moving boxes

South Korean Ecommerce Company Makes its Public Debut

Coupang’s First Trading Day

Yesterday, South Korean ecommerce company Coupang (CPNG) made its debut on the New York Stock Exchange. The company’s shares began trading at $59.60—a 70% increase from its initial public offering price of $35.

The company’s name is a blend of the English word “coupon” and the Korean sound for hitting the jackpot, “pang.” Coupang’s market share has grown during the COVID-19 pandemic to hit 24.6% in 2020, which is up from 18.1% in 2019.

Coupang’s Growth Over the Past Year

The company has made big investments in infrastructure to make its customer experience as seamless as possible. For example, customers who belong to Coupang’s membership service can return items simply by leaving them outside their doors without a box or return label.

“Our mission is to create a world where customers wonder ‘How did I ever live without Coupang?’” explained the company’s founder, Bom Suk Kim.

Comparisons to Amazon and Alibaba

Coupang is often compared to Amazon (AMZN) in the US and Alibaba (BABA) in China. Both of these ecommerce giants saw significant growth after going public. Consumer markets in the US and in China are significantly larger than they are in South Korea. Coupang will not have as much room to grow domestically as Amazon and Alibaba, but it could still be poised for significant expansion.

The South Korean ecommerce market had an estimated value of $90.1 billion in 2020 with an annual growth rate of 22.3%. The country’s population is about 52 million with the vast majority of people living in dense urban areas. South Korea had a robust delivery culture long before ecommerce became widespread, with customers ordering food and other services over the phone. For this reason, analysts expect that many of the ecommerce trends taking place during the pandemic will be here to stay.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Kaydee Ambas

TLS 1.2 Encrypted
Equal Housing Lender