Coupang expands first Taiwan logistics center with 1.1 trillion won capital injection

Coupang is expanding its first fulfillment center in Taoyuan, Taiwan, to broaden its infrastructure for medium and large cargo delivery. The move comes after the company recently received approval from Taiwanese authorities for a large capital injection, as it continues to upgrade its logistics network.

Coupang announced on Nov. 5 that it will expand the operational space of its first logistics center in Taoyuan, Taiwan. The expansion is aimed at increasing storage capacity for medium and large products and improving delivery efficiency amid continued growth in its local business.

Coupang has rapidly expanded its logistics infrastructure since entering the Taiwanese market in October 2022. Earlier this year, it launched a fourth smart logistics center in Taoyuan, establishing a next-day delivery network called Rocket Delivery covering about 70% of Taiwan. Coupang, which operates a Rocket Installation service in Korea for delivering and installing home appliances and furniture, will directly strengthen its capability to handle bulky cargo in Taiwan through the expansion of the No. 1 center.

The company has also secured funding to support the infrastructure expansion. Taiwan's Ministry of Economic Affairs Investment Commission approved on Oct. 28 a capital increase of 25.5 billion Taiwan dollars (about 1.1 trillion won) applied for by Coupang. This was the single largest amount, accounting for 68.7% of total foreign investment approved that day, and the funds will be used for additional construction of local fulfillment centers and expansion of product categories.

Taiwan's e-commerce market is currently contested by Singapore-based Shopee and local companies Momo and PChome. According to statistics from Taiwan's retail research institute Weilai Liutong, Coupang Taiwan's average monthly visits in the first half of this year reached 9.59 million, up 107.7% from a year earlier. While visits to existing competitors have stagnated, Coupang has increased its market share by leveraging large-scale logistics investment and delivery speed.

Coupang's logistics infrastructure expansion also opens new export channels for Korean small and medium-sized enterprises (SMEs). By handling customs clearance, logistics, and local delivery in one package, Coupang has lowered entry barriers for companies lacking their own export capabilities. More than 10,000 Korean consumer goods SMEs have now entered Taiwan through Coupang.

Coupang invested more than $3 billion (about 4.17 trillion won) from 2022 to 2024 in logistics automation and artificial intelligence (AI) systems across the Asia-Pacific region. The company announced it will continue long-term investment by expanding its logistics infrastructure from the current northern Taoyuan base to central Taichung and southern Kaohsiung, covering all of Taiwan.

※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.