Publication of Coupang ESG Management Analysis Paper... "Rocket Delivery Leads Win-Win with Small Businesses"

Professor Seoyonggu of Sookmyung Women's University Publishes Paper
Evaluated as a Meaningful Management Case in the Distribution Industry

[Asia Economy Reporter Kim Cheol-hyun] A paper has been published stating that Coupang's core service, 'Rocket Delivery,' contributes to the company's ESG (Environmental, Social, and Governance) management. It explains that the direct purchase method of Rocket Delivery reduces the market entry burden for small business owners and provides them with opportunities to compete on product strength on an equal footing with large companies.

According to Coupang on the 20th, Professor Seo Yong-gu of the Department of Business Administration at Sookmyung Women's University published a paper titled "Coupang's ESG Management: Focusing on Rocket Delivery" in the recent issue of "Journal of Commodity Science," one of the leading academic journals in the distribution industry in Korea. Professor Seo's paper analyzed the positive impact of Coupang's Rocket Delivery on our society from the ESG perspective, which has recently gained attention as an indicator for evaluating companies and investment decisions.

The paper emphasized that Rocket Delivery contributes to environmental protection. Rocket Delivery was able to shorten the average delivery distance by reducing distribution stages compared to existing e-commerce. Efforts to reduce packaging waste, which increased due to the prolonged COVID-19 pandemic, were also effective. For example, Coupang directly developed and introduced the reusable cooling bag called 'Fresh Bag,' which replaces an average of 300,000 Styrofoam boxes per day. This is equivalent to planting 9 million trees annually, creating a forest area 6.5 times the size of Yeouido. Professor Seo explained that Rocket Delivery also contributed to fulfilling social responsibility as Coupang is Korea's largest e-commerce company with over 66,000 employees and about 18 million active customers.

Professor Seo particularly focused on how Rocket Delivery helps small business owners expand their sales channels and increase sales. Small business owners entering online sales for the first time can reduce market entry burdens by using Coupang Rocket Delivery or Jet Delivery, as Coupang supports everything from purchasing, inventory management, returns, to customer management. Last year, Coupang also established a support fund worth 400 billion KRW to help small business owners and agricultural, fishery, and livestock producers nationwide develop online sales channels.

ESG management not only enhances Coupang's brand value but also increases customer loyalty. In the fourth quarter of last year, the number of active customers who purchased at least once from Coupang was 17.94 million, a 20% increase compared to the same period the previous year. Sales per active customer were 283 dollars, an 11% increase during the same period. Professor Seo said, "Distribution platform companies like Coupang that create social value are rare in Korea," adding, "This will be a meaningful case that can serve as a model for the entire distribution industry."