“We will invest more than 3 trillion won ($2.23 billion) in the South Korean market over the next three years,” said a senior official from Coupang, South Korea’s largest e-commerce marketplace on Mar. 27.
Coupang revealed its plan to invest large sums of money in the domestic market for the upcoming three years. This comes just two weeks after AliExpress, China’s largest e-commerce giant owned by Alibaba Group announced a trillion-won investment plan to expand its market share in South Korea. Coupang’s doubling of investment seems to respond to this aggressive expansion plan. Despite the large operating loss, the South Korean e-commerce leader has been investing heavily to grow its share in the South Korean e-commerce market. Coupang said it will spend more than 3 trillion won from this year to 2026 to expand “Rocket Delivery,” a one-day delivery service across the country. The company aims to expand the overnight shipping service, which is currently available to 40 million people, 80% of the South Korean population, to 50 million, nearly 100% of the population, by 2027.
Coupang’s investments announced on Mar. 27 are more than double the Alibaba Group’s, which is 1.45 trillion won. Coupang has pumped 6.2 trillion won ($4.59 billion) into the market over the past decade, and the company’s recently announced commitment of 3 trillion won is more than this on a yearly basis.
Coupang plans to spend most of the amount on expanding its domestic logistics network. The e-commerce tycoon aims to achieve nationwide coverage of its distinctive Rocket Delivery service by 2027, making the entire country, including islands and mountainous areas, a so-called “Cou-se-gwon” (where Rocket Delivery is available). To this end, the company will build at least eight more logistics centers. Coupang anticipates increasing the number of its overnight delivery service-available areas from the current 182 (70%) to more than 230 throughout the cities and counties nationwide, with the percentage reaching 100% by 2027. The South Korea-based retailer currently has more than 100 logistics centers in 30 regions across the country.
