From Labor Disputes to Fair Trade Penalties, Coupang Faces Its Toughest Test Yet (Yonhap)
SEOUL, Nov. 5 (Korea Bizwire) — Coupang reported record-high sales for the third quarter of 2025, buoyed by increased customer spending on its Rocket Delivery service and rapid growth in new ventures such as its Taiwan operations and Coupang Eats.
Yet analysts warn that the company’s profitability remains stagnant, with operating margins stuck in the low single digits despite soaring revenue.
Coupang Inc., the Korean e-commerce giant’s U.S.-listed parent company, said Wednesday that revenue jumped 20 percent year-on-year to 12.85 trillion won (US$9.27 billion), marking its strongest quarter to date.
Growth was led by a robust 18 percent rise in its core “product commerce” segment — including Rocket Delivery, Rocket Fresh, Marketplace, and Rocket Growth — and a 31 percent surge in new business areas such as Taiwan and food delivery.
Chief Financial Officer Gaurav Anand credited the performance to higher consumer spending and favorable calendar effects, noting that South Korea’s holiday season arrived earlier than usual this year, boosting sales in the quarter. He also cited “rapid expansion” in Taiwan and steady gains at Coupang Eats as key drivers.
Chairman Bom Kim said customer acquisition in Taiwan mirrors the early trajectory of Coupang’s retail business in Korea, adding that the company is strengthening local logistics and expanding its last-mile delivery network there.
Coupang, Korea’s largest e-commerce platform, is focusing on expanding its Taiwan operations. (Image courtesy of Yonhap)
Despite these achievements, Coupang’s operating profit remained flat at 224.5 billion won ($162 million), up 51.5 percent from a year earlier but barely higher than in previous quarters.
Its operating margin stayed at 1.7 percent, while net profit margin was just 1 percent. Bloomberg reported that the results fell short of market expectations, with analysts forecasting operating profit closer to $210 million.
Coupang’s growth comes amid fierce competition in South Korea’s e-commerce market. Naver has strengthened its online shopping business through a new app and partnerships with Kurly, while Chinese platforms such as AliExpress and Temu are expanding aggressively.
Losses in Coupang’s new business division, which includes its Taiwan venture, widened to 404.7 billion won ($292 million) in the third quarter, up 134 percent from a year earlier, reflecting heavy investment in logistics and infrastructure. The company now expects full-year adjusted EBITDA losses in the segment to reach as much as $950 million.
At the same time, Coupang continues to face public criticism over labor issues, unpaid severance disputes, and alleged political interference in investigations involving its logistics arm. Several executives, including CEO Park Dae-jun, were called before parliamentary committees last month, and one probe has been referred to a special prosecutor.
While Coupang’s aggressive expansion reinforces its position as Korea’s dominant online retailer, its thin margins, regulatory scrutiny, and intensifying competition underscore the challenges ahead for a company striving to balance scale with sustainable profitability.
Ashley Song (ashley@koreabizwire.com)
