South Korea‘s total e-commerce spending was $196 billion in 2021 and is projected to rise at a CAGR of 10% to $291 billion by 2025, according to projections by Euromonitor International.
If so, South Korea would become the third largest e-commerce segment globally, behind the United States and China.
Also, according to the company Coupang, the total spending on retail, groceries, consumer food service and travel in South Korea was 483,000 million dollars in 2021 and is expected to increase to 616,000 million in 2025, based on also estimates from Euromonitor International.
Within that, South Korea is home to one of the largest and fastest growing e-commerce opportunities anywhere in the world.
Coupang owns and operates an e-commerce business that primarily serves the Korean retail market.
Through its mobile applications and Internet websites, the company offers products and services that span a wide range of categories, including home furnishings and décor, apparel and beauty products, fresh food and groceries, sporting goods, electronics, restaurant ordering and delivery, travel, streaming content, and everyday consumables, delivered through a fully integrated technology, fulfillment, and logistics infrastructure.
More than anything, the company’s core operations, including purchasing, marketing, technology, administration, and logistics and fulfillment infrastructure functions, are predominantly located in South Korea, with operations and support services performed in China, Singapore, Japan, Taiwan and the United States.
Coupang was launched as an online marketplace in 2010 to enable merchants to harness technology and innovation to grow and compete.
To enhance the customer experience with comprehensive control, it launched its own inventory pick in 2013 and Rocket Delivery in 2014.
It has also expanded its network and systems to new offerings that will improve the lives of its customers.
In 2019, it launched its Rocket WOW membership program for a flat monthly fee. It started by offering unlimited free shipping with no minimum spend.
Today, members also enjoy Dawn Delivery and Same-Day Delivery options, unlimited free returns for 30 days, Rocket Fresh groceries, and streaming content on Coupang Play.
In 2019, it also launched Coupang Eats, which allows consumers to order from restaurants that are available for pickup or delivery through delivery partners contracted directly by Coupang.