Coupang reports a fourth-quarter loss after a massive data breach in South Korea hit customer growth and revenue, signaling muted near-term expansion for the e-commerce giant.
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| Following a large-scale customer data breach and regulatory scrutiny, Coupang posts a fourth-quarter loss and warns of subdued growth in the months ahead. Image: CH |
Seoul, South Korea — February 27, 2026:
Coupang has swung to a fourth-quarter loss, underscoring the financial and reputational toll of a major data breach that has shaken confidence in one of Asia’s most prominent online retailers.
The company reported revenue of $8.8 billion for the October–December period, falling short of the $8.9 billion forecast compiled by LSEG SmartEstimate. Coupang also posted a net loss of $26 million, reversing a profit recorded a year earlier. Despite the disappointing results, its New York-listed shares edged up 1.9% after the earnings release, suggesting investors may see the setback as temporary.
At the center of the downturn is the fallout from a November data breach affecting approximately 34 million customers in South Korea, where the company generates more than 90% of its total revenue. The breach exposed names, phone numbers and shipping addresses, though payment details and login credentials were not compromised. Even so, the scale of the incident triggered public backlash and intensified scrutiny from regulators.
On an earnings call, Chief Financial Officer Gaurav Anand said active customers in the company’s core product commerce segment rose 8% year over year to 24.6 million in the fourth quarter. However, that figure slipped from 24.7 million in the previous quarter, a decline that appeared linked to the breach and its aftermath. Anand noted that customer metrics have begun stabilizing since late in the quarter, with reactivations increasing and growth trends improving.
Still, near-term expectations remain subdued. Constant-currency growth in the product commerce segment likely bottomed at about 4% in January before showing early signs of improvement in February. For the first quarter, Coupang expects consolidated constant-currency revenue growth of 5% to 10%, a modest pace for a company long associated with rapid expansion. Management warned that both growth and profitability would remain muted over the coming months as the breach’s impact gradually fades over the course of the year.
The controversy surrounding the breach has added complexity. Company executives said an investigation by a cybersecurity firm concluded that the incident stemmed from a targeted attack carried out by a former employee using insider knowledge. However, South Korea’s Science Ministry has publicly attributed the breach to management failures rather than a sophisticated external cyberattack, raising questions about internal controls and oversight.
The episode has opened the door for rivals to lure customers away at a sensitive time. Coupang also faces structural headwinds, including a proposed regulatory change that could intensify competition in ultra-fast overnight delivery services — a cornerstone of its dominance in South Korea’s e-commerce sector.
Compounding the pressure, South Korea’s antitrust regulator recently fined Coupang 2.2 billion won for allegedly pressuring suppliers to cut prices and shoulder additional costs, as well as delaying vendor payments. Although unrelated to the data breach, the penalty adds to mounting regulatory scrutiny.
Taken together, the results illustrate how operational disruptions, regulatory risks and reputational damage can quickly converge for technology-driven retail platforms. While Coupang’s scale and market leadership in South Korea remain intact, its latest earnings highlight a critical inflection point: rebuilding customer trust may prove just as important as restoring growth momentum in the year ahead.