From MoneyWeek · · 1m 20s
Coupang Shares Look Bargain
South Korea's Amazon could be undervalued as it turns profitable.
In brief
South Korea's Amazon could be undervalued as it turns profitable. Coupang's shares are undervalued after turning profitable in 2023 despite recent data breaches and regulatory fines. Originally reported by MoneyWeek.
Coupang's origins
Coupang was founded by South Korean-born entrepreneur Bom Kim in 2010 after he saw America's customer-focused retail culture.
South Korea's retail gap
South Korea's retail sector lagged due to chaebols, family-controlled conglomerates that protected themselves from foreign competition.
Coupang's early struggles
Coupang initially used a Groupon-style model but shifted to logistics in 2012, facing funding challenges from venture capitalists.
The 2015 SoftBank investment
SoftBank invested $1 billion in 2015, allowing Coupang to build fulfillment centers and refine its software before listing in 2021.
Profitability milestone
Coupang turned profitable in 2023 after years of heavy losses, demonstrating the viability of its automated logistics network.
Coupang's service expansions
Coupang launched WOW membership, Coupang Eats, and Fulfilment by Coupang, generating service revenue from third-party merchants.
Recent regulatory challenges
Coupang faced a 162.8 billion won fine in 2024 for manipulating search algorithms and a data breach affecting 33 million customers in 2025.
Current financial state
Coupang's shares have dropped 60% since 2023 highs despite turning profitable, trading at an enterprise value-to-sales ratio of 0.7.
The essence
Coupang's shares are undervalued after turning profitable in 2023 despite recent data breaches and regulatory fines.
