As Coupang data leak probe in South Korea drags on, delivery workers and sellers bear the cost

SEOUL – A Coupang parcel driver in his 30s said fewer delivery orders in South Korea since the company’s massive data breach have translated directly into shrinking income – even as his living costs remain unchanged.

“People think fewer orders mean less work,” he said, requesting anonymity. “But for us, it just means less money. My income rose as Coupang grew. Since the data breach, that’s reversed – and I still have a family to support and bills to pay.”

His experience is becoming increasingly common as a government investigation into Coupang enters its third month, weighing heavily on delivery workers and small business owners who depend on the e-commerce platform for their livelihoods.

The probe followed the disclosure in November 2025 of a

large-scale data breach

that put the personal information of nearly all of Coupang’s 33.7 million users at risk, triggering a pan-governmental investigation and widespread consumer backlash.

Since then, declining user activity and order volumes have rippled through Coupang’s logistics ecosystem.

According to market intelligence firm Wiseapp.Retail, Coupang’s monthly active users fell to 33 million in January, a drop of about one million users, or 3.2 per cent, from December 2025.

The decline was roughly 10 times larger than the drop recorded between November and December 2025, underscoring the sharp deterioration in consumer engagement.

For delivery workers, the slowdown has meant fewer packages – and thinner pay cheques.

The Coupang Partners Association, which represents delivery vendors working with the company, warned last week that drivers’ livelihoods are being threatened as order volumes shrink amid lingering public resentment.

“While it is necessary to verify wrongdoing and demand corrective measures, there is a golden time to resolve uncertainty surrounding the company,” the group said in a statement. “Unconfirmed suspicions and prolonged ambiguity are heightening consumer anxiety and directly reducing delivery orders.”

The association added that about 20,000 delivery labourers handling Coupang orders are responsible for supporting their families.

Coupang’s labour union has also raised concerns about the scope and duration of the investigation, cautioning against regulatory overreach that could further weaken operations.

“We are not trying to downplay Coupang’s responsibility to protect personal information,” the union said in a statement in January.

“But excessive sanctions beyond the scope of responsibility could severely damage operations, eliminate delivery and logistics jobs, and threaten the livelihoods of tens of thousands of families.”

Signs of strain are already emerging inside Coupang’s logistics arm. According to industry sources, more than 5,000 employees at Coupang Fulfillment Services applied for voluntary time off between early December 2025 and mid-January 2026 as logistics volumes declined.

Small and mid-sized merchants selling on Coupang are also feeling the impact. The Korea Federation of Micro Enterprises said it has begun collecting damage claims from sellers who rely heavily on the platform, with merchants reporting average sales declines of 30 per cent to 40 per cent since the data breach.

A farmer surnamed Min, in her 50s, said her sales through Coupang have fallen by half as an anti-Coupang movement spread among consumers.

“Coupang made it possible for me to sell my products nationwide,” she said. “Now I’m stuck with unsold goods. I’m not defending Coupang – but this situation is incredibly frustrating.”

Two South Gyeongsang province-based agricultural companies, Mangang and Sinsinfarm, echoed those concerns in a joint statement in January, warning that farmers and fresh food producers are often the first to be affected when demand declines.

“Agricultural products and fresh food cannot endure prolonged disruptions,” they said.

“We need a logistics and order-processing system capable of handling harvests for timely nationwide distribution. Realistically, only Coupang offers that level of scale and stability.” THE KOREA HERALD/ASIA NEWS NETWORK