(ATTN: UPDATES with details in last 3 paras)

SEOUL, Aug. 5 (Yonhap) -- E-commerce giant Coupang Inc. said Wednesday it swung to a net loss in the second quarter from a year earlier due to fines related to a massive data breach.

In the three months that ended in June, the U.S.-listed company shifted to a net loss of 865 billion won (US$570 million) from a net profit of 43.5 billion won in the same period last year, it said in a press release.

Coupang, which generates most of its revenue from its Korean operations, has faced strong public backlash following the disclosure of a data breach in November 2025 involving more than 37 million customers.

In June, the Personal Information Protection Commission imposed a record fine of 624.7 billion won over the data breach and the collection of users' online activity without their consent.

Sales in the Product Commerce segment, its core online shopping business, rose 1 percent from a year earlier to $7.42 billion in the second quarter.

"Our Product Commerce results this quarter include the fines recently imposed by Korean regulatory authorities. While these fines are still subject to judicial review and we plan to appeal them through the courts, we recorded the expenses this quarter," Coupang Chief Financial Officer (CFO) Gaurav Anand said during an earnings conference call.

Following the incident, a majority of customers not only returned but also resumed spending at their previous levels, Coupang founder and Chairman Bom Kim said.

Customer spending, excluding customers who left during the incident and have not returned, increased 16 percent from a year earlier in the second quarter, he said.

Based on that trend, Coupang expects third-quarter sales to grow 8-9 percent from a year earlier despite the Chuseok holiday falling in late September this year. Chuseok fell in October last year.

In the second quarter, revenue from the Developing Offerings segment, which includes its Taiwan business and food delivery service Coupang Eats, increased 20 percent from a year earlier to $1.43 billion.

The number of active Product Commerce customers rose 3 percent on-year to 24.7 million.

Coupang said it repurchased $459 million worth of shares in the second quarter after its board approved a $1 billion stock buyback program in the previous quarter.

The company also swung to an operating loss of 835 billion won in the second quarter from an operating profit of 209.3 billion won a year earlier.

Sales rose 4 percent to 13.3 trillion won from 11.97 trillion won a year earlier.

Separately, Coupang said it had been imposed additional taxes of US$208 million following the National Tax Service's (NTS) audit of the corporate income tax and value-added tax filings of its South Korean subsidiaries for the 2021-2025 tax years.

The NTS questioned transfer pricing arrangements and transactions between Coupang Corp. and its logistics unit, Coupang Fulfillment Services, the company said.

"We disagree with the proposed adjustments and intend to vigorously defend our positions through available administrative remedies and, if necessary, judicial proceedings," it stressed.

kyongae.choi@yna.co.kr

(END)

  • Fans, celebrities support BTS' Grammy boycott
  • Police drop underage dating charge against actor Kim Soo-hyun
  • S. Korea in talks with U.S. military over air base access following white phosphorus leak: sources
  • (LEAD) BTS says it will not submit music for next year's Grammys

  • (2nd LD) U.S. military drone flies over inter-Korean border area, prompts civilian evacuation

  • Fans, celebrities support BTS' Grammy boycott

  • Police drop underage dating charge against actor Kim Soo-hyun
  • S. Korea in talks with U.S. military over air base access following white phosphorus leak: sources
  • (3rd LD) Temperatures soar to record 42.5 C in southeast
  • (LEAD) Police raid Starbucks Korea over controversial promotional event