Coupang to hike WOW membership fee by 58 percent from Saturday

Coupang is raising its WOW membership fee by 58 percent to 7,890 won ($5.8).

Coupang headquarters at Songpa District, southern Seoul. [NEWS1]

Coupang is raising its WOW membership fee by 58 percent to 7,890 won ($5.8).

The e-commerce player said Friday the membership fee will be raised to 7,890 won from 4,990 won, up 58 percent, starting from Saturday.

It is the first hike in two years and four months. It was raised from 2,990 won to 4,990 won in 2022.

Existing members will be charged starting at their first payment date of August.

Members can use unlimited delivery for free, including the ultrafast Rocket Delivery, and also access Coupang Play, an online streaming service.

"Still, WOW members can enjoy around 10 benefits with a fee that is around half that of other OTT players in Korea," Coupang said in a statement.

Coupang had around 14 million members as of last year. Monthly membership revenues will likely increase to 110.5 billion won from 69.9 billion won with the fee hike.

Coupang Eats, the third-largest player in Korea's food delivery market, rolled out unlimited free food delivery for paid members in March.

The service offers free delivery regardless of order amounts, distances or frequency. Additionally, members can still apply multiple discount coupons simultaneously.

Currently, Netflix charges 13,500 won for its membership fee, while Tving charges 9,500 won. Disney +'s membership fee starts from 9,900 won.

Coupang reported its first-ever annual operating profit of $473 million in 2023, with annual revenues reaching $24.4 billion, a 20 percent increase from the previous year.

BY SARAH CHEA [chea.sarah@joongang.co.kr]