As Coupang grapples with internal turmoil over a data leak in Korea, tension is also rising in Taiwan, which U.S. parent Coupang Inc. has cultivated as its second market. With the head of the local subsidiary reportedly resigning abruptly less than a year into the job, speculation is growing that the headquarters may be reorganizing its overseas operations across the board.
On the 23rd, industry sources said that Sandeep Karwa, an Indian national who has overseen Coupang's Taiwan subsidiary, recently left the company. He is from Flipkart, an e-commerce company known as "India's Amazon." He was appointed head of the Taiwan subsidiary in Feb. this year, but stepped down in less than a year.
Local media in Taiwan reported that Coupang avoided giving a direct answer on the matter. The specific background of the resignation and plans for a successor were not disclosed, and there was speculation inside and outside the industry that Karwa may have lacked an understanding of the Taiwan market.
Coupang's Taiwan subsidiary said, "An operating committee made up of institutional sector heads supports overall strategic direction and decision-making, and there is no disruption to business operations," adding, "We will continue long-term, stable growth in the Taiwan market."
The resignation of the head of the Taiwan subsidiary is drawing attention as it coincides with the data leak that erupted in Korea. The large-scale personal information leak that escalated domestically at the end of last month led to concerns in Taiwan over Coupang's internal controls and data security. Coupang emphasized that there was no data leak damage in Taiwan, and the local government said it would continue monitoring.
Because Taiwan is a key market that Coupang Inc. is focusing on after Korea, the personnel change is seen as highly symbolic. As Coupang Inc. responds to deteriorating public opinion and regulatory risks in Korea, there is speculation it may overhaul organizational reviews and management systems across its overseas subsidiaries, including Taiwan.
In Taiwan, there is close attention to how the fallout from the leadership change at the Korea subsidiary and the National Assembly audit might affect the Taiwan business. Some analyses say the incident could shock brand trust and negatively affect earnings.
Some local media in Taiwan assessed that compared with June (the 6/18 shopping festival) and Nov. (Singles' Day), the Taiwan subsidiary's short-term hiring scale and transaction volume on Dec. 12 (Double 12), considered the biggest year-end shopping peak, were small.
Since entering Taiwan in 2022, Coupang Inc. has continued expanding its business, but there are no shortage of challenges to address. Locally, doubts persist over the stability of its logistics system and its marketplace (open market) fee policies. Among consumers, it also sparked controversy over "suspicions of supplying counterfeit goods."
In the third quarter this year, Coupang Inc. posted its highest-ever quarterly revenue on the back of its Taiwan business, but profitability was weak due to expense burdens. EBITDA losses in the growth institutional sector, including Taiwan, came to 404.7 billion won. Gaurav Anand, Coupang's chief financial officer (CFO), said this was "the result of increased investment in Taiwan."
The Taiwan business is overseen by Coupang Inc. board chair Bom Kim. Kim, who is staying abroad, is known to shuttle mainly between the United States and Taiwan for work. On the third-quarter earnings conference call this year, Kim said, "The Taiwan market is showing a similar pattern to when we were building our early business in Korea."