Coupang Posts 12.46 Trillion Won in Q1 Revenue but Swings to Operating Loss

Coupang posted 12 trillion won in first-quarter revenue but swung to an operating loss of about 350 billion won, weighed down by costs tied to a personal data breach and inefficiencies in its logistics network. Coupang Inc. Chairman Kim Beom-seok said Wow, the company’s paid membership service, is rebounding after last year’s breach but will take time to fully normalize.

Coupang Inc. said on the 6th (Korea time) that first-quarter revenue rose 8% from a year earlier to 12.4597 trillion won, from 11.4876 trillion won. It reported an operating loss of 354.5 billion won, its largest in 4 years and 3 months. Net loss totaled 389.7 billion won.

On a conference call, Kim said product commerce revenue growth hit its low point in January, then improved each month year over year, with the pace of improvement accelerating in February and March. He said most existing customers and Wow members did not leave after the breach and continued to increase spending. As of the end of last month, he said, rejoining by former members and growth in new sign-ups restored about 80% of the Wow membership decline after the incident.

A key driver of the loss was the purchase credits issued to customers affected by the data breach. In January, Coupang provided 50,000 won in purchase credits to each of 33.7 million affected customers, for a total cost of 1.685 trillion won. Kim said the credits were a one-time item, with most of the impact limited to the first quarter, though some effects were expected to continue into early in the second quarter.

Kim also cited logistics-network inefficiencies. Coupang has expanded facilities and adjusted supply-chain planning to match predictable demand patterns, but the external shock from the breach left actual demand below planned levels, creating idle capacity and inventory costs, he said.

Kim said efforts continue beyond recovery to strengthen the business. He said the company is introducing automation and artificial intelligence across logistics and delivery networks to raise service levels while cutting costs, which he said should help improve customer experience and expand margins over time.

Among overseas operations, Kim pointed to Taiwan as a key growth engine. He said Coupang’s in-house last-mile network that guarantees next-day delivery now covers most volume in Taiwan and continues to expand. He said providing the full Rocket Delivery service lineup in Taiwan remains at an early stage, but customer response has been strong, and the company will focus this year on building a top-tier customer experience and a foundation for long-term growth there.

The conference call also addressed the issue of Korea’s designation of Coupang’s “same person,” a label used to identify a controlling owner. CFO Gaurav Anand said the company is aware of the designation in Korea and is reviewing it closely, adding that Coupang is committed to complying with regulatory requirements in every market where it operates.

The Korea Fair Trade Commission recently changed Coupang’s designated controlling owner from the corporation to Kim personally. The change increases scrutiny of governance-related rules and subjects the company to regulations on unfair private benefits. Coupang has said Kim meets conditions for an exception and plans to contest the designation through an objection and an administrative lawsuit.