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Coupang sets new record in Korea with over $27 bn sales in 2024
By Lee Seon-hui and Chang Iou-chung, Pulse by Maeil Business - South Korean e-commerce giant Coupang Inc. is estimated to have reaped 40 trillion won ($27.23 billion) in sales last year, the first in the country’s retail industry.
According to sources from the retail and securities sectors on Monday, Coupang achieved this milestone just one year after becoming the first single retail company in Korea to surpass 30 trillion won in annual revenue in 2023.
The company is also expected to maintain its profitability streak for the second consecutive year.
Founded in 2010 as a mobile social commerce platform, Coupang posted operating losses for 13 years before swinging to profit in 2023.
Coupang is expected to announce its earnings in February.
Coupang’s growth has been fueled by the expansion of the online shopping market, innovative delivery services, and efficient operations, according to sources.
Key offerings such as membership with delivery and streaming service benefits and the overnight Rocket Delivery service, which now covers 70 percent of the country, have continued to develop and drive revenue growth.
In 2024, Coupang’s sales reached 9.5 trillion won in the first quarter, surpassed 10 trillion won in the second quarter, and 10.69 trillion won in the third quarter.
The company, however, faces challenges with low operating margin.
Coupang’s average operating margin in the first three quarters of 2024 stood at 0.5 percent, lagging behind its rivals including E-mart Inc. (0.6 percent) and Lotte Shopping Co. (3 percent).
Coupang plans to invest an additional 2.4 trillion won in 2025 and 2026, which is in contrast to its competitors that are cutting costs.
Coupang aims to reach a cumulative investment of 9 trillion won in logistics infrastructure.
This year, the company plans to open a new fulfillment center in Gimcheon, North Gyeongsang Province, with operations beginning in September.
This addition follows the 2023 completion of fulfillment centers in Gwangju and Namdaejeon.
Ongoing projects in Gangseo, Busan, and Icheon, Gyeonggi Province, are expected to be operational next year, along with a new center in Jecheon, North Chungcheong Province, set to break ground in the first half of this year.
By the end of 2025, Coupang plans to operate nine logistics centers nationwide, ensuring near-complete coverage for its overnight Rocket Delivery service.
Currently, Rocket Delivery reaches 70 percent of the country’s administrative regions (182 out of 260), with coverage projected to rise to 230 regions by 2027.
By connecting logistics centers with sub-hubs, Coupang aims to achieve full nationwide coverage.
With sub-hub investments included, the company’s total logistics investment is projected to reach 10 trillion won.
Sub-hubs, which naturally form near major logistics centers, play a crucial role by sorting and shipping goods to delivery camps. They also store high-demand products for immediate dispatch.
“Regions experiencing population decline, where large supermarkets are scarce, will see improved shopping experiences and quality of life with expanded overnight delivery services,” said a Coupang official.
Coupang’s investments go beyond logistics, with a focus on regional development, job creation, and support for rural communities.
According to the National Pension Service, Coupang and its logistics subsidiaries directly employed 80,400 people as of November 2024, a 16 percent increase from the 69,057 employees in 2023.
This represents a 27-fold increase compared to 2014, when Rocket Delivery launched with just 2,968 employees.
Coupang plans to invest 3 trillion won by 2026 to create 10,000 additional jobs, potentially increasing its workforce to 90,000.
The company estimates that more than 80 percent of these new jobs will be created outside the Seoul metropolitan area, helping to slow population decline in regional economies.
Coupang also noted that expanding its logistics network will benefit regional farms and small businesses by allowing the rapid delivery of their products.
