The Original NYSE Listing: Naver's 'Line'... How Does It Differ from Coupang?

[Asia Economy Reporter Buaeri] On the 14th, Naver celebrated the 5th anniversary of listing its subsidiary (now an affiliate) Line on the New York Stock Exchange. The next day, it was also listed on the Tokyo Stock Exchange. Line was the first domestic platform company to be simultaneously listed on two major global stock exchanges.

Five years later, in March of this year, Coupang was also listed on the New York Stock Exchange. On the day of its listing, Coupang's market capitalization surpassed 100 trillion won, surprising the domestic IT industry.

1st Generation 'Line' 2nd Generation 'Coupang'

Both companies share the commonality of being listed on the New York Stock Exchange, but their processes showed slightly different approaches. Line succeeded in global markets such as Japan and Southeast Asia before entering the Japanese and U.S. stock markets, whereas Coupang challenged the New York Stock Exchange based on its domestic business.

Line is the result of Naver's more than 10 years of repeated challenges and failures since 2000. In 2014, it achieved 170 million monthly active users. Line expanded its business globally with messenger, pay, and content services, and was listed on the New York and Tokyo stock exchanges in 2016.

Starting as a social commerce platform, Coupang built a fulfillment (integrated logistics management) system domestically and introduced fast delivery (Rocket Delivery), rising as a strong player in the domestic e-commerce market. Unlike Line, which succeeded overseas before listing, Coupang was listed on the New York Stock Exchange based on rapid domestic growth.

However, Line was delisted following a management integration with Yahoo Japan. It is currently listed on the Tokyo Stock Exchange under Z Holdings.

Global Leap as a Launchpad for Listing

Both Naver and Coupang are preparing to leap into global companies based on the funds raised through listing and the brand value of the listed companies.

Through the listing of its subsidiary Line, Naver invested the raised funds into technology and has been preparing to expand beyond Asia into Europe and the United States. With the completion of the management integration between Line and Yahoo Japan last March, Naver and SoftBank are transforming into global IT companies capable of competing with American firms. New businesses such as Naver Webtoon and Zepeto are also expanding their influence in broader regions including North America and Europe. There are expectations that Naver Webtoon will be listed in the U.S. following Line.

Coupang has also been attempting global expansion since its listing. It has started pilot services such as fresh food and daily necessities delivery in Japan and Taiwan.

There is also a view that Line's success in 2011 led domestic startups to take on new challenges. Kim Beom-seok, Chairman of Coupang, expressed his determination in August 2011, on the first anniversary of the company's founding, saying, "We will be listed on NASDAQ within two years and leap into the world." Domestic startup Hyperconnect also succeeded in the Middle East after launching the video chat app 'Azar' and was sold to Match Group, which operates 'Tinder,' for about 2 trillion won.

Regarding this, Professor Kang Hyung-gu of Hanyang University's Department of Business Administration said, "Naver's Line was simultaneously listed on the major global stock exchanges of Tokyo and New York based on its achievements in the global market. This is a meaningful case showing that our country's platforms can succeed in the global market and an important event that removed psychological hurdles for domestic entrepreneurs."