Coupang Inc., the U.S. parent of Coupang, will announce last year's results at dawn on the 27th Korea time. As this is the first report card since the massive personal information leak, attention is focused inside and outside the market. There is keen interest in whether growth can continue amid domestic and overseas regulatory risks, as well as in the outlook for future results and any changes to business strategy.
According to the related industry on the 23rd, Coupang Inc. will announce fourth-quarter and full-year results for last year after the market closes on the 26th (local time) and hold a conference call. The securities industry believes that while sales growth likely continued in the fourth quarter, profitability may have somewhat weakened due to expanded logistics investment and expense burdens.
Coupang Inc. maintained solid results through the third quarter of last year. Coupang's operating profit in the third quarter last year was 224.5 billion won (based on the then won-dollar exchange rate of 1,386.16 won), similar to the first quarter (233.7 billion won). It was slightly higher than the second quarter (209.3 billion won). Revenue rose 20% year over year to 12.8455 trillion won. As a result, there is an outlook that topline growth likely held on an annual basis.
However, after the massive personal information leak at the end of November last year, Coupang has faced regulatory risk as investigations and sanctions procedures by domestic and overseas authorities proceeded. In Korea, depending on the findings of the Ministry of Science and ICT's public-private joint investigation team and the Personal Information Protection Commission, measures such as a penalty surcharge and fines are expected.
The United States, where Coupang Inc. is headquartered, is also closely watching the situation. The House Judiciary Committee on the 5th (local time; same hereafter) requested Harold Rogers, the acting head of Coupang's Korea unit, to appear and testify at a hearing on the 23rd. The purpose is to review the overall matter, including the appropriateness of the Korean government's investigations and regulatory actions.
Given the timing of the personal information leak, the direct impact on fourth-quarter and full-year results last year is expected to be limited. However, depending on the level of sanctions, such as a penalty surcharge and user compensation expense, profitability and corporate value are likely to come under pressure. In the retail industry, attention is on whether Coupang Inc. Chair Bom Kim will personally lead the conference call as before the massive personal information leak and, if so, what message will be delivered.
Among investors, Coupang's corporate value is being reassessed. Global investment banks (IB) such as Nomura, Citi and Bernstein presented conservative outlooks reflecting regulatory risks and the potential for rising expenses. In contrast, Deutsche Bank and JPMorgan say Coupang's mid- to long-term growth remains intact, given its market position and growth potential.
In a matter of months, Coupang's share price has grown more volatile. As of the 19th, the closing price rose $0.40 (2.22%) from the previous day to $18.45. Compared with the Nov. 28 closing price ($28.16), the day before the personal information leak on Nov. 29, it is down 35.5%. After falling to around $22 in mid-December last year, the stock seemed to pare losses by year-end but then turned downward again. Since the 3rd of this month, it has been below the $20 level.
Coupang's payment volume indicators have not yet shown a clear sign of slowing growth. According to the "2025 estimated payment amount report" released by Wiseapp Retail on the 27th of last month, Coupang's estimated annual payment amount last year was 66.2109 trillion won. That is a 13% increase from 2024 (58.7137 trillion won).
However, analysis suggests the growth pace may have slowed somewhat starting in December after the personal information leak. In fact, looking at the monthly daily average payment amount, it fell from 148.6 billion won in November last year to 140 billion won in December and 139.2 billion won last month. Monthly active users (MAU) also decreased to 33.18 million last month, down 1.1 million (3.2%) from 34.28 million in December last year.