Coupang Inc. plans to accelerate investment in Taiwan’s overnight delivery network after the island territory became the South Korean e-commerce giant’s fastest-growing market, despite widening losses from international expansion efforts.
Taiwan operations generated 1.67 trillion won ($1.2 billion) in second-quarter revenue, marking 33% year-over-year growth, the company said Wednesday following its earnings announcement. The Taiwan business grew 54% quarter-over-quarter, significantly outpacing Coupang’s 10% customer growth in its home market.
The Seoul-based company, often dubbed “South Korea’s Amazon,” didn’t specify the size of its additional Taiwan investment or provide expansion details. However, Chief Financial Officer Gaurav Anand indicated that increased Taiwan spending will widen the company’s adjusted EBITDA losses to between $900 million and $950 million this year, up from a previous estimate of $750 million.
Taiwan’s e-commerce market, valued at approximately $19.6 billion in 2023, is expected to reach $26.8 billion by 2028. Yet Coupang faces entrenched local competitors including Shopee, PChome, and Momo, which maintain loyal customer bases and established logistics networks.
The company launched its WOW membership program in Taiwan during the first quarter, offering unlimited free delivery for about $2 monthly. Coupang has partnered with hundreds of global brands including Coca-Cola and Procter & Gamble, expanding product selection by nearly 500% year-over-year.
The expansion comes as South Korean small and medium-sized enterprises boost exports to Taiwan by 23.3% in the first half amid new US tariffs, with cosmetics and electronics shipments rising 42.8% and 32.3% respectively.
