Coupang changes leadership roles to expand global business

Coupang Corp. has executed changes in leadership roles to focus more on overseas ventures. The company has entered Japan and Singapore this year. Sources also report that the e-commerce company is making plans to enter Malaysia and Taiwan.

According to Coupang on June 17, the company’s founder and CEO Kim Bom-seok will be resigning from all positions in Korea including his role as the board chairman.  

The company added that Kim will instead concentrate on his other roles as the CEO and board chairman of the New York Stock Exchange-listed Coupang Inc., which owns a 100% stake in the South Korean operation.

The CEO of Coupang’s Korean business, Kang Han-seung, was newly appointed as the new board chairman in Korea following Kim’s resignation. Its vice presidents Jeon Joon-hee and Yoo In-jong have also been appointed as new board members in the country.

“After the US listing, there are a greater number of global decision-making agendas that require Kim’s presence,” said a Coupang insider.

Analysts say that Coupang’s sustained growth in Korea further assured Kim to dedicate more time and energy on markets outside the home country.

Coupang’s first-quarter revenue in 2021 in Korea recorded $4.27 billion, up 74% from the same period last year. The company’s annual growth in 2020 was 94%.

COUPANG HEADS TOWARDS ASIA

Coupang’s basic strategy is to win in densely populated cities of the countries where Amazon and Alibaba have little presence.

Analysts say Taiwan is the ideal destination to test its strategy, as the e-commerce market in the densely populated island nation is headed by a local player PChome Inc. and the Singapore-based Shopee Pte Ltd.

They also note that Taiwan has a great road infrastructure and that the average income level of its citizens is high.

Some highlight Malaysia as a natural destination for the company.

“Considering that Singapore is a small market, Coupang will likely aim to enter bigger cities in Malaysia and Indonesia, such as Jakarta,” said an e-commerce industry source.

Coupang has already set up Coupang Asia Holdings Pte Ltd. in Singapore and has been actively recruiting both leadership and working-level positions in various functions including logistics, marketing and IT.

“As far as I know, Coupang is currently making plans to enter Malaysia and Taiwan,” said an investment banking source. 

Coupang’s fast expansion in Asia was expected as early as 2015 when Softbank Group founder Masayoshi Son made an initial investment of $1 billion in the e-commerce unicorn. Son’s total investment in Coupang now amounts to $3 billion.


“Z Holdings Corporation, a Softbank affiliate, is in discussion with Coupang for its Japan operation,” said Son in March at a media interview right after Coupang Inc.’s NYSE listing.

Coupang recently set up a local entity in Japan and has been recruiting actively in the country. Sources also report that it has kicked off a pilot service in Tokyo starting this month.  

Some note that there is a possibility that Z Holdings, jointly held by Naver and Softbank through a 50:50 joint venture A Holdings, may bridge the partnership between Naver Corp. and Coupang in Japan.

In South Korea, Naver is the country’s largest e-commerce player followed by its main rival Coupang.

Moreover, Coupang on June 17 added that it will be investing 220 billion won ($194 million) to create a new distribution center in Busan to be built by 2024. The 170,000 square-meter center marks Coupang’s fourth large-scale investment in the country this year.

Write to Dong-hui Park at donghuip@hankyung.com
Daniel Cho edited this article.