Coupang Posts 600 Billion Won Operating Loss in Q3, Wiping Out 3 Years of Profits

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Coupang Inc., the parent company of Coupang, recorded an operating loss of over 600 billion won in the third quarter of this year. After first turning a profit in 2023, three years' worth of operating profits have been entirely wiped out following the personal data leak incident.

Reporter Kim Gi-tae has the story.

[Reporter]

Coupang Inc., the parent company listed on the New York Stock Exchange, announced in a regulatory filing that it recorded an operating loss of $450 million, or approximately 642.3 billion won, for the third quarter of this year.

This marks three consecutive quarters of operating losses starting from the first quarter of this year, following last year's personal data leak incident.

The cumulative operating deficit stands at around 1.8318 trillion won, approaching the total sum of operating profits accumulated over the three-year period from 2023 to 2025, when the company posted annual surpluses.

Coupang endured losses for over a decade to build its Rocket Delivery infrastructure before finally beginning to turn a profit in 2023, meaning that all profits earned during that time have effectively evaporated.

During the conference call held after the third-quarter earnings announcement, Coupang Inc. Chairman Bom Kim explained that the sluggish performance was a "temporary headwind" caused by supply chain disruptions and increased marketing expenses to win back departing customers.

He also projected that next year's product commerce margins would approach levels seen before the personal data leak incident, citing the rapid recovery of the South Korean market as the reason.

[Bom Kim / Chairman, Coupang Inc.: South Korea's Wow membership is at an all-time high. It has grown strongly both year-over-year and quarter-over-quarter.]

However, with additional penalty sanctions anticipated from the Fair Trade Commission over practices such as bundling delivery apps, Coupang is widely expected to remain in the red in the fourth quarter of this year.

(Video Editing: Lim Yeojin)
※ Please note: This article was translated by AI and may contain errors.