A Coupang logistics center in South Korea (Image courtesy of Yonhap)
SEOUL, Feb. 27 (Korea Bizwire) — Despite a sluggish consumer economy, Coupang Inc. achieved a major milestone in 2024, surpassing 41 trillion won (approximately $29 billion) in annual revenue. The e-commerce giant, founded in 2010 with just 3 billion won ($2.1 million) in capital, has cemented its position as South Korea’s dominant online retailer.
Coupang’s success stems from its aggressive expansion strategy, including the industry-defining Rocket Delivery system, a loyal customer base via its Wow Membership, and acquisitions such as luxury online marketplace Farfetch. However, increasing competition from domestic and global rivals is expected to challenge Coupang’s continued growth.
Unparalleled Growth: 86-Fold Revenue Increase in 14 Years
Since disclosing financials in 2013, Coupang’s revenue has skyrocketed 86 times, from 4.78 trillion won to 41.3 trillion won ($2.1 billion) in 2024. It first crossed the 1 trillion won mark in 2015, reached 13 trillion won by 2020, and surpassed 20 trillion won upon its 2021 New York Stock Exchange listing.
Its annual revenue has nearly doubled every two years, with a compound annual growth rate of over 60% in its early years and 23% since its IPO.
Coupang’s revenue now outpaces major South Korean retail giants, including Lotte Shopping (13.9 trillion won) and Shinsegae Group (35.6 trillion won). It also eclipses combined revenue from leading tech platforms Naver (10.7 trillion won) and Kakao (7.9 trillion won). Ranked among the country’s top 30 listed companies, Coupang’s revenue rivals industry heavyweights in finance, energy, and construction.
In South Korea’s e-commerce market, Coupang has established a dominant lead. Its 2024 gross merchandise volume (GMV) was estimated at 55.1 trillion won—surpassing combined figures from Naver and Gmarket. Coupang alone accounted for nearly a quarter of South Korea’s total e-commerce transactions, valued at 242 trillion won.
Rocket Delivery and Wow Membership: Key Growth Drivers
Coupang’s rapid ascent has been fueled by its unparalleled logistics network. Over the past decade, it has invested 6.2 trillion won ($4.3 billion) to establish 100 fulfillment centers across 30 regions, enabling same-day and overnight Rocket Delivery services.
As of 2024, 70% of South Korea’s population lives within a Rocket Delivery service zone, and the company aims to expand nationwide by 2026 with an additional 3 trillion won investment.
Coupang has also enhanced its delivery services, extending Rocket Wow same-day order deadlines to noon and expanding its fresh food overnight delivery offerings by 30%. In Q4 2024 alone, same-day and overnight deliveries surged by 45%.
The company’s active customer base has steadily increased, from 14.8 million in 2020 to 22.8 million in 2024. Its Wow Membership program, launched in 2019, has grown by over 30% annually, reaching 14 million members by the end of 2024. Coupang’s international expansion, beginning with Taiwan in 2022, and its acquisition of Farfetch further bolstered its growth.
The company’s expansion of its Rocket Delivery service to cover 80% of all cities, counties, and districts nationwide, along with a broader range of direct-purchase items, has been instrumental. (Image courtesy of Yonhap)
Challenges from Naver and Rising C-Commerce Rivals
Despite its dominance, Coupang faces mounting competition from Naver and emerging Chinese e-commerce firms. Naver, its closest domestic rival, is set to launch a dedicated shopping app in 2025, integrating AI-driven personalization and expanding its rapid delivery options.
The company’s membership base, boosted by a Netflix partnership, is growing at a pace that could rival Coupang’s customer loyalty program.
Meanwhile, Chinese e-commerce giants, led by Alibaba’s AliExpress and Temu, are gaining traction in South Korea with ultra-low prices. AliExpress recently formed a joint venture with Gmarket, leveraging the platform’s extensive seller network to strengthen its local market presence.
Industry observers view this partnership as an anti-Coupang alliance, intensifying competition.
South Korean firms like Gmarket, 11st, and Kurly are also ramping up efforts to close the gap by expanding seven-day delivery services. At the same time, regulatory challenges—ranging from labor conditions for warehouse workers and couriers to concerns over Coupang’s impact on small businesses—could add further obstacles to its expansion.
“With Naver doubling down on e-commerce, the rise of C-commerce, and improved logistics from competitors, 2025 could bring more volatility to the e-commerce landscape,” said an industry expert. “These factors could challenge Coupang’s growth trajectory and reshape the competitive dynamics of the market.”
Despite looming challenges, Coupang remains South Korea’s undisputed e-commerce leader, poised to shape the future of online retail in the years ahead.
Ashley Song (ashley@koreabizwire.com)
