Coupang Inc. (NYSE: CPNG) Plunge 6.49% as Data Breach and Regulatory Scrutiny Drive Share Price to 2025 Low

The share price fell to its lowest level since April 2025 today, with an intraday decline of 6.49%.

Coupang Inc. (NYSE: CPNG) has faced mounting pressure following a massive data breach in its South Korean operations that exposed sensitive information of 34 million users. The incident, which took months to detect, led to the resignation of the CEO of Coupang’s South Korean unit on December 10. The company’s delayed response and absence of key executives during a parliamentary hearing on December 17 further intensified scrutiny, drawing criticism from lawmakers and regulators. A securities class action investigation by the Rosen Law Firm has also been launched, alleging potential securities violations tied to the breach.

The crisis has triggered a broader erosion of investor confidence, compounding Coupang’s six-day losing streak. The stock has fallen 15.15% over the past six sessions, reflecting concerns over regulatory penalties, reputational damage, and competitive threats. South Korean authorities are investigating potential misuse of the stolen data, while lawmakers push for stricter accountability measures. Analysts note that Coupang’s market position in the region could weaken as rivals capitalize on the fallout, with long-term risks to customer retention and operational costs looming. The situation underscores the growing regulatory and governance challenges for tech firms in data-sensitive markets like South Korea.

South Korea’s data protection laws are among the strictest in the world, and the breach has reignited debates about corporate accountability in the digital economy. Regulators are now considering whether to impose additional compliance requirements on e-commerce platforms. Meanwhile, Coupang is reportedly accelerating its cybersecurity upgrades, though analysts remain skeptical about whether these measures will restore consumer trust. The company’s customer base, particularly in South Korea, has historically been a key strength, but recent trends suggest an uptick in user attrition.

As the stock continues to struggle, the broader market is watching closely to see if Coupang can implement a successful turnaround strategy. The company has announced a series of internal reforms, including an expanded board of directors and an independent cybersecurity task force. However, with the share price remaining near multi-year lows and multiple investigations still in progress, the road to recovery remains uncertain. Investors are also keeping an eye on rival companies, which appear to be gaining traction in Coupang’s core markets.