Research Article

Coupang Is The "Amazon of Korea"

Oct 24, 2023

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Feb 7, 2024

Business Overview / Sources of Revenue

Coupang, Inc. (CPNG) is a leading South Korean e-commerce company founded in 2010 by Bom Kim and headquartered in Seattle, Washington. The company operates through two main segments: Product Commerce and Developing Offerings[3][4].

Coupang's core business includes retail e-commerce, logistics, and delivery services in South Korea, often compared to Amazon for its comprehensive offerings[4]. The company generates revenue through:

- Direct product sales through its owned inventory
- Commissions from third-party marketplace sellers
- Fulfillment and logistics services through its "Rocket Delivery" program
- Advertising on its platforms
- Diversified services including Coupang Eats (food delivery), Coupang Play (streaming), Rocket Fresh (grocery delivery), and fintech services[2][3][4]

In Q2 2024, Coupang reported net revenues of $7.3 billion (up 25% YoY) and gross profit of $2.1 billion (up 41% YoY), with its Product Commerce segment generating an adjusted EBITDA of $530 million[5].

Revenue Growth Potential and Recurrence

Coupang, Inc. (CPNG) doesn't explicitly report recurring revenue figures in the search results, though its business model as an e-commerce platform suggests some level of customer retention. The company reported net revenues of $7.9 billion in Q1 2025, up 11% year-over-year and 21% on an FX-neutral basis[1].

Regarding growth potential, Coupang has demonstrated strong historical performance with revenues growing at an average rate of 17% per year[5]. More impressively, the company grew revenues by 40% annually from 2018-2023, reaching approximately $27 billion in annual sales[3]. Current annual revenue appears to be around $30.27 billion[4].

Based on these trends, Coupang shows significant growth potential for the next 5+ years. While exact future growth rates aren't provided, the company's consistent double-digit growth suggests it could maintain strong momentum, potentially continuing at 15-20% annually if it sustains its current trajectory and market expansion.

Economic Moat Factors

Coupang has established a narrow economic moat in South Korea's e-commerce market, primarily derived from its intangible assets centered on rapid delivery service[1]. As South Korea's largest retailer by retail value, Coupang has significantly increased its market share from 6.8% in 2020 to 13.3% in 2023[1]. The company's moat is built on its fulfillment-led strategy that ensures unmatched speed, reliability, and consistency[2].

Coupang's competitive advantages come from its comprehensive delivery options (dawn, same-day, and next-day) combined with an easy returns process[1]. Its strong balance sheet, with cash exceeding debt by approximately $2.0 billion, provides financial flexibility to sustain its moat[5]. The company's ability to attract and retain customers is evident in its active customer base nearly doubling between 2019 and 2024 to 22.8 million, with newer customer cohorts demonstrating higher initial spending levels and faster spending growth over time[5].

Leadership

Bom Kim (Kim Beomseok) is the Founder, CEO, and Chairman of Coupang, South Korea's largest e-commerce company[1][2]. Born in Seoul in 1978, he founded Coupang in 2010 after dropping out of Harvard Business School[3][4][5]. Under his leadership, Coupang has grown into a Fortune 200 technology company listed on NYSE, offering retail, restaurant delivery, video streaming, and fintech services[2]. Kim's innovative approach revolutionized South Korean e-commerce with services like Rocket Delivery and Rocket Fresh[4]. The company received a $2 billion investment from SoftBank in 2018, valuing it at $9 billion, with BlackRock and Fidelity among other major investors[4].

Financial Health

Coupang, Inc. (CPNG) exhibits strong financial health, with $6.1 billion in cash and short-term investments versus $1.6 billion in debt, giving it a robust cash-to-debt ratio[2]. The company’s debt is well covered by operating cash flow (130.2%), and both short- and long-term liabilities are easily covered by assets[2]. Coupang generates positive free cash flow, but the specific free cash flow margin is not detailed in the search results. The company has not been dilutive in recent years, having improved shareholder equity from negative to positive[2].

Last updated Jun 4, 2025