Naver’s Aggressive Push vs. Coupang’s Hold: Platform Giants Clash for Dominance

Coupang and Naver Battle for AI Shopping Supremacy
Naver Expands N Delivery... Closing in on Coupang
Coupang Challenges Naver’s Reign as Top Simple Payments Provider

Coupang and Naver are locked in a battle for dominance in the “Artificial Intelligence (AI) shopping” space. Coupang, the largest e-commerce platform in South Korea, is leveraging consumer data from its 35 million users, secured through its Rocket Delivery service, to pioneer new markets such as finance. Meanwhile, Naver, with its AI shopping strategy, is capitalizing on its powerful search platform to encroach on the e-commerce market currently dominated by Coupang. As the two leading giants in the platform industry, both companies are competing across all industries, from the domestic e-commerce market to building financial ecosystems involving payment solutions and more.

According to Mobile Index, the data analytics solution from IGAWorks, as of last month, Coupang had the highest number of monthly active users (MAU) among Korean shopping applications, reaching 35,091,710. Naver Plus Store followed with 9,080,451, then 11st (Eight One), with 8,081,531, Aliexpress with 8,012,329, Temu with 7,520,745, Gmarket with 6,120,163, and SSG.com with 2,905,842.

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Naver’s Bold Advance: Chasing Coupang Close with N-Delivery

While Coupang boasts overwhelmingly larger numbers, Naver’s growth trajectory is much steeper. The MAU for Naver Plus Store increased by 161%, rising from 3,479,500 in June last year to 9,080,451 in June this year. Over the same period, Coupang grew modestly from 33,629,857 to 35,091,710, a 4.3% increase. Aliexpress’s MAU climbed 15% from 6,969,731 to 8,012,329, and Temu’s count rose by 7.1% from 7,021,892 to 7,520,745.

Naver has especially excelled at attracting new users. Naver Plus Store surpassed Coupang in new monthly installs for the first time in September last year, regained the top position in December, and has maintained a lead for seven consecutive months through to June this year. In the first half of this year, Naver Plus Store recorded 4,383,469 cumulative new installs, the highest among shopping apps. Temu followed with 4,358,942, while Coupang managed only 2,502,023. In June this year, new installs for Naver Plus Store stood at 749,581—almost double Coupang’s 383,182.

Although Coupang still leads in transaction volume, Naver—already a major force in the payments market—is closing the gap. According to WiseApp and Retail, Coupang ranked top among retail brands for the average monthly payment estimates by Korean consumers using credit or debit cards during the first half of this year. Taking Coupang’s estimated transaction volume as 100, Naver and Naver Pay scored 96.5, followed by Baedal Minjok at 32.8, Gmarket and Auction at 21.8, GS25 at 21.8, Lotte Department Store at 21.4, Shinsegae Department Store at 21.0, CU at 20.9, Coupang Eats at 19.1, Nonghyup Hanaro Mart at 18.7, Emart at 18.6, and Hyundai Department Store at 15.0. Industry insiders estimate Coupang processed approximately 55 trillion won and Naver about 50 trillion won in transaction value last year.

Naver has expanded its shopping ecosystem around its search engine, Naver Pay, and Smart Store. In March last year, Naver launched its standalone shopping app, Naver Plus Store, to challenge Coupang, and in February this year, it introduced a beta version of its AI shopping agent. This feature analyzes users’ search and purchase histories, along with their interests, to recommend personalized products.

Competition in delivery services is also fierce. While Coupang operates its own logistics centers and delivery network, Naver is partnering with logistics companies such as CJ Logistics to expand its “N-Delivery” service. Coverage now includes same-day, next-day, and even Sunday delivery, alongside an expanded product lineup as large discount stores and specialist retailers join the platform. Coupang offers free delivery and shipping bundled with online video streaming through its WOW Membership, while Naver counters with Naver Plus Membership, which offers reward points, free shipping and returns, as well as expanded content services.

Naver’s pursuit has been clearly reflected in its financial results. Naver’s service sales rose from 328 billion won in the first quarter of last year to 445 billion won in the first quarter of this year, marking a 35.7% increase. The company attributed this growth to increased transaction volume from Smart Store and the resulting rise in related revenue.

The Counterattack of RocketPay... Set for a Showdown with Naver

Coupang is entering the simple payment market to challenge Naver’s dominance. The company plans to launch “RocketPay” in the second half of this year, expanding Coupang Pay—which had been limited to Coupang, Coupang Play, and Coupang Eats—to nationwide online and offline partner merchants. RocketPay will link bank accounts, credit/debit cards, and prepaid funds, allowing users access at online and offline merchants outside of Coupang's own platforms.

Additionally, Coupang is building a payment ecosystem using blockchain technology. Coupang has completed verification with Woori Bank for a real-time settlement technology based on a won stablecoin and is expediting the adoption of a settlement system using stablecoins. Woori Bank supports the entire process from payment to real-time settlement and on-off ramp services with its won-based stablecoin, linking its digital wallet and bank accounts to allow seamless conversion between stablecoins and fiat currency via the on-off-ramp process. As Naver remains the top player in the mobile easy payment market, Coupang is targeting the payments market with these innovative new technologies.

This content was produced with the assistance of AI translation services.