Coupang app installs hit yearly high in December despite data breach

(News1)

Coupang app downloads surged in December to the highest level of the year, defying expectations of a user exodus following a large-scale personal data breach, as the South Korean e-commerce giant’s dawn delivery service and aggressive year-end discounts continued to draw consumers.

According to data from IGAWorks’ Mobile Index on Sunday, Coupang recorded 526,834 new app installations in December, up more than 120,000 from 400,585 in November. It marked the first time monthly installs exceeded 500,000 since March 2024, when the figure reached 521,697, and was the highest monthly total last year.

The rebound came despite Coupang’s announcement on Nov. 29 that a data breach had exposed personal information of 33.7 million users, fueling expectations that users would abandon the platform. Instead, analysts say the figures point to a resilient user base underpinned by the company’s powerful dawn delivery offering and strong year-end promotional campaigns.

Industry observers also cite a “lock-in” effect driven by Coupang’s delivery infrastructure and membership ecosystem. “Some consumers temporarily stopped using the service after the data breach, but many reinstalled the app due to convenience and price competitiveness,” an industry source said. “Even amid short-term trust concerns, usage patterns are not easily disrupted once a service becomes embedded in daily life.” The source added that user inflows could rise further as customers begin using 50,000 won ($34) coupons offered by Coupang as part of its compensation package from Jan. 15.

Following the data breach, rival e-commerce platforms stepped up discount marketing, leading to a sharp rise in new app installations. The market views this as partly reflecting spillover demand from Coupang’s dented trust.

Naver Plus Store posted 788,119 new installs in December, up 185,000 from the previous month, while Gmarket added about 56,000 installs to reach 182,579. Naver expanded its membership offerings with a series of year-end promotions and a partnership with Lotte Mart to introduce fresh food delivery, while Gmarket rolled out an intensive discount campaign.

Analysts say the Coupang incident has accelerated a shift in South Korea’s e-commerce market, with domestic players expanding strategic benefits — including dawn delivery, rapid shipping, discounts and partnerships — and ramping up marketing. As a result, the market is moving away from a Coupang-centric structure toward a more competitive landscape in which multiple apps are used in parallel.

By contrast, major Chinese e-commerce platforms saw app installations fall across the board last month, as promotions and marketing efforts weakened in the second half of the year after an aggressive push earlier on.

AliExpress recorded 304,669 new installs in December, down about 130,000 from November, while Temu saw installs fall by roughly 97,000 to 730,252. Shein also posted a decline, with new installs dropping by about 78,000 to 147,574.