Coupang's mounting losses threaten growth model amid regulatory pressure

Coupang Inc., the U.S.-based platform operator for South Korea's leading e-commerce market, reported a staggering 1.83 trillion won ($1.28 billion) in operating losses during the first nine months of the year. The financial strain is exacerbated by a recent data breach and mounting regulatory pressure, which are impacting the company's profitability.

According to the latest financial results released on Wednesday, Coupang experienced an operating loss of 642.3 billion won in the third quarter, marking a continued decline from the previous two quarters. The third-quarter loss included 354 billion won in expenses stemming from a July fire at its Incheon fulfillment center. Furthermore, the company continues to absorb costs related to customer compensation following the data breach that occurred last year.

A significant 624.7 billion won fine imposed by the Fair Trade Commission (FTC) further dampened earnings in the second quarter. The cumulative losses have nearly erased the 1.9 trillion won in operating profits Coupang managed to generate between 2023 and 2025. Despite these challenges, revenue for the third quarter reached a record high of 14.22 trillion won, while the number of active customers increased by 2 percent year-on-year to 25.2 million.

Notably, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were disclosed but not explicitly quantified in the provided source material.