Son Jeong-ui, 10x Return on Coupang Investment... Highest Record Since Alibaba Investment

SoftBank Invested $3 Billion in Coupang
Estimated Equity Value at $30 Billion

▲Masayoshi Son, Chairman of SoftBank [Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The SoftBank Group Vision Fund, led by Chairman Son Jeong-ui, is expected to record a 'record-breaking' rate of return due to its investment in Coupang. Attention is focused on whether Chairman Son, who lost face due to consecutive investment failures last year, will restore his reputation through this opportunity.

On the 14th (local time), Bloomberg News reported, citing sources, that the value of SoftBank Vision Fund's stake resulting from Coupang's listing is expected to reach about $30 billion (approximately 33.5 trillion KRW). This is about 10 times the investment amount and represents the second-highest return since SoftBank's investment in Alibaba Group's listing in 2014.

Previously, SoftBank's Vision Fund invested about $3 billion (approximately 3.45 trillion KRW) in Coupang in two rounds in 2015 and 2018. The SoftBank Vision Fund is the largest shareholder, holding 33.1% of Coupang's shares.

At the time SoftBank invested in Coupang, Coupang's accumulated deficit was around 2 trillion KRW, leading to criticism that it was like "pouring water into a bottomless jar." Subsequently, consecutive setbacks such as the failure of investments in the U.S. office-sharing company WeWork and the UK financial investment firm Greensill Capital raised doubts about Chairman Son's investment judgment. However, it is expected that Chairman Son will be reevaluated following Coupang's listing.

Justin Tang, Head of Asia Research at United First Partners, a global investment advisory firm based in Singapore, said, "The market is very encouraged about what the Vision Fund can achieve through its investments."