Record-High Coupang Fine... Foreign Ministry: "We Will Explain the Outcome to the U.S."
As the Personal Information Protection Commission (PIPC) decided to impose a fine of over 630 billion won on Coupang following its personal data breach incident, the government stated that the measure is a decision based on domestic law and due process, and plans to explain the details to the United States.
An official from the Ministry of Foreign Affairs told reporters at the Seoul Government Complex on the 11th, "The government will maintain a policy of non-discrimination toward U.S. digital companies, including Coupang, and will calmly explain the outcome of the PIPC's action against Coupang to the U.S. side."
The official added, "The PIPC conducted its investigation fairly and in accordance with procedures set by domestic law, based on the principle of imposing sanctions commensurate with responsibility," and continued, "I understand that Coupang was given ample opportunity to present its views during the investigation process."
At a plenary meeting held on this day, the PIPC resolved to impose a total of 624,945,800,000 won in fines and penalties on Coupang and its affiliates for personal information leaks and violations. This is the largest amount ever imposed in such a case in Korea.
The government maintains that the fine is a legitimate legal action against a company responsible for a personal information breach. However, given that the Coupang issue has been a matter of interest for the U.S. Congress and administration, diplomatic circles are closely watching for the possibility that the U.S. may raise objections to this record-setting fine.
Previously, on June 3, Secretary of State Marco Rubio responded to a question about the Coupang issue during a House Foreign Affairs Committee hearing, saying, "To be honest, I think this has affected our ability to reach a trade agreement with Korea. This is because of certain attitudes Korea has shown toward U.S. companies." In April, 54 Republican lawmakers also sent a letter to the South Korean Embassy in Washington, demanding an end to what they described as discriminatory regulations against U.S. companies, including Coupang.
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U.S. concerns over the Coupang case have been cited as one of the factors behind months-long delays in follow-up negotiations on security-related issues such as nuclear-powered submarines, uranium enrichment, and spent nuclear fuel reprocessing, as outlined in the U.S.-Korea Joint Fact Sheet (JFS). However, the talks resumed after a U.S. government delegation visited Korea and held a launch meeting on June 2.
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