U.S.-South Korean relations, with Seoul concerned it could affect broader negotiations with Washington including talks on nuclear-powered submarines. Wi said South Korea would continue explaining its position to U.S. counterparts and seek to prevent the issue from spilling over into other areas.
Wi said the congressional report reflected the company’s position disproportionately and that Seoul would continue pointing out what it regards as the report’s inaccuracies.
South Korea’s foreign ministry had said on Thursday that the report was one-sided and failed to adequately incorporate Seoul’s position.
Wi also disputed Coupang’s assertion that customer information was compromised and downloaded for only about 3,000 accounts in the breach. Authorities had found that a former employee of the biggest online retailer in South Korea had accessed information on more than 33 million accounts and viewed the matter as much more serious, he said.
“If a similar leak had occurred in the United States, affecting roughly two-thirds of its population, it would also be regarded as a serious issue there,” Wi said.
Coupang, when contacted, referred Reuters to a statement on its website: “We regret the circumstances that led to the House Judiciary Committee’s investigation, and we remain committed to finding a constructive resolution so Coupang can once again serve as a bridge to strengthen the U.S.-Korea alliance, accelerating trade and investment that benefits both countries.”
South Korean authorities have determined a former Coupang employee in China accessed customer records using company login credentials, and officials have been unable to determine how the information was used or where it ultimately ended up, Wi said.
The authorities remain concerned that the data could be in China, he said.
Last month, South Korea’s Personal Information Protection Commission fined Coupang 625 billion won ($409 million) over the data breach.
Wi also rejected suggestions in the congressional report that President Lee’s office was involved in pressuring Coupang to retrieve equipment in China linked to the breach.
The report alleged that South Korea’s spy agency pressured Coupang to retrieve devices in China connected to the former employee responsible for the breach, and that President Lee was aware of the operation that recovered some of the equipment.
“The presidential office neither knew about nor instructed such a retrieval in advance,” Wi said.
($1 = 1,528.8000 won)
(Reporting by Heejin Kim and Kyu-seok Shim; Editing by Tom Hogue)
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