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Consumers are increasingly criticizing Coupang for failing to come up with a relief plan for victims even a month after becoming aware of the customer personal information leak incident. In Busan, collective action appears to be in full swing, starting with a press conference by a civic group on the 15th, followed by the submission of complaints through law firms. According to Daeryun Law Firm on the 23rd, more than 3,900 people have participated in the lawsuit for damages against Coupang Inc, which is being filed by SJKP LLP, a local partner law firm in the United States. Coupang Inc, Coupang's parent company, submitted a report titled 'Significant Cybersecurity Incident' to the U.S. Securities and Exchange Commission (SEC) on the 16th (local time). According to SEC regulations, companies listed on the U.S. stock market must make a disclosure within four business days from the date the company determines a cybersecurity incident to be ‘serious.’ However, controversy arose because the disclosure was made only a considerable amount of time after Coupang became aware of the incident. In addition, Harold Rogers, Coupang's interim CEO, received strong criticism when he attended a National Assembly hearing on the 17th and said, "Although we are not subject to disclosure obligations, we made the disclosure in consideration of continued interest." In particular, social public anger is not expected to subside easily as it is pointed out that Coupang is going beyond the controversy over simply 'delayed disclosure' and is consistently avoiding legal responsibility rather than resolving the situation. Voices of criticism are also coming from the industry. In particular, it is evaluated as a clear contrast to the actions of other companies that were in similar situations in the past. Previously, Kakao quickly formed a damage support council when a fire in 2022 paralyzed related services and caused damage. SK Telecom also announced measures for victims, such as free SIM card replacements, when a customer information leak occurred. An industry official who requested anonymity explained, "There are stories inside and outside the industry that Coupang is holding meetings with domestic and foreign law firm officials in preparation for class action lawsuits in the U.S." and "It seems like they are putting more emphasis on legal action than on preparing measures for consumers." The government also drew its sword. On the 18th, Deputy Prime Minister and Minister of Science, ICT and Future Planning Bae Kyung-hoon submitted the 'Coupang Incident Pan-Ministry Response Direction' as an emergency agenda at the 2nd Science and Technology Ministerial Meeting held at the Seoul Government Complex and began emergency response by forming a task force (TF) team. This TF aims to go beyond simple accident resolution and prepare fundamental measures such as reforming the information security certification system and strengthening corporate responsibility. However, some are raising concerns about institutional limitations. An official in the security industry predicted, “For Coupang, defending against a U.S. lawsuit that applies punitive damages will be the top priority,” and added, “Despite pressure from the government, it is highly likely that it will remain passive until the end in announcing an apology or compensation plan that could serve as unfavorable evidence in a lawsuit.” Reporter Baek Jae-hyun (itbrian@newsis.com)[View full article] Consumers are angry at Coupang for avoiding responsibility... Class action lawsuit in full swing (link)

From auxiliary tools to core infrastructure…Legal Tech’s Evolution of Artificial Intelligence(AI)Legal Tech, led by(Legal-Tech)is changing the paradigm of legal services.. Perform repetitive and time-consuming tasks such as document preparation and precedent review. AIWhile sharing, There is an assessment that legal services have entered a phase of efficiency focused on creating high added value..Recently, the growth of the legal tech market has been rapid.. According to Fortune Business Insight, a global market research firm, the size of the global legal tech market will be approximately this year. 340billion dollars(approximately 47landscape gardening)at 2032year 635billion dollars(approximately 88landscape gardening)It is expected to expand to. The average annual growth rate is 10% Inside and outside. especially AI The sector is growing faster. Business Research Insight is a global legal tech AI the market 2027year 465billion dollars(approximately 61landscape gardening) It is expected that it will expand in size.. This is why there is analysis that the introduction of technology is leading to structural change beyond a temporary fad..Experienced on site AI, “A reliable helper for lawyers with low experience”The changes felt in actual practice are clear.. In the past, it was just a simple data search stage. AIhas now evolved to the level of establishing the framework of writing..AI Choi Yi-seon, a legal service expert and managing attorney at Daeryun Law Firm, said: “today AIsummarizes the facts, Structuring issues, basic legal principles, We are assisting to a large extent with the writing work performed by lawyers with less experience, such as organizing the direction of similar precedents.”explained. Legaltech company AI The scope of use is also expanding.. Choi Joo-seon, CEO of Nepla(lawyer)Is “In research work, AIis being used widely, It is relatively useful in drafting formal writing or contracts.”He said “Recent multimodal AIAs technology has developed significantly, its potential for use in tasks that analyze various types of data, such as evidence analysis, is increasing.”said. AI The introduction brought about changes in the structure of lawyers' work.. Attorney Choi “data organization, draft, Tasks with relatively low added value, such as structured work AIAs the lawyer takes charge, the lawyer establishes strategies and makes difficult judgments., You can now focus on high value-added tasks such as communication with clients and companies.”as “The overall productivity of lawyers improves, A structure is formed in which both the quantity and quality of output increase simultaneously, which ultimately becomes the basis for lawyers to create higher value and earn profits.”He said.AI It was also predicted that its use could change the landscape of the legal market itself in the long term.. Attorney Choi “AIIf the time and resources secured are utilized to understand and accumulate expertise by industry,, A virtuous cycle structure is possible in which specialized lawyers for each industry are activated and corporate legal demand also increases.”and said. However, he “This change does not occur automatically;, the lawyer AIIt is premised on a conscious effort to convert the labor saved through”as “Making that premise work is a task that the legal community and the legal tech industry must solve together.”He pointed out.And then “Legal Tech ‘Nice tool to have’Rather, it will be basic infrastructure without which survival will be difficult.”He said “Legal Tech can gain market trust when technology and legal expertise are balanced.”He emphasized.This change in work methods is also reflected in statistics.. According to legal tech company Law & Company, AI service ‘Super Royer’ user's 94%experienced a reduction in work time, On average, approx. 25It was found that the effect of shortening work was seen.. Compared to before, work productivity is weak 1.7It's a two-fold improvement..Law & Company officials said: “Overall work time has been significantly reduced due to improved work efficiency.”as “AI As productivity increases through introduction, an environment will be created where legal experts can focus their capabilities on more important tasks.”predicted that. ‘labor provider’at ‘service designer’asAI The introduction is also changing perceptions of the role of lawyers.. Perform low-value-added tasks such as drafting and organizing data. AIWhile taking charge, The lawyer △Establish a strategy △Difficult legal judgment △We are now able to focus more energy on high value-added areas such as in-depth communication with clients..This is affecting the profit structure of the legal market.. existing ‘Get paid according to the time invested’ In an hourly fee-centered structure,, AIThis is a transition to a performance- and value-based compensation system based on efficiency through. Attorney Choi “Such changes are already underway in advanced legal tech countries such as the United States and Europe.”He said “Korea too AI As utilization spreads, it will gradually but inevitably follow.”predicted that.CEO Choi “The hourly fee is a model limited to some large law firms.”He said “AIRather than changing the profit structure itself, it is working to increase the possibility of a win-win situation for both law firms and clients within the existing structure.”and analyzed. And then “For law firms that must work within a limited budget, AIEfficiency through efficiency can be a means of breaking the vicious cycle of deficit or quality decline.”was diagnosed.However, efficiency innovation is AIdoes not mean a complete replacement for. Legal issues are related to the context of the case, human relationships, social ramifications, This is because atypical factors such as the court’s tendencies work in combination.. AIis only a tool to aid judgment., It is impossible to be the subject of judgment..CEO Choi AIDue to the social limitations of ‘say’chose. CEO Choi “Technological limitations are changing so rapidly that it is difficult to determine”Although “human AIwill not hand over the final decision to”He emphasized that. With the spread of legal tech, responsibility and ethical standards, The challenge of institutional support is also rising to the surface.. AI Who will be held responsible if a legal problem arises due to an error?, AI The standards for how to verify the reliability of analysis results are not yet clear..Experts and industry believe that Korea has ample potential to leap forward as an advanced legal tech country.. CEO Choi “In Korea, electronic litigation is already active and all legal documents and evidence are electronic.”as “Since the workflow in the legal market is already combined with technology, it is very natural for advanced new technologies to become established as infrastructure.”I predicted. However, some point out that discussions on responsibility standards and ethical guidelines are still lagging compared to the speed of technology diffusion.. Whether institutional discussions to ensure trust and responsibility can be held in parallel with efficiency innovation is considered a key variable that will determine the direction of the legal market in the legal tech era.. Legaltech industry insiders said: “AIis not a technology that replaces lawyers., Infrastructure that improves the quality and productivity of legal services”saying “In order for Legal Tech to settle in the market, discussions on responsibility structure and ethical standards must be carried out in parallel with technological advancement.”said. [View full article] Changes in the legal landscape... How far has ‘Legal Tech’ come? (Shortcut)

■ Coupang's U.S. shareholders also file class action lawsuit: "Shareholder value was damaged by delayed disclosure" The issue of violation of SEC regulations appears to be a major blow as it is combined with a consumer lawsuit. Coupang's personal information leakage situation has spread into a class action lawsuit for shareholders in the United States. While the focus has been on consumer class action lawsuits surrounding personal information infringement, this time, even shareholders who raise issues about violation of disclosure obligations and damage to shareholder value have taken legal action. There are evaluations that cracks are appearing in Coupang's defense logic, which has argued that "there is no problem under U.S. law" regarding delayed disclosure. According to related industries on the 21st, the key issue of this shareholder class action lawsuit filed in the U.S. District Court for the Northern District of California is the fact that Coupang Inc, Coupang's parent company, failed to disclose the incident in a timely manner even after being aware of it, rather than the personal information leak itself. The plaintiff claims that Coupang only described cyber security risks at the level of ‘potential risk’ through quarterly reports (Form 10-Q), etc., but in reality, a large-scale personal information leak by a former employee had already occurred. As a result, investors made investment decisions based on distorted information. With this lawsuit, whether Coupang violated the disclosure regulations of the U.S. securities authorities is expected to emerge as a major issue. The U.S. Securities and Exchange Commission (SEC) requires disclosure within 4 business days when a serious cybersecurity incident occurs, but the plaintiffs believe that Coupang did not fulfill its obligation to disclose to the U.S. SEC within 4 business days from November 18, when it became aware of the incident. In relation to this, Coupang has maintained its position that “the personal information leak issue is not serious.” Coupang CEO Harold Rogers also said at a hearing held at the National Assembly on the 17th, “This matter is not classified as a serious incident by US standards, so there is no obligation to disclose to the SEC.” However, due to this shareholder class action lawsuit, Coupang's judgment itself has become subject to verification by the court. There is a greater possibility that the issue of whether a company can unilaterally judge the ‘gravity’ of an accident or whether it should be judged from the investor’s perspective will be dealt with in earnest in court. This lawsuit is also noteworthy in that it is different in nature from existing consumer class action lawsuits. While consumer class action lawsuits contend with a company's violation of its personal information protection obligations and invasion of privacy, shareholder class actions take issue with stock price declines and investment losses caused by the company's failure to disclose, financial information, and internal control. The underlying law is also the U.S. Securities and Exchange Act, not the Consumer Protection Act. An official from Daeryun Law Firm said, “In the case of a shareholder class action lawsuit, it could not only lead to the burden of a large settlement amount, but also lead to management liability issues and an SEC investigation, which could cause an immediate blow to corporate management.” In addition, there is an analysis that Coupang’s legal burden is growing further as a consumer class action lawsuit is underway at the same time. Previously, SJKP, the American branch of Daeryun Law Firm, officially filed a consumer class action lawsuit against Coupang Inc in the New York Federal Court on the 8th of this month (local time), and the number of participants in the lawsuit was reported to have reached about 2,000 in four days. In Korea, a number of law firms, including Cheong Law Firm and Jihyang Law Firm, have filed class action lawsuits against Coupang. Seong Woo-rin, an attorney at Dae-kyung Aju Law Firm (Limited), said, “In Korea, a consumer class action lawsuit for damage from personal information leakage and a shareholder class action lawsuit for stock price declines are underway simultaneously in the U.S.” He added, “In the case of shareholder lawsuits, the structure is to claim compensation for the decline in the value of stocks held, so there is a possibility that astronomical damages will be calculated on a much larger scale than the damage to personal information leakage.” “There is,” he said. He added, “Since the stock price has actually fallen, there is a possibility that the shareholders will win.” He added, “If the shareholder class action lawsuit and the consumer class action lawsuit are combined, Coupang can be seen as having entered a significant risk phase from a legal and financial perspective.” Reporter Lee Yong-seong (utility@sedaily.com)[View full article] When you lose, you pay astronomical amounts of compensation... Coupang 'beleaguered' due to burning legal risks (Click here)

Until pension receipt 5There are concerns that confusion may arise when the peak wage system was introduced if it is not linked to alternative wages, jobs, re-employment, and pensions to fill the annual gap. A sophisticated design of the wage system must be supported. 1969born in AMr. Coming 2029year retirement age(60count)When you retire, you will receive national pension. 5have to wait years. This is a time when savings are not enough and re-employment is not easy.. Our country has already 65The proportion of population over the age of 20%We have entered a super-aging society, exceeding, The total birth rate is 0.7While staying at Ming University, the decline in labor force became a reality.. On the other hand, the age for receiving national pension is 2033year 65The trend is gradually increasing until the age of. legal retirement age 60Between taxes and pension benefits 5This is why an income gap of about a year or so occurs structurally..Raising the retirement age fills this gap while also utilizing skilled workers for a longer period of time., It is being presented as a means to alleviate the financial burden of pensions.. However, youth employment declines, Increased labor cost burden, There are also many concerns about deepening generational conflict.. Korean society is now, 'retirement age 65How to prepare for the three eras'I am standing in front of a huge question:. There is considerable consensus on the direction of increasing the retirement age.. However, if you do not sufficiently prepare for increased corporate burden, etc. 2010A cautious legislative approach seems necessary as the confusion experienced when the peak wage system was introduced in 2018 could be repeated.. 'Legislation within the year' aimed ruling party, The Democratic Party of Korea's Special Committee on Retirement Age Extension presented three proposals. 2current retirement age 60From three 65Three scenarios were presented to labor and management, gradually raising the age to 30.. All three plans are the same in that they extend the retirement age., There are differences in speed and stage composition..1Ahn is 2028since 2036by year 2in year 1Raise the retirement age by years 8After years 65It is relatively quick to reach age 3.. 2Ahn is 2029since 2039by year 10over the years 61·62The three sections are 3every year 1year, 63·64The three sections are 2every year 1It is a compromise solution to raise the price by year.. last 3Ahn is 2029since 2041by year 12years 3every year 1Raise it by year, most gently 65It is a content that reaches the age of three.. All three plans raise the retirement age and re-employ retirees.(After retirement 1~2year re-employment)combined. The plan is to adjust the workforce gap around retirement age and the burden on companies.. The ruling party aims to enact legislation within the year, but, The final plan is expected to continue to be adjusted between the labor community's demands for speed and the management's concerns.. 15If you don't want to follow the footsteps of the peak wage system from a year ago,… It is difficult to deny the necessity of extending the retirement age.. In the reality of a super-aging society and an increase in pension starting age, 60Neglecting an income gap after retirement causes great anxiety for both individuals and society.. able to work longer, As the number of healthy seniors increases, the existing structure of forcing skilled workers to leave is also criticized as being irrational in terms of economic efficiency..However, the retirement age 'how much to raise' no less 'What kind of wage and employment structure will it be combined with?'is also important. If the retirement age is raised hastily and the connection with wages, jobs, re-employment, and pensions is lost, youth employment will decline., Labor costs soar, Side effects such as conflict between the older and younger generations may shake up the discussion on extending the retirement age.. 2013Due to the revision of the Elderly Employment Act in 2018, the statutory retirement age was raised. 60As the wage increased, many companies introduced the peak wage system to ease the burden of labor costs and maintain employment.. At the time, the law encouraged reform of the wage system by extending the retirement age and the introduction of a peak wage system, but the extent of the wage reduction was limited., target action, No specific guidelines were provided regarding age discrimination criteria, etc.. This gap was later filled by the courts.. The Supreme Court 2022In the case of the annual retirement age maintenance wage peak system, 'Does this constitute age discrimination without reasonable grounds?'The degree of wage reduction as a criterion for judging, Existence and substance of target measures, The use of resources saved by the wage peak system was suggested.. Since then, lower courts have ruled that the wage peak system introduced by companies is invalid.. Recently, even with regard to the retirement age peak wage system, a drastic reduction in wages cannot be justified just because the retirement age has increased., It was even judged that excessive wage adjustments combined with insufficient target measures were invalid..The result of leaving it up to field autonomy without setting clear standards at the legislative stage., The system introduced through social agreement between labor and management was belatedly invalidated by the court.. Companies now have the obligation to pay large amounts of wages, going back to the past.. This creates unpredictability for both workers and companies, and is also an undesirable result in terms of legal stability and trust protection principles.. Clear guidelines such as wage system are needed for this retirement age. 65The most important thing to watch out for in the three discussions is 65It is a hasty legislation that is only focused on the speed of achieving the goal.. In addition to raising the retirement age, legislators must hold specific and forward-looking discussions on at least the following issues:. First, regarding the company's wage system, how will the seniority-based wage system be converted to one centered on job and performance?, As a necessary measure in response to the extension of retirement age, separate legislation or clear guidelines are needed on what systems other than the peak wage system will be recognized.. Procedures related to retirement age and wage reform to prevent disputes similar to the peak wage system from recurring, It also seems necessary to clarify the standards for designing the wage system..Extending the retirement age is an inevitable task to increase the sustainability of an aging society.. However, if it is promoted in a way that undermines legal stability, it will diminish the company's mid- to long-term manpower and investment plans., This could ultimately come back as a headwind for jobs and growth.. Only when elaborate design is supported from the legislative stage 'retirement age 65three eras'will be able to settle on social trust. <Hankyung Law&Biz Author> Intae Bang, attorney at Daeryun Law Firm(intae.bang@gmail.com) [View full article] ‘Retirement age of 65’, if you try to eat quickly, you will get into trouble [Daeryun’s Biz law forum] (Shortcut)

Daeryun Law Firm announced on the 19th that it successfully completed a joint seminar on the theme of 'Strengthening disaster reduction and legal risk response capabilities for sustainable management' Daeryun Law Firm announced on the 19th that it had successfully completed a joint seminar on the theme of 'Disaster reduction and strengthening legal risk response capabilities for sustainable management'. Daeryun, which was held on the 16th, was held in the conference room of Daeryun's headquarters office in Yeouido, Seoul. It was prepared in cooperation with the Korea Corporate Disaster Management Association and the Korea Continuity Research Institute Co., Ltd. This seminar, which was prepared to explore practical corporate response measures in response to the expansion of the Severe Accident Punishment Act, was attended by practitioners in charge of disaster, safety and risk management within companies and showed great interest. The seminar consisted of a total of three sessions, with experts from each field appearing as presenters. In the first session, Yang Jun, CEO of the Korea Continuity Research Institute Co., Ltd., said, He gave a lecture on the topic of 'Measures for activating disaster reduction activities'. Representative Yang emphasized the need to respond to internal and external risks by combining the Severe Disaster Punishment Act and Business Continuity Plan (BCP). In particular, it was explained that a safety culture should be established that analyzes disasters by segmenting them according to severity and prevents even minor accidents from developing into major disasters through thorough investigation. The second session was led by Team Leader Jong-pil Park of the Korea District Heating Corporation and continued with his presentation on the topic, 'Why do companies' disaster safety measures fail in the field?' Team Leader Park pointed out the limitations of regulation-centered safety management through an analysis of the recent status of industrial accidents and called for a paradigm shift to an autonomous safety culture. In addition, through the case of the Korea District Heating Corporation's AI-based smart safety management platform, he introduced how digital transformation and new technology linkage lead to real-time on-site monitoring and improved safety levels for partners. In the last session, Attorney Jeong Sang-hyeok of the Daeryun Corporate Advisory Center gave a presentation on the topic of 'An organization's legal risk response in the event of a serious disaster.' Attorney Jeong looked at the background of the introduction of the Severe Accident Punishment Act and the structure of the provisions, while providing step-by-step guidance on the case handling procedures that companies must follow in the event of an accident. In addition, it analyzed key factors that determine punishment based on frequent accident cases such as falling and getting caught and actual judgments, and guided companies' practical prevention methods and response strategies. Daeryun Kim Kuk-il, CEO of Daeryun, said, "In the event of a disaster, the actual operation of the pre-emptive response system and the level of legal risk response are becoming key factors that determine the existence or failure of a company." Daeryun announced that since the expansion of the Serious Accident Punishment Act, it has expanded related centers within the corporate legal group and is providing customized legal advice and risk management services to companies through lawyers specializing in related fields such as labor and industrial accidents.[View full article] Jose Ilbo - Daeryun, disaster reduction and risk response seminar... “Presenting corporate crisis management practical solutions” (link) Money Today - Korea Corporate Disaster Management Association holds seminar with Daeryun and Korea Continuity Research Institute (Go here)

Daeryun Law Firm announced on the 18th that it will hold the '2026 Compliance Management/Sustainability Management ISO·ESG·CP Integrated Workshop' in collaboration with the Korea Compliance Institute (KCI). This workshop, which will be held at the Diamond Hall on the 3rd floor of the FKI Tower Conference Center in Yeouido, Seoul on January 30, 2026, will be held in order to preemptively inspect the company's core compliance and ESG strategies in response to the rapidly changing internal and external management environment. At this event, Daeryun will deliver an in-depth lecture dedicated to the CP (Compliance Program) session, which is the core of corporate legal affairs. Attorney Dae-ryun Son Gye-jun will be the speaker and will give presentations on topics such as analysis of key issues of the 2026 Fair Trade Act, risk management at each stage of subcontracting, and corporate practical response strategies. In addition, the workshop will feature a multifaceted program for sustainable management, such as the 2026 ESG government support project participation strategy and ISO 37001/37301 revision response guide. In addition, the 'Compliance & Ethics Awards' awards ceremony will be held to discover excellent companies that have contributed to establishing a culture of compliance. This workshop will be held for 200 people on a first-come, first-served basis both online and offline. Offline participants will be provided with lunch and souvenirs, and after the event, a networking session and prize drawing event will be held to exchange information between business executives. Applications for participation can be made through the official website of the Korea Compliance Agency. Daeryun Choi Yi-seon, CEO of Management and Head of AI and Compliance, said, "2026 will be an important turning point in which fair trade and ESG management determine the survival of companies. I hope that through this workshop, companies will be able to clearly understand issues of the revised Fair Trade Act and obtain clear solutions to practical difficulties such as subcontracting risks." Meanwhile, Daeryun has a corporate legal group. It provides comprehensive legal advice in areas related to corporate regulation, including collusion, subcontracting, and unfair trade practices. In addition, we provide one-stop support for advanced risk management solutions that combine legal expertise with the latest data technology through the ‘AI Compliance Center’ under the AI ​​and Data Intelligence Group led by Attorney Young-Gon Cho. Reporter Ga-Young Jin news@lawissue.co.kr[View full article] “Finding a solution for corporate survival”... Daeryun holds ESG·CP integrated workshop with KCI (Go here)

“Additional space is provided free of charge in response to tenant objections after signing the contract.” “It is difficult to see that there is intent… Fraud does not constitute a crime.” A landlord who was accused of tricking tenants into renting an unlicensed building and stealing tens of millions of won in deposits was cleared by the prosecution. According to the legal community on the 18th, the Uijeongbu District Prosecutors' Office decided not to indict Mr. A, a man in his 40s who was sent on charges of fraud on the 10th of last month. Mr. A, the landlord, last month In February, he signed a lease contract with tenant B for a warehouse building located in Gyeonggi-do and received a deposit of 50 million won. However, after signing the contract, Mr. B sued Mr. A, saying that he did not intentionally inform him that the building was an unlicensed and illegal building and that the actual area was smaller than the contracted area when he signed the contract. Mr. A completely denied the charges, saying, “When I purchased the building in 2022, I was not aware of the illegality because I was told by the previous owner that it had been used without problems for decades.” In addition, they argued that they did not intentionally deceive Mr. B because the district office's notification of the violating building was only made after the contract was signed in July 2024. The prosecution, which examined the case, decided that it was difficult to view Mr. A's actions as fraud. The prosecution said, “Not only did the complainant visit the site in person and check the building in detail before signing the contract, but when he raised an objection immediately after signing the contract saying that the actual area was small, the suspect immediately ordered the use of the additional space free of charge without rent. “I took action,” he said. If Mr. A had intentionally defrauded, there was no reason to provide additional area free of charge. Regarding the charge of deception related to illegal buildings, the prosecution said, “Considering that the timing of the correction order from the competent city hall is consistent with the suspect’s claim and that the building in question has been used without any problems before, it is difficult to say that the suspect entered into a contract with knowledge of the illegality.” Kim Ji-hee, lawyer at Daeryun Law Firm, who represents Mr. A, said, “For fraud to be established, deception is required.” “The intent of the act and defrauding must be proven,” he explained. “The client faithfully fulfilled his obligations, including making repairs at his own expense, and was able to get rid of the unfair charges by proving with objective evidence that he was not aware of the illegal building at the time of signing the contract.” Reporter Kim Mi-ji unknown@kyeonggi.com[View full article] They stole 50 million won by renting an unlicensed building... Building owner ‘not guilty’ (link)

<Anchor>Coupang reported this personal information leak to the U.S. Securities and Exchange Commission only four hours before the hearing. There are criticisms that the report was delayed to reassure American investors. The CEO of Coupang, who appeared at the hearing, said that although reporting was not mandatory, he made it public because of great interest. Reporter Seung-hoon Choi examined whether this claim was true. <Reporter> This is Coupang's public disclosure report disclosed to the SEC of the U.S. Securities and Exchange Commission at 6:13 am today (17th) our time. It was titled 'Significant Cybersecurity Incident' in the name of CEO Rogers. On the 18th of last month, up to 33 million customer names and phone numbers were reported. They were aware that personal information had been leaked, and wrote that Korean regulators were likely to impose financial penalties. CEO Rogers appeared at a hearing about four hours later and argued as follows. [Harold Rogers/CEO of Coupang: This type of information is not an incident requiring reporting under the U.S. Personal Information Act. So, we were not obligated to disclose it.] We said that we did not have an obligation, but we did so because we “considered that it is a situation that continues to attract attention.” Is that really true? If a U.S. listed company determines that a security incident is serious, it must report it to the SEC within 4 days in the form 8-K. The Coupang report released today says “significant” from the title, and the form was written in 8-K. Although it was a report submitted in accordance with the disclosure obligation, it is claimed that there was no obligation to disclose it. It is pointed out that the facts are inconsistent. [Son Dong-hoo/Attorney, New York, USA: Disclosure of serious cyber security incidents is (soon) mandatory. [They submitted the 8-K because it had a ‘significant impact.’] The report does not mention when Coupang judged this incident to be ‘significant.’ There are also suspicions that it is trying to avoid fines for delayed disclosure by arguing that it knew about the leak a month ago, but judged it to be significant only recently. Amid growing criticism, Deputy Prime Minister for Science and Technology Bae Kyung-hoon is discussing with the Fair Trade Commission the suspension of Coupang’s operations. (Video editing: Seong-Hoon Jeong, Design: Ye-Eun Jang) Reporter Seung-Hoon Choi noisycart@sbs.co.kr[View full article] ‘United States public announcement’ only 4 hours before the hearing… A serious accident now? (Shortcut)

[Anhamuin Coupang, effective competition is the answer] Lina Khan’s warning… A structure in which illegal profits are greater than fines [Editor's Note] There is an analysis that Coupang's continued controversies and absence from the National Assembly resulted from the absence of a check force in the market. Structural problems in which the profits from a monopoly position are judged to be greater than regulatory costs such as fines are also considered to be the cause. It is pointed out that the government's artificial intervention or moral appeal alone has its limits. Normalizing the distribution ecosystem by restoring ‘effective competition’ and establishing prior regulations in line with global standards are presented as fundamental solutions. There is criticism that Coupang's repeated controversies stem from capitalist profit and loss calculations in which 'the profits gained from illegal activities are greater than fines.' Experts advise that it is urgent to introduce a system that imposes punitive compensation that affects the existence of a company and holds direct criminal responsibility for management. According to the industry on the 18th, Coupang has been sanctioned several times for violating the Fair Trade Act, but was imposed a low fine compared to its sales volume. Following 8 million won in false and exaggerated advertising in 2017, 3.297 billion won in abuse of power against suppliers in 2021, and 400 million won in violation of the Subcontracting Act in 2022, the company was fined 162.8 billion won last year for algorithm manipulation. Coupang expects annual sales of 50 trillion won this year. Assuming that 15 million WoW membership subscribers pay the monthly fee without leaving each month, Coupang's annual sales from subscription fees alone are more than 1.4 trillion won. The calculation is that even if the Fair Trade Commission imposes fines worth trillions of won, it will be difficult to damage the company's financial structure. Former Chairman of the U.S. Federal Trade Commission (FTC), Lina Khan, an expert in big tech antitrust regulation, said, "If the profits gained from violating the law are greater than the fine, it is a failure of law enforcement," and emphasized, "We should not allow a situation where fines are simply regarded as business costs." Industry official A said, "Coupang is a supplier with labor issues." He criticized the company, saying, “Despite all-round criticism, including abuse of power and government regulations, we are consistently refusing to respond under the pretext of ‘customer convenience.’” He added, “This is a method rarely seen in Korean companies.” Legal experts say, "Criminal charges are more effective than fines... Punishment of those responsible must be strengthened." Gye-Jun Son, a lawyer at Daeryun Law Firm, said, "Companies with large sales do not care much about the amount of fines imposed by the Fair Trade Commission," and suggested strengthening 'criminal punishment' for top managers as a solution. He is an expert in the field of fair trade who has served in key positions at the Fair Trade Commission, including the Subcontracting Division, Cartel Division, and Litigation Affairs Office. Attorney Son explained, "What companies are most afraid of is the CEO being reported to the prosecution," adding, "Companies become nervous only when a separate investigation is conducted in addition to the Fair Trade Act and the CEO is directly the subject of investigation." He went on to suggest, “We need to strengthen the criminal punishment provisions specified in individual laws such as the Personal Information Protection Act and make the CEO, the top person in charge, take legal responsibility when a serious illegal act occurs to create deterrence.” This is an analysis that could put direct pressure on executives such as Coupang Chairman Kim Beom-seok, who has recently been controversial for failing to attend the National Assembly. Experts emphasize a regulatory shift from 'post-detection detection' to 'proactive discipline'. A representative example is the ‘Platform Fair Competition Promotion Act’ (Platform Act) being promoted by the Fair Trade Commission. The goal is to designate market-dominant business operators in advance and block the four major illegal practices, such as preferential treatment and tie-in sales. There is also a need to introduce a 'temporary suspension order' that immediately suspends services if irreparable damage is expected even before a final judgment is made. It is a device to prevent market disruption caused by continued illegal activities. There is an urgent need to shift the burden of proof in the EU style and expand punitive damages in the Korean style. Shifting the burden of proof and expanding the punitive damages system to increase the effectiveness of regulations are also tasks. For cases that are difficult to prove, such as algorithm manipulation, platform companies should be held responsible for proving their integrity when suspicions are raised, as in the European Union's Digital Market Act (DMA). Some argue that the 'punitive damages system' introduced in the domestic subcontracting law should be expanded to cover all platform monopoly activities. Currently, the Subcontracting Act stipulates compensation of three times the actual loss for five major acts, such as unfair price reduction and cancellation of consignment. Since last August, liability for compensation for technology theft has been strengthened up to five times. Attorney Son argued, "The United States' triple punitive damages system was introduced because it was proven to be effective in suppressing actual illegal activities," and added, "As there is discussion in Korea that the compensation limit should be increased up to 10 times to resolve the recent controversy over punitive punishment, we should consider introducing an effective penalty." On the 17th, the National Assembly's Political Affairs Committee discussed personal information leaks, etc. An amendment to the Personal Information Protection Act was passed, raising the upper limit of fines for serious violations from 3% of total sales to a maximum of 10%. If this law is applied, Coupang's fine will increase to a maximum of 5 trillion won. However, Coupang's information leak occurred before the amendment was passed, so it is excluded from retroactive application. Accordingly, Song Kyung-hee, chairman of the Personal Information Protection Committee, said, "There is a need to consider imposing a punitive fine, even through the enactment of a special Coupang law or separate legislation." Reporter Hwang Jeong-won (jwhwang@mt.co.kr)[View full article] [S Report] ③Coupang’s 5 trillion won is also ‘a cotton bat’… “Criminal punishment is also a solution” (Shortcut)

Daeryun Law Firm announced on the 17th that it has signed an MOU with the Korea Law Academy and established a support model for nurturing professional talent in the legal affairs field and linking employment. The signing ceremony held on the 12th at Daeryun Law Firm's main office located in Park One, Yeouido, was attended by Park Dong-il, CEO of Daeryun Law Firm, and Korea Law Academy CEO Yang Sang-won and Director Lee Jong-hyeon. Korea Law Academy is an excellent training institution that has ranked first in the employment rate and number of employed people in the legal affairs field for 10 consecutive years from 2016 to this year, focusing on differentiated educational content and practice under the goal of ‘employing all trainees.’ It has been leading the industry through programs. In particular, it has been recognized for its reputation for practical education based on employment performance, such as being selected as an excellent training institution among domestic legal training institutions three times in a row, and awarded an appreciation plaque as an institution with an excellent employment rate by the Seoul Southern Employment Branch. Based on this MOU, both organizations plan to provide various practical opportunities in fields related to talent training. Specifically, we plan to assist in ▶ planning a curriculum centered on basic legal office job competencies and service mind, ▶ case-based practical training to strengthen adaptability to the field, and ▶ strengthening employment linkage based on talent matching. Yang Sang-won, CEO of Korea Law School, said, “Not only professionalism, but also attitude towards customers and service mind are important for legal clerks,” adding, “Through cooperation with Daeryun, we will help trainees settle down stably in the law firm field and start their careers. “We will help,” said Dong-il Park, CEO of Daeryun Law Firm. “Daeryun is driving customer satisfaction by providing customer-centered legal services and operating an innovative work system.” He also said, “Through this MOU, we will strengthen the practical talent training system and further improve the quality of legal services.” Meanwhile, Daeryun Law Firm is striving to strengthen the quality of legal services by continuously upgrading the digital-based work environment, including the introduction of an AI consultation system and an internal litigation support platform. [Law Leader] Reporter Son Dong-wook twson@lawleader.co.kr Daeryun Law Firm signs MOU with Korea Law Academy... “Establishment of a legal affairs talent training system” (link)