Why Was Kim Bom-Suk's Close Ally Harold Rogers Urgently Dispatched from Coupang U.S. Headquarters?

[Korea Financial Times, Park seulgi] CEO Park Dae-jun of Coupang, who said he would "take all responsibility," resigned on December 10. Interpretations suggest he was effectively removed as the personal information leak incident spread uncontrollably. His successor is Harold Rogers, Chief Administrative Officer and General Counsel (CAO & General Counsel) of Coupang Inc., the U.S. parent company. He is known as Chairman Kim Bom-Suk's closest confidant and Coupang's number two. However, attention is focused on the background as this personnel change was made one week before the Science, ICT, Broadcasting and Communications Committee (Science Committee) hearing.

Following CEO Park's resignation on December 10, Coupang appointed Harold Rogers as interim CEO. Coupang stated, "This is to actively resolve the incident and alleviate customer anxiety," and "We plan to focus on organizational stabilization while resolving internal and external crises."

CEO Rogers joined Coupang in January 2020. A Harvard University alumnus like Chairman Kim Bom-Suk, he is known as 'Kim Bom-Suk's confidant.' He is known as one of Kim Bom-Suk's closest associates to the extent that he is called 'Coupang's number two.' After being appointed, Harold Rogers said in an internal message, "Our priorities are clear. We will thoroughly respond to this incident and restore trust."

However, various speculations arise regarding his sudden appointment. While some argue that it reflects the will to resolve the incident as Coupang explains, there are also criticisms that putting a foreigner from the U.S. headquarters at the forefront is a 'liability cutoff' strategy to avoid appearing at the hearing. At the same time, analysis suggests that Rogers, a legal expert, will focus on managing legal risks going forward.

The Science, ICT, Broadcasting and Communications Committee has decided to hold a hearing on December 17 regarding the Coupang personal information leak incident. On December 9, a plenary session was held to adopt 9 witnesses and 5 reference persons, including Coupang Inc. Chairman Kim Bom-Suk, Coupang CEO Park Dae-jun, Kang Han-seung (Coupang North America Business Development Head, former Chief Management Officer), and Brett Mathis (Coupang CISO).

The 'core' of this hearing is whether Chairman Kim Bom-Suk will attend. The National Assembly has consistently requested his attendance at audits and emergency inquiries, but he has mostly not responded citing reasons such as 'overseas stay.' After CEO Park attended the emergency inquiry but failed to clearly answer various questions and said "I have not seen Chairman Kim even once this year," it became clearer that Chairman Kim's substantial influence is significant.

However, with the appointment of new CEO Rogers, the prevailing view is that the likelihood of his attending the hearing is low. As CEO Rogers stated he would attend the hearing, forecasts suggest he will effectively replace Chairman Kim. However, it is reported that the Science, ICT, Broadcasting and Communications Committee is considering forced summons or criminal complaints if Chairman Kim does not attend.

Public opinion surrounding Coupang continues to deteriorate. Although CEO Park Dae-jun resigned, news spread that he had a closed lunch meeting with Democratic Party Floor Leader Kim Byung-ki in September ahead of the audit.

Additionally, criticism is rising as news of terms-of-service amendments unfavorable to users became known, including 'hacking immunity' clauses and restrictions on immediate withdrawal. Regarding this, the Personal Information Protection Commission stated, "It makes the company's immunity for damages due to intentional negligence and the burden of proof unclear, conflicting with the purpose of the Personal Information Protection Act and causing unnecessary confusion for users," and instructed the clauses to be revised.

The government is also continuing strong criticism. Prime Minister Kim Min-seok said about Coupang's personal information leak incident, "It has exceeded serious levels," and pointed out, "Protecting citizen information in digital society is the most basic responsibility of platform companies."

Police searches also continue. Following high-intensity searches lasting over 10 hours each for two days starting December 9, successive searches are reportedly being conducted as the materials to be secured are extensive.

Meanwhile, newly appointed CEO Harold Rogers is a legal expert who graduated from Brigham Young University's English Literature department and completed a Juris Doctor (J.D.) program at Harvard Law School. He has experience with major law firms and global companies. From 2006 to 2016, he worked as a partner attorney at major U.S. law firm Sidley Austin LLP, and from 2016 to 2019, he served as Executive Vice President and Chief Ethics and Compliance Officer at global telecommunications company Millicom.

Coupang said, "We deeply apologize for causing concern with the personal information leak incident," and "We will do our best to strengthen information security and restore trust to prevent recurrence."

Park seulgi (seulgi@fntimes.com)