A placard is held outside Coupang’s headquarters in Seoul. (Lee Sang-sub/The Korea Herald)
A placard is held outside Coupang’s headquarters in Seoul. (Lee Sang-sub/The Korea Herald)

E-commerce giant Coupang saw its weekly users fall about 6 percent during the month since it revealed a data breach that occurred last year, data showed Monday, as security concerns spread across the online retail market, including Chinese platforms.

According to data from market research firm WiseApp Retail Goods, Coupang’s weekly active users fell 5.8 percent, or about 1.7 million, to about 27.7 million in the Dec. 22 to Dec. 28 period, down from 29.4 million in late November. Despite the decline, the company continues to hold the top position in South Korea’s e-commerce market.

Coupang said on Nov. 29 that data from about 33.7 million customers had been exposed, though it later said only around 3,000 accounts were retained and deleted by the perpetrator. Calling the assessment “unilateral,” Korean authorities are continuing their probe, including analysis of a laptop linked to the breach.

Chinese e-commerce operators, which trail Coupang in user numbers, also posted sharp declines. Weekly active users at AliExpress fell 16.8 percent to about 5.03 million, while Temu slipped 3 percent to roughly 4.09 million. Analysts note the Coupang incident, carried out by a former employee of Chinese nationality, has further weighed on Chinese platforms already facing security concerns.

By contrast, other domestic rivals posted gains. Naver’s Plus Store, which ranked as the most downloaded shopping app in December, saw weekly active users rise 10.4 percent to 3.82 million, while 11Street recorded a 1.6 percent increase to 3.69 million.

Gmarket’s weekly active users, however, fell 1.4 percent to 3.67 million after reports of unauthorized transactions involving roughly 60 customer cards in late November.

User behavior is showing early signs of fragmentation, according to industry officials, even as Coupang’s dominant position is unlikely to collapse overnight.

“Coupang’s user base has not fallen sharply, but we are seeing signs of an exodus in low-priced categories,” one industry official said, adding that domestic competition is set to intensify as demand shifts.

An analyst at LS Securities pointed to Coupang’s compensation package, which includes 5,000 won coupons for its main platform and food delivery service Coupang Eats, as well as two 20,000 won vouchers for Coupang Travel and its luxury platform R.LUX.

“The compensation package could deepen consumer backlash, as Coupang has aimed its coupons at categories with low usage but high prices and fees,” the analyst said. “Major e-commerce players are stepping up efforts to attract new customers as cracks appear in Coupang’s fast-delivery model.”


minmin@heraldcorp.com