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Coupang Data Breach: National Intelligence Agency Denies U.S. Claims of Coercion

EconomyCoupang Data Breach: National Intelligence Agency Denies U.S. Claims of Coercion
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The U.S. House Judiciary Committee has alleged that South Korea’s National Intelligence Service (NIS) effectively ordered Coupang to retrieve laptops from China in connection with a data breach incident. The NIS has vehemently refuted these claims, asserting they are entirely false.

On Thursday, the NIS stated that the Coupang Report by the House Judiciary Committee inaccurately portrays the agency’s involvement. They emphasized that they never issued any directives, orders, or coercion to Coupang regarding the investigation.

On Wednesday, Republican members of the House Judiciary Committee released a 35-page interim report. It alleged that the South Korean government conducted a biased investigation of Coupang. The report claimed that the NIS essentially compelled Coupang employees to travel to China to recover laptops belonging to those responsible for the data leak. It even mentioned the use of divers in the retrieval process and that the president was briefed on the matter.

The NIS had previously denied similar allegations in December last year. They reaffirmed their position, stating that they are not in a position to give instructions to Coupang and have never done so.

The agency explained that under Article 4 of the NIS Act, they considered the large-scale data breach by foreign entities a national security threat. As such, they engaged in consultations with Coupang to gather relevant information and prevent further damage.

Addressing Coupang’s claims about equipment recovery in China, the NIS stated that neither their staff nor anyone else was aware of the existence or recovery of the information technology (IT) equipment until they received a request from another government agency to assist in its domestic transfer.

The NIS further explained that they supported the domestic transfer of the equipment to prevent its loss or theft, believing it might contain personal information of over 33 million Korean citizens. They emphatically denied Coupang’s assertion that this process occurred under NIS orders, labeling it as clearly false.

The agency also noted that when Coupang inquired about directly contacting the data leak suspect on December 6 last year, the NIS repeatedly advised that the final decision should be Coupang’s.

Regarding allegations of selecting domestic cybersecurity firms, the NIS countered that Coupang initially requested introductions to domestic firms due to delays from U.S. companies. The NIS maintains they only shared general information and did not suggest hiring specific firms for data analysis.

The NIS has requested that the National Assembly file perjury charges against Coupang’s representative, who testified in a December parliamentary hearing that the NIS had issued investigation orders. Police are currently investigating this matter.

Expressing regret over Coupang’s unilateral false claims, the NIS affirmed their commitment to cooperating fully in all truth-seeking activities.

It’s worth noting that the House Judiciary Committee report is an interim staff report prepared by Republican members, based on materials and testimonies provided by Coupang. The South Korean government, through its Foreign Ministry, has dismissed it as a one-sided report that fails to adequately reflect the government’s position.

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