Coupang increases investment to boost Taiwan’s development

Coupang’s second logistics center in Taoyuan City, Taiwan. (Kupang)

South Korean e-commerce giant Coupang has opened its first overseas distribution unit in Taiwan, an apparent move to expand its presence in the burgeoning retail market there, according to industry sources on Monday.

The new subsidiary, called Haitong Shangmao, specializes in distributing locally produced daily necessities from Coupang logistics centers to customers.

A Coupang official also confirmed the formation of the company, which he said is part of the company’s expansion plans for its signature overnight transportation service, Rocket Delivery.

After entering Taiwan in 2021, Coupang launched a shipment of missiles there in October 2022. Since its launch in the second quarter of 2023, both sales and membership have more than doubled. Last year, the company also opened its second fulfillment center in the city of Taoyuan, northeast of Taiwan.

“Since it is believed that the operations in Taiwan have not yet stabilized on a Korean scale, they are first trying to strengthen the Rocket Delivery service through the operation of a separate corporation,” said an industry expert on condition of anonymity. “In Korea, Coupang’s logistics, delivery and order fulfillment are managed by the parent company’s subsidiaries.”

During last year’s conference call, Coupang CEO Kim Bom highlighted the growth potential of the Taiwanese business, saying: “Taiwan is another investment that far exceeds our expectations.”

“So far, Taiwan has significantly exceeded this benchmark. Given this progress, we will invest more in Taiwan,” Kim added.

As of 2023, Coupang’s total investment in Taiwan has reached NT$8.53 billion ($265 million). The company also plans to build a third logistics center this year.

Author: Hwang Joo-young ([email protected])