Securing Funds for AI and Semiconductor Investments
Institutional Investors Expected to Gain Greater Influence
It has been confirmed that SoftBank has sold approximately 2.3 trillion won worth of Coupang shares in three separate transactions this year. Analysts say this is a strategic decision aimed at securing funds for new business investments such as artificial intelligence (AI) and semiconductors, as well as responding to changes in the domestic regulatory environment.
According to a filing with the U.S. Securities and Exchange Commission (SEC) on the 25th, SoftBank sold 20 million Coupang shares on the New York Stock Exchange on the 20th (local time) for about $570 million (800 billion won). Previously, in May and June, SoftBank had also sold 30 million shares (about 1.1 trillion won) and 10 million shares (about 400 billion won), respectively. In total, the company has sold 60 million shares this year, amounting to $1.65 billion (2.3 trillion won).
As a result of these sales, SoftBank's stake in Coupang has dropped from over 32% at the end of 2021 to around 17% currently. The stake, which stood at 37% immediately after Coupang's 2021 IPO, has been reduced to less than half in just four years.
Analysts believe SoftBank's divestment is linked to a shift in its global investment portfolio. Chairman Masayoshi Son is currently working with OpenAI and Oracle on the $500 billion Stargate AI infrastructure project in the United States, and is also accelerating additional investments in OpenAI and global semiconductor companies. Industry experts view the sale of Coupang shares as a move to secure funding for these large-scale investments.
The domestic policy environment is also a factor. With the recent passage of the Yellow Envelope Act in the National Assembly, which strengthens the responsibility of primary contractors, Coupang, which employs a large logistics and delivery workforce, now faces increased labor risks. In addition, if discussions on enacting the Online Platform Act become more active, it could place further pressure on Coupang's business practices and overall profit structure. The fact that Coupang's share price has risen by more than 30% this year, creating favorable conditions for realizing profits, is also cited as a reason for the sale.
There has been no change in management control. Chairman Kim Beomseok continues to maintain stable control by exercising more than 70% of voting rights through dual-class shares, despite holding a minority equity stake. However, with SoftBank's stake decreasing, the influence of institutional investors is expected to grow. Some global asset management and investment firms have recently increased their holdings in Coupang, further strengthening their influence.
Coupang has also announced plans to repurchase 1.4 trillion won worth of its own shares, aiming to enhance shareholder value. Industry insiders predict, "SoftBank may proceed with additional sales," and added, "As pressure from institutional investors increases, Coupang will need to find a balance between growth, profitability, and shareholder-friendly policies."
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