13 Trillion Won, 14.8 Million People... The Unveiled Rocket Growth of Coupang

Last Year's Sales Doubled, Deficit Steadily Decreasing
3 Out of 10 Citizens Use It... Paid Members' Purchasing Power 4 Times Higher

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] "Last year's sales were 13.25 trillion KRW, with 14.8 million customers and a cumulative deficit of 4.5 trillion KRW."

As Coupang officially announced its listing on the New York Stock Exchange, the previously concealed management status was revealed. It showed "rocket growth" benefiting from the increase in non-face-to-face online shopping due to the COVID-19 pandemic last year. Despite a cumulative deficit exceeding 4 trillion KRW, Coupang plans to expand new businesses and continue large-scale investments.

According to the securities registration statement submitted by Coupang to the U.S. Securities and Exchange Commission (SEC) on the 12th (local time), last year's sales were approximately 13.25 trillion KRW, nearly double the previous year's 7.1 trillion KRW. The deficit was 525.7 billion KRW, about 150 billion KRW less than the previous year's 720.5 billion KRW. Coupang, which has continued bold investments in logistics infrastructure such as building more than 100 logistics centers nationwide, had a cumulative deficit of 4.5 trillion KRW as of the end of last year. However, the deficit has been steadily decreasing since peaking in 2018.

Last year, it was found that 3 out of 10 people in South Korea had experience using Coupang. The number of active customers who purchased products at least once on Coupang was 14.8 million in the fourth quarter of last year, a 25.9% increase compared to the same period the previous year. Each active customer spent about 283,000 KRW per quarter. This is a 59% increase compared to the fourth quarter of 2019 (178,000 KRW). Paid membership "Rocket Wow," which costs 2,900 KRW per month, accounted for 32% of active customers in the fourth quarter of last year. These loyal Rocket Wow members purchased more than four times as frequently as general members.

It is also noteworthy that the purchase amount of Coupang subscribers has been increasing over time. Customers who made their first purchase in 2016 spent 1.37 times their first-year purchase amount in 2017. Subsequently, they spent 1.8 times in 2018, 2.7 times in 2019, and 3.5 times last year.

Coupang explained the rapid growth trend of Korea's e-commerce market and announced plans to continue large-scale investments for the time being. It also stated that "the business can be expanded to other countries," leaving the possibility of overseas expansion open. Kim Beom-seok, Chairman of Coupang's Board, promised to grant company shares worth up to 100 billion KRW to frontline employees such as "Coupang Friends (Coupangmen)" and announced plans to hire 50,000 new employees by 2025.

Chairman Kim received a total compensation of $14,341,229 (approximately 15.8 billion KRW), including an annual salary of $886,000 (about 980 million KRW) and stock-based bonuses last year. Chief Technology Officer Tuan Pham received a total compensation of $27,640,000 (approximately 30.5 billion KRW).

This content was produced with the assistance of AI translation services.