April 15, 2016

Coupang Becomes Nation’s First E-commerce Firm to Break 1 Trillion Mark in Sales

Business Korea

Coupang, South Korea’s leading e-commerce operator, released its business results in 2015.

The company posted 1.13 trillion won (US$ 978.78 million) in sales last year, becoming the first social commerce operator to break the 1 trillion mark in the nation. The figure jumped by 3.3 times from 348.5 billion won (US$301.86 million) of sales in 2014. Despite the outstanding sales growth, it logged 520 billion won (US$450.41 million) in operating losses due to big investments in logistics and its delivery service. However, it was a planned deficit, said Coupang.

In fact, the investments in logistics and ultra-fast delivery service called "Rocket Delivery" accounted for 89 percent of the 520 billion won (US$450.41 million). So, it is more like a preemptive investment to expand its business in the future.

As Coupang also revealed the financial statement to prove its financial soundness, the company dismissed the recent claims about its liquidity crisis.

Coupang CEO Kim Beom-seok said, “Coupang starts the practice only when we believe that it offers a radical and new experience to customers. For this reason, we need a long-term, innovative and customer-centered approach. The company posted a gain within only two years of its founding. If we had satisfied with just making profits, we would have become one of small and mid-size online shopping malls now. However, that doesn’t offer any revolutionary experience to the market and consumers. So, Coupang made a preparation for a new challenge once again.”

He added, “We have enough funds from the investments attracted and our investors have a firm belief in Coupang.”