Coupang Records 800 Billion Won Loss in Q2... "Will Appeal 300 Billion Won Tax Assessment"

[Anchor]

Coupang, which suffered a personal data leak incident, posted its largest-ever operating loss in the second quarter. While sales reached an all-time high, the impact of heavy fines imposed on the company was significant.

Reporter Chae Heesun has the details.

[Reporter]

Coupang Inc., the parent company of Coupang, recorded its largest operating loss since its listing on the U.S. stock market in 2021.

The second-quarter loss stood at 835 billion won, which is about 20% higher than Wall Street expectations.

Coupang's total operating loss for the first half of this year reached approximately 1.18 trillion won, wiping out most of its operating profits from the past two years.

The massive loss was largely driven by the reflection of 624.6 billion won in fines imposed following the personal data leak controversy last June.

[Gaurav Anand / Chief Financial Officer (CFO), Coupang Inc.: This includes a 410 million dollar fine imposed by South Korean regulatory authorities. The penalty remains subject to judicial review, and we plan to appeal through the court.]

Excluding the fine, the scope of the loss decreased compared to the first quarter, and quarterly sales hit a record high of 13.3 trillion won, prompting Coupang to express optimism about a earnings recovery.

[Bom Kim / Founder and Chairman, Coupang Inc.: The total number of membership subscribers has already surpassed pre-incident levels. Most spending has recovered, and we are growing in the same way as before.]

However, the third quarter is expected to reflect 350 billion won in losses resulting from the fire at the Incheon logistics center last month, and the company recently received a notice of preliminary tax assessment worth 300 billion won from the National Tax Service, making a recovery in profitability difficult for the second half of the year.

Coupang disclosed that it cannot accept the National Tax Service decision and will proceed with objection procedures.

[Kim Hyun-dong / Professor of Business Administration, Pai Chai University: Coupang is currently in a very difficult situation. Naturally, there is bound to be a strong motive to disclose favorable information to reassure shareholders.]

With forecasts pointing to the company's largest annual loss ever due to fines and taxes, expectations are rising that the Coupang issue could potentially develop into a source of friction between South Korea and the United States.

(Photo: Yonhap News) (Reported by Lee Jae-young, Video Edited by Kim Jin-won, Design by Choi Ha-neul)

※