Coupang Inc. Faces Multifarious Challenges Amid Regulatory Scrutiny and Financial Pressures

Coupang Inc., the U.S.‑listed e‑commerce and logistics operator, has encountered a confluence of regulatory and operational issues in late January and early February 2026. The company’s stock, which closed at US $20.16 on 29 January 2026, sits below its 52‑week low of US $18.55 and has a price‑to‑earnings ratio of 96.44. With a market capitalization of US $36.5 billion, Coupang remains a high‑growth play in the Consumer Discretionary sector, but recent developments may affect investor sentiment.

1. Transfer of Related‑Party Expenses

An industry analysis released by Yonhap News Agency and reported by Korea Herald revealed that Coupang’s Korean unit transferred 939 billion won (approximately US $620 million) in related‑party expenses to its U.S. headquarters in 2024. The transfer, which covers payments to subsidiaries and affiliates, raises questions about the company’s internal cost allocation and the tax treatment of inter‑company transactions. Analysts note that such a sizable outflow could impact the company’s reported earnings for the fiscal year, potentially contributing to the elevated P/E ratio.

2. Data‑Breach Probe and Interim Chief’s Questioning

On 31 January 2026, Seoul Metropolitan Police conducted a 12‑hour intensive questioning of Coupang’s interim chief executive, Harold Rogers, over allegations of evidence destruction related to a massive data breach. Reports from The Star, Korea Times, and Korea Herald confirm that Rogers was summoned to the police station and declined to discuss the charges publicly. The investigation, still in its early stages, could lead to regulatory sanctions or civil liability, especially if the breach is found to have caused significant customer harm.

3. Pending Class‑Action Litigation

A notice issued on 31 January 2026 by Coupang’s legal department announced the February 17, 2026 application deadline for potential class‑action lawsuits. While the notice does not disclose the specific allegations, the timing suggests a connection to the data‑breach investigation or to the large expense transfer. Investors should monitor any filings for indications of liability exposure or settlement negotiations.

4. Labor Protests and Public Image Concerns

Separately, unionized couriers and bereaved family members staged a rally outside Coupang’s Korean head office on 1 February 2026, demanding a temporary halt to the company’s seven‑day delivery service during the Lunar New Year holiday. The protest, covered by Korea Times, highlighted worker safety concerns and attracted media attention to Coupang’s logistics practices. While not directly tied to the financial or regulatory issues, the public outcry could influence consumer perception and regulatory scrutiny of the company’s labor policies.

5. Broader Context and Potential Impacts

  • Financial Position: The recent expense transfer may affect earnings quality, and the data‑breach investigation could impose additional costs through fines, remediation, or litigation.
  • Reputational Risk: Public protests and regulatory questioning may erode customer trust and affect brand reputation.
  • Market Reaction: Given the company’s high P/E ratio and volatility, these developments may lead to short‑term sell pressure, especially if the company fails to provide a satisfactory resolution or transparency.

In summary, Coupang Inc. is currently navigating a series of interrelated challenges: significant inter‑company expense transfers, a high‑profile data‑breach inquiry, looming class‑action litigation, and labor‑related protests. Investors and stakeholders should closely monitor regulatory filings, court documents, and company disclosures to assess the evolving risk profile and its potential impact on the company’s valuation and operational stability.