Coupang Inc., the U.S.-headquartered holding company of South Korea’s e-commerce platform Coupang, reports a record operating loss in the first half as costs from last year’s personal data breach continue to weigh on its results. The company says it suffered an operating loss of about $798 million and a net loss of roughly $836 million, with most of the losses recognized in the second quarter. The downturn is tied to customer compensation costs and regulatory penalties connected to the breach, which affected about 33.7 million customers.
Bloomberg reports that the loss outcome highlights the continuing damage from the leak and the resulting heavy administrative fines in South Korea, Coupang’s main market. Korea Times adds that approximately $410 million in administrative fines imposed by local regulators drives much of the first-half losses, and that the breach-related expenses substantially erase operating profit earned over the prior two years. Despite the financial hit, Coupang says customer spending has largely recovered and expects to resume its earlier growth and margin path next year after working through the breach’s impact.
