Coupang Nears 360 Billion KRW Investment in Taiwan
Expands AI-Based Integrated Logistics Center
Taiwan's Ministry of Economic Affairs has approved an investment of approximately 255 billion KRW by South Korean e-commerce company Coupang, local media including Liberty Times reported on the 25th. Coupang, which launched its Rocket Delivery service in Taiwan in 2022, is expected to pursue aggressive business expansion.
According to the reports, the Investment Review Committee of Taiwan's Ministry of Economic Affairs approved an investment of about 6.05515 billion TWD (approximately 255.2 billion KRW) applied for by Coupang Inc. of the United States at its 7th meeting held the day before.
Previously, about four months ago on December 27 last year, the same Investment Review Committee had also approved Coupang's investment of 2.475 billion TWD (approximately 104.3 billion KRW). With this, Coupang's total investment amount in Taiwan has exceeded 8.53015 billion TWD (approximately 359.6 billion KRW).
Local media explained, "This investment by Coupang, often referred to as the 'Amazon of Korea,' is for e-commerce services through an online platform and the operation of its own logistics centers," adding that "Coupang is actively targeting the Taiwanese market."
They also emphasized that Coupang's investment amount in Taiwan far surpasses the capital of Taiwan's leading TV home shopping company, ‘Momo Home Shopping’ (about 2.2 billion TWD), as well as the capital of the well-known internet shopping mall ‘PC Home’ (about 1.44 billion TWD).
Earlier, since launching Rocket Direct Purchase and Rocket Delivery services in Taiwan in October 2022, Coupang has steadily expanded its business. In November last year, it opened an integrated logistics center (2nd fulfillment center) in the Taoyuan area of northern Taiwan equipped with AI and machine learning-based automation technologies. Coupang plans to operate its 3rd fulfillment center in Taiwan in the first half of this year and intensify its efforts to capture the local market.
This market development by Coupang in Taiwan is also good news for Korean small and medium-sized enterprises (SMEs). As integrated logistics infrastructure like Coupang's fulfillment centers continues to be established, exports by SMEs to Taiwan can also gain momentum. Currently, more than 12,000 SMEs have entered the Taiwanese market through Coupang, and it is reported that 70% of the millions of products sold in Taiwan are domestic SME products.
Meanwhile, on the 24th (local time), Coupang's stock price closed at $22.80, up 0.35% from the previous session on the New York Stock Exchange. It has risen 40% since the beginning of this year.
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