Coupang Inc. Posts 1.2 Trillion Won First-Half Loss, Largest Operating Deficit Since Founding (Comprehensive 2)

First-Half Operating Loss Reaches 1.1895 Trillion Won, Wiping Out Two Years’ Profits
Compensation for Data Breach and 620 Billion Won Penalty Reflected
Bom Kim: “Most Lost Customers Have Returned”
National Tax Service Prepares 300 Billion Won Tax Assessment, Fire Losses to Be Reflected in Q3

Coupang Inc., the parent company of Coupang, posted an operating loss nearing 1.2 trillion won in the first half of this year. This marks the largest first-half operating loss since Coupang was founded in 2010. Most of the operating profits earned over the past two years were reversed, as both compensation costs for customers following last year’s personal information leak and an additional penalty of about 620 billion won were reflected in the financial results.

According to Coupang Inc.'s consolidated earnings report filed with the U.S. Securities and Exchange Commission (SEC) on August 5 (Korea Standard Time), the company reported an operating loss of USD 798 million (approximately 1.1895 trillion won) and a net loss of USD 836 million (approximately 1.2457 trillion won) for the first half of this year. This is the first time that Coupang Inc.'s first-half operating loss has exceeded 1 trillion won.

The first-half operating loss nearly wiped out Coupang Inc.’s cumulative 1.2813 trillion won operating profit from 2024–2025. The first-half net loss is also more than three times the cumulative net income of 397 billion won over the same period. In just half a year, the profits earned over the past two years have been offset. Previously, the largest first-half operating and net losses were USD 782.24 million (about 875 billion won) and USD 797.03 million (about 910 billion won) in the first half of 2021, respectively. Including the period before its stock listing, the annual operating loss hit a record in 2018, totaling 1.097 trillion won.

More than 30 million personal data records were leaked in a massive breach at Coupang. This exceeds the economically active population of 29.69 million, marking the worst data leak in history. Photo by Dongjoo Yoon, taken on December 1, 2025, at Coupang headquarters.

Penalty Drives Q2 Deeper into the Red

The larger loss for the first half was mainly driven by the second quarter. Q2 revenue was USD 8.856 billion (13.3007 trillion won, based on Q2 average exchange rate of 1,501.89 won per dollar), up 4% from USD 8.524 billion (11.9763 trillion won) a year ago. Excluding currency impacts and using a constant currency basis, revenue grew 10%. In contrast, the company turned to an operating loss of USD 556 million (835 billion won) in the second quarter, compared to an operating profit of USD 149 million (209.3 billion won) in the same period last year. This was the second consecutive quarter of losses, following a Q1 operating loss of USD 242 million (354.5 billion won, KRW 1,465.16 per dollar). Net losses for Q2 came to USD 570 million (856 billion won), compared to net profit of USD 31 million (4.35 billion won) a year ago. Again, this represented a consecutive quarterly loss, following a net loss of USD 266 million (389.7 billion won) in Q1.

This quarter’s operating and net losses are the largest Coupang Inc. has ever reported on a quarterly basis since its 2021 listing on the New York Stock Exchange (NYSE). Previously, the largest quarterly operating loss and net loss were USD 514.93 million (about 577.3 billion won) and USD 518.6 million (about 581.4 billion won), respectively, in Q2 2021. The Q2 2026 operating loss exceeds last year’s full-year operating profit (679 billion won), and the net loss is nearly three times last year’s full-year net profit (303 billion won).

The negative results were primarily due to the aftermath of the personal information leak. Following last year's incident, Coupang Inc. provided approximately USD 1.2 billion (about 1.685 trillion won) worth of purchase credits to affected customers, which was reflected in Q1 results. Additionally, in June, Korea’s Personal Information Protection Commission imposed an administrative fine of 624.681 billion won in relation to the data leak and unauthorized collection of online activity information, which hit selling and general administrative expenses (OG&A) in Q2, further driving up losses.

Coupang Inc. stated that about USD 410 million of the penalty was reflected as SG&A in Q2. Excluding this extraordinary item, the Q2 operating loss would have been USD 146 million (219.2 billion won), and the net loss would have been about USD 160 million (240.3 billion won).

Q2 selling and administrative expenses rose 26% year-on-year to USD 3.05 billion, and total operating costs reached USD 9.412 billion, exceeding revenues. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was USD 163 million, down 62% from USD 428 million for the same period last year.

Active Customer Base Returns to Pre-incident Levels

Sales from Coupang’s core Product Commerce business (Rocket Delivery, Rocket Fresh, Rocket Grows, Marketplace) totaled USD 7.425 billion (11.1515 trillion won), a 1% increase in dollar terms from a year ago. On a constant currency basis, revenue was up 8%. Adjusted EBITDA for Product Commerce was USD 382 million (573.7 billion won), down 42% year-on-year.

However, primary business customer metrics showed a rebound. Active product commerce customers totaled 24.7 million, a 3% year-on-year increase from 23.9 million the previous year. This figure matches the level in Q3 2025, just before the personal information incident. The active customer count had dropped to 24.6 million in Q4 2025 and 23.9 million in Q1 2026, but rebounded by 800,000 in Q2, offsetting losses sustained after the incident. Revenue per customer stood at USD 301 (452,060 won), a 2% decrease from USD 307 (431,340 won) in the same quarter last year, but the company explained that, on a constant currency basis, revenue per customer was actually up 5%.

Bom Kim, Chairman of Coupang Inc., said during the Q2 earnings conference call, "Most customers who left after the personal information leak have returned, and their spending levels have recovered." He added, "We will continue to expand our product range and enhance services to win back customers who have not yet returned." He continued, "We have started early morning delivery in Taiwan, and growth businesses such as Coupang Eats are scaling up smoothly. We will keep expanding services that help customers save both time and money."

Growth businesses—including Rocket Delivery in Taiwan, Coupang Eats, and Farfetch—also maintained momentum. Revenue from growth businesses was USD 1.431 billion (2.1492 trillion won), up 20% from USD 1.19 billion (1.6719 trillion won) a year earlier. In constant currency terms, growth was 24%. Adjusted EBITDA loss from growth businesses was USD 219 million (328.9 billion won), a 7% reduction from the previous year.

Cash generation slowed. Operating cash flow for the past 12 months was USD 1.4 billion, down USD 484 million year-on-year, while free cash flow was USD 105 million, down USD 679 million for the same period. During Q2 alone, Coupang Inc. bought back 23.2 million shares (USD 459 million) of class A common stock to continue its share repurchase program.

National Tax Service Warns of 300 Billion Won Tax Assessment; Fire Losses to Be Reflected in Q3

In its public disclosure on August 5, Coupang Inc. revealed that it recently received a pre-assessment notice from the National Tax Service for about USD 208 million (about 300 billion won) in additional taxes. The National Tax Service completed its audit for the 2021–2025 tax years and demanded additional corporate income tax and value-added tax payments from Coupang’s Korean subsidiaries.

The company declared it disagrees with the tax assessment and intends to contest the decision through administrative appeals and, if necessary, litigation. Coupang Inc. stated, "The main issue involves transfer pricing and transactions between Coupang Corp., our Korean subsidiary, and Coupang Fulfillment Services (CFS). After external expert review, we believe our tax position is highly likely to be validated." The company also noted that it had set aside sufficient provisions in accordance with accounting standards to cover any potential future tax liabilities.

Losses from last month’s fire at the Incheon logistics center are also expected to be reflected in Q3 earnings. Coupang Inc. stated, "We are currently assessing the scale of damages caused by the fire and cannot reasonably estimate the full financial impact." However, the book value of inventory and fixed assets held at the affected logistics center, including mandatory payouts to sellers, is around USD 246 million (about 350 billion won). The company added that it maintains property and liability insurance for such risks and plans to submit a claim for insurance proceeds.

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