Investors will be watching Coupang’s upcoming financials for signs of how deeply a major November data leak and a prospective regulatory change are affecting the South Korean e-commerce leader’s business.
The company disclosed that about 34 million users had personal information exposed in the breach. The leaked data included names, phone numbers and shipping addresses, but not payment details or login credentials. A government-led probe is ongoing; in a recent update the Science Ministry attributed the incident to management failure at Coupang rather than a sophisticated external cyberattack.
Coupang responded in a public statement that it would "take all necessary steps to prevent further harm and continue strengthening safeguards to prevent a recurrence".
Customer behaviour and near-term metrics
Available usage metrics show early signs of consumer reaction. Coupang’s monthly active mobile users decreased 3.5% in January compared with November, while rival Naver reported a 23% increase in the same interval, according to WISEAPP. Data from IGAWorks Mobile Index indicates average daily consumer spending on Coupang fell 6.3% to about 139.2 billion won in January from November.
Industry representatives have been blunt about the reputational impact. "Consumer trust in Coupang has been shaken," said Lee Kwang-lim, an executive director at the Korea Chainstores Association, which represents large retailers such as E-mart and Lotte Mart.
Market reaction and analyst revisions
Analysts have trimmed expectations ahead of the earnings release. LSEG data shows the average fourth-quarter revenue estimate for Coupang was cut by 2.2% from the prior quarter, while the core earnings estimate fell by 6.7%.
New York-listed Coupang’s shares have dropped around 34% since the company disclosed the breach, while shares of some traditional retailers and logistics companies have rallied amid perceptions of opportunity for incumbents and third-party delivery providers.
Regulatory developments that could reshape competition
Coupang’s service model has relied heavily on its overnight fulfillment promise, branded as "Rocket Delivery," which generally enables customers to order by midnight for delivery before dawn. For more than a decade, South Korea restricted large brick-and-mortar retailers from operating overnight to protect small neighbourhood stores. That rule did not apply to e-commerce platforms, which supported the rapid growth of firms like Coupang.
Earlier this month the government indicated plans to ease late-night restrictions for hypermarkets, a policy shift that would allow large physical retailers to extend operating hours and expand their overnight delivery services - intensifying competition in an area where Coupang has claimed a distinct advantage.
Rivals ramping up fast-delivery capabilities
Established retailers and tech platforms are moving to seize the moment. Retailers including E-Mart and speciality grocers such as Kurly, along with platforms like Naver, are expanding fast-delivery offerings to challenge Coupang’s speed-focused model.
Naver’s chief executive, Choi Soo-yeon, said the company recorded "meaningful" increases in both the number of online users and the amount spent in January. Logistics providers are also reporting higher volumes: CJ Logistics, which counts Naver among its customers, said shipment volume for overnight or one-day delivery rose 120% in the fourth quarter compared with a year earlier.
Competitive positioning and remaining advantages
Despite the setbacks, some analysts argue Coupang retains structural advantages. Shinyoung Securities senior analyst Seo Jung-yeon noted that "There is still nothing quite as convenient as Coupang," adding that the crucial issue is "how effectively competitors seize this opportunity to gain share." The comment underscores a view that entrenched convenience and integrated services still matter even as rivals expand their offerings.
Outlook
The combination of damaged consumer trust, reduced usage metrics and regulatory shifts make this a pivotal period for Coupang. The forthcoming financial results will offer investors a clearer picture of whether the company can stabilize user engagement and spending, or whether competitors will convert short-term momentum into sustained market gains.
For now, the company faces both a reputational recovery task and a strategic response to a changing competitive landscape shaped by policy decisions and active moves by rivals.