Item 1.05. Material Cybersecurity Incidents.
On November 18, 2025, Coupang Corp. ("Coupang Corp."), a wholly-owned Korean subsidiary of Coupang, Inc. (Coupang Corp., together with Coupang, Inc. ("Coupang, Inc.," "our," or "we") and its subsidiaries and affiliates, "Coupang,"), became aware of a cybersecurity incident involving unauthorized access to customer accounts (the "Incident"). Upon discovery, Coupang activated its incident response processes, disabled the threat actor's unauthorized access, reported the Incident to the relevant Korean regulatory and law enforcement authorities, and warned customers whose data was potentially accessed.
Based on investigative findings, Coupang has determined that a former employee may have obtained the name, phone number, delivery address, and email address associated with up to 33 million customer accounts, and certain order histories for a subset of the impacted accounts. To Coupang's knowledge, the former employee has not publicly disclosed the obtained data. No Coupang customers' banking information, payment card information, or login credentials were obtained or otherwise compromised in the Incident. Coupang is continuing its investigation and has engaged external forensic experts to assist with the investigation. Korean regulators have initiated investigations with which Coupang is fully cooperating. While one or more Korean regulators will potentially impose financial penalties, at this time we cannot reasonably estimate any amount of losses or range of losses that may result from such penalties.
Coupang's operations have not been materially disrupted. Coupang remains subject to various risks due to the Incident, including diversion of management's attention and potentially material financial losses resulting from the potential loss of revenue and potential higher expenses, including from remediation, regulatory penalties, and litigation.
The former chief executive officer of Coupang Corp., our Korean subsidiary, resigned on December 10, 2025, and Harold L. Rogers, General Counsel and Chief Administrative Officer of Coupang, Inc., is serving as interim chief executive officer of the Korean subsidiary.
Forward-Looking Statements
This report contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our expectations regarding the Incident and its impact on Coupang. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," "shall," "goal," "objective," "seek," "strategy," "future," "opportunity," "runway," "trajectory," or "would," and the negative of these words or other similar terms or expressions. Such forward-looking statements include, but are not limited to, statements regarding the nature and scope of the Incident, the ongoing investigations regarding the Incident, and the impact of the Incident on Coupang. Actual results and outcomes could differ materially for a variety of reasons, including, among others, Coupang's ongoing assessment of the impacts of the Incident, including the potential discovery of additional information related to the Incident; Coupang's expectations regarding its ability to contain and remediate the Incident; the magnitude of the potential disruption to Coupang's business and operations; the impact of the Incident on Coupang's relationships with customers, employees, merchants, suppliers, advertisers, investors, regulators and governmental authorities; legal, reputational, and financial harm that may result from the Incident, including financial penalties and litigation awards or settlements that may arise from regulatory investigations or litigation in connection with the Incident; distraction of management or other diversion of resources from business operations caused by the Incident; and the potentially material financial impact of the potential loss of revenue and potential higher expenses, including from remediation, regulatory penalties, litigation, customer compensation, or other additional expenses that may be incurred and borne by Coupang in connection with the Incident. Coupang is also subject to other risks and uncertainties. For additional information on other potential risks and uncertainties that could affect Coupang, please see our most recent Annual Report on Form 10-K and subsequent SEC filings. All forward-looking statements in this report are based on information available to Coupang and assumptions and beliefs as of the date hereof, and Coupang disclaims any obligation to update any forward-looking statements, except as required by law. You should not place undue reliance on our forward-looking statements.