4 trillion of deficits after Coupang’s splendid US debut… Let’s ask Kim Bum-seok, “When is the surplus?”

Bum-seok Kim, Chairman of Coupang’s Board of Directors, held a video conference with a correspondent in New York, USA on the 11th (local time). [화상회의 캡처]

“The biggest reason for listing Coupang on the New York Stock Exchange was its massive funding. We will continue to invest aggressively, continuously and deliberately in the future.”

Press conference with Chairman Kim Bum-seok, Coupang listed on the New York Stock Exchange on the 11th
“Listed in New York to attract investment in the world’s largest capital market”
Offer increased 41% from $35 to close at $49.52
5,220 billion won financing… “Domestic investment such as logistics system”

Bum-seok Kim, chairman of the coupang board of directors, said at a meeting with US correspondents on the 11th (local time) that he plans to continue to invest aggressively without fear of a deficit based on the funds raised by listing on the New York Stock Exchange. It means that it will focus on raising long-term corporate value rather than short-term stock prices.

Coupang shares listed on the New York Stock Exchange on the same day ended at $49.52, up 41.49% ($14.52) from the public offering price of $35. CNBC reported that Coupang raised $4.6 billion (about 5.2 trillion won) through this IPO. This is the best performance among companies that have done an IPO in the New York Stock Market this year.

Regarding future investments, Chairman Kim said that he would focus on the Korean market. However, regarding the acquisition of the food service delivery company Yogiyo, he answered, “I have to be confident.” The following is one question and one answer.

Why did you choose to be listed on the New York Stock Exchange?

“Korea is the only one of the world’s top ten e-commerce markets that Amazon and Alibaba did not dominate. The company that stopped it was the Korean unicorn. Amazon and Alibaba are trying to dominate many markets with enormous funds from the world’s largest stock markets. Our listing target was also large-scale financing and investment attraction, so I thought it was natural to go to the world’s largest capital market, and that was the right decision.”

How are you going to spend 5 trillion won of newly raised funds?

“We will secure competitiveness on the global stage and continue to invest in aggressive customer innovation as we have invested so far. We will create good jobs and especially revitalize the local economy. Coupang’s logistics infrastructure is’end-to-end’ from apps to customer door delivery. It’s a unique logistics system called’End’. We plan to continue investing in that system.”

CEO Bae Seok-han, CEO Park Dae-joon, emphasized that the raised funds will be intensively invested in’customer experience upgrades’. CEO Park said, “Reinforcement of logistics centers and related infrastructure, and creation of local economic jobs will be achieved,” he said. “Over the next five years, we plan to create more innovative services by hiring 50,000 additional people and optimizing the nationwide distribution network.”

How did the differential voting rights influence the decision to list the New York Stock Exchange?

“That was also one of the many things we could use. However, this listing goal was to attract investment, and this has the biggest impact. Global companies go to New York to raise capital to secure global competitiveness.”

On the 11th, at the Coupang listing ceremony held at the New York Stock Exchange, Coupang Chairman Kim Bum-seok and executives and employees are celebrating. [뉴스1]

The reason why it is the New York Stock Exchange, not the NASDAQ.

“The New York Stock Market has a long tradition and is meant to join the community of world-class companies. Along with them, the desire to show that Korean unicorns are competitive in the global capital market and are qualified to enter such communities. There was also.”

“Today, the Korean flag and the Stars and Stripes were hung in front of the New York Stock Market, and the Coupang logo and rocket were drawn on a large banner. The New York Stock Exchange is the oldest and largest capital market in the world. “I do” he said.

On this day, when the executives and employees, including Chairman Kim, climbed to the podium to ring the opening bell, the flags of the Stars and Stripes and the Taegeukgi were hoisted side by side.

The cumulative deficit is 4.55 trillion won. When will the turn to the surplus come true?

“If you can think of it as an investment rather than a deficit…. Thanks to colleagues, investors, and customers who believe in and support the long-term vision, this is a great opportunity to meet long-term investors. This is a good opportunity to meet long-term investors. Aggressively, consistently, and in the future, I’m planning on investing in a deliberate way. Rather than saying that (the deficit) needs to be overcome, it would be nice to think that there is an investment plan that will continue.”

Is there a roadmap for advancement to Southeast Asia or the United States?

“I can’t tell you that in the long run it isn’t. We have a desire to export K-commerce to other markets and services that customers are impressed with, but for the time being, there are many things we have prepared for the home market and our customers. I have a lot to do, so I will focus on it.”

For sustainable growth, we shouldn’t have to stay in Korea alone.

“First of all, let me tell you about the premise. The Korean market is not so small. The Korean commerce market is one of the largest in the world, with over 530 trillion won. The Korean economy is ranked 10th in the world, and the e-commerce market is in the top 10 in the world. Currently, it ranks fifth. Also, among the world’s top 10 e-commerce markets, Korea is the only market that has not been dominated by Amazon and Alibaba. I hope this listing will provide a good opportunity to show the potential of the Korean market and the potential of Korean unicorns.”

There must be a part inspired by Amazon.

“Foreign reporters and investors are very envious that there is a service that gives you instant returns and refunds just by putting them at your door. It was possible because of the huge technology and logistics investments. There are parts inspired by Amazon, of course. We are obsessed with customers and innovate. The same part, but there is a view that the field we invested in is unique: Just as Samsung was inspired by Sony but eventually surpassed them, Korea too quickly learns but is admired by the possibility of making it even more surprising. “

Do you have any plans to take over’Yogiyo’?

“When it comes to mergers and acquisitions (M&A), the standards are high. We have to consider the cultural part too… We take the cultural part very seriously. Many companies can only see a business perspective, but we are so obsessed with our customers. This is because we have tried to make the DNA that will solve the most difficult problems without avoiding. It cannot be said that we are closed for all M&As, but we have to be convinced that we are the right decision through a lot of analysis and a lot of thoughts. to be.”

The corporate value was recognized higher than expected.

“Benjamin Graham said,’The stock market is a popular voting machine in the short term and a weighing machine in the long term.’ Like when it was a publicly traded but private company, it was obsessed with customers, obsessed with creating long-term customer value, and focused on becoming a good company that creates social values that can have a better impact on society, and short-term control never mind It is my hope to become such a company that writes.”

Regarding the succession of incidents and accidents such as worker deaths, Kang Seung said, “Coupang is the third largest domestic employment company with direct employment of 50,000 people. As such, workers are the backbone of the company, and workers’ safety and working conditions are very important,” he said. “We will continue to propose new industry standards and do our best to develop the industry.”

Chairman Kim said, “For 10 years, we have been running only looking at our customers. In order to solve the customer’s uncomfortable thoughts, we have been challenged that can sometimes seem reckless, and we have invested enormous capital to build a logistics network and develop technology, but in the end, we It seems to be the result of culture.” He then emphasized that “the path that has been taken so far has been an effort to figure out what customers want most, stick to it, and solve those difficult problems that others are trying to avoid.”

Washington = Correspondent Park Hyun-young [email protected]

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