Coupang will invest $2.2 billion to roll out Rocket Delivery across Korea

Coupang plans to invest over $2.2 billion to expand its delivery network, aiming to increase coverage of its next-day Rocket Delivery service and establish new fulfillment centers in eight locations nationwide.

Coupang's delivery trucks [YONHAP]

Coupang will invest more than 3 trillion won ($2.2 billion) over the next three years in a bid to expand the coverage of its one-day delivery offering.

The announcement comes after Alibaba Group vowed to invest $1.1 billion over the same period, with Coupang moving to double its investment in Korea to stay ahead of its rapidly emerging Chinese counterpart.

Under the investment plan, the Korean e-commerce operator aims to expand its same- or next-day Rocket Delivery to people in far-flung areas.

Coupang ultimately plans for Rocket Delivery — currently available in 70 percent of the nation — to cover 88 percent of its regions in 2027, including rural and mountainous areas. It eventually hopes to make the service available to "all residents nationwide," accounting for 50 million of Korea's 51.3 million population.

Rocket Delivery is accessible to Coupang's paying subscribers. Others can utilize the service for purchases of 19,800 won or more.

Coupang said it will invest 3 trillion won from this year through 2026 in establishing new fulfillment centers, implementing advanced automation technologies and enhancing its delivery network.

Coupang will invest more than 3 trillion won over the next three years, aiming to expand its Rocket Delivery to every corner of Korea by 2027. [COUPANG]

The company will soon operate or construct new fulfillment centers in at least eight locations nationwide, including cities like Busan, Daejeon and Gwangju, as well as Gimcheon in North Gyeongsang, Jecheon in North Chungcheong, Icheon in Gyeonggi and Cheonan in South Chungcheong.

“It is anticipated that the widespread availability of Rocket Delivery services will substantially enhance the quality of life for local residents,” the company said Wednesday, adding, “it is expected to elevate the appeal of residential environments and become a crucial infrastructure to combat the decline in regional populations.”

Coupang has spent approximately 6.2 trillion won over the past decade to establish more than 100 logistics facilities across 30 regions nationwide.

Chinese e-commerce giants are currently making inroads into the country, intensifying competition within the domestic retail market.

Alibaba's AliExpress saw an increase of 4.63 million monthly active users in February from the previous year, while Coupang's user growth remained relatively stagnant, adding only 0.57 million new users.

AliExpress became the second most popular shopping app following Coupang after its monthly active users in Korea surged to a record 8.18 million in February, according to data from WiseApp, Retail, Goods. Temu, operated by Chinese e-commerce firm PDD Holdings, gained 5.81 million users within just seven months of its Korean debut, ranking fourth place.

“Coupang aims to enhance its competitiveness by bolstering its nationwide logistics network, and particularly by leveraging its core service, Rocket Delivery,” an industry insider said.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]