Shares of Coupang (CPNG) fell nearly 6% in pre-market trading on Monday after a massive data breach that may have affected nearly 34 million local customer accounts. It is being called the worst data leak South Korea has seen in over 10 years, adding to investor concern and market pressure.
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For context, Coupang is a fast-growing online retail and logistics company, often called the “Amazon (AMZN) of South Korea”. It runs a large delivery network, offers groceries and products through its app, and is known for ultra-fast shipping.
Coupang Apologizes for Huge Data Leak
Over the weekend, Coupang apologized for the data breach. CEO Park Dae-jun released a statement on the company’s website, saying, “We sincerely apologize again for the inconvenience caused to our customers.” The comment came as the firm works to respond to a major data breach that has shaken investor confidence.
Additionally, South Korea’s internet watchdog, the Korea Internet & Security Agency, confirmed it has launched an investigation, warning that personal details from millions of user accounts were likely exposed. The agency is now reviewing whether the company broke personal data protection and safety rules.
In response, Coupang stated that it first discovered the data breach on November 18 and immediately notified authorities on Saturday. The company also confirmed it is cooperating with law enforcement and regulatory agencies while working to secure its systems.
Meanwhile, South Korean media outlet Yonhap News Agency reported on Sunday that a former company employee from China is suspected of being linked to the breach. According to the report, Coupang recently filed a police complaint, and the case is now under active investigation by South Korean authorities.
Is Coupang a Good Stock to Buy?
According to TipRanks, CPNG stock has a Strong Buy consensus rating based on five Buys and one Hold assigned in the last three months. At $37.50, Coupang’s average share price target implies a 33% upside potential.
