Coupang's recovery reignites cutthroat competition among South Korean e-commerce rivals

As the boycott following Coupang Inc's personal data breach loses steam, the battle for customers among South Korean e-commerce platforms is heating up again.

Six months after the data breach, the industry consensus is that most customers who left have returned. E-commerce platforms are now intensifying their marketing campaigns to avoid losing those customers again.

Gmarket is leading with an aggressive seller support push, committing 500 billion won (about $329 million) annually to cover the full cost of discount coupons for major promotions such as "Big Smile Day" and scrapping coupon-related fees altogether. Some analysts draw parallels to the strategy AliExpress used to establish itself in South Korea — heavy advertising featuring actor Ma Dong-seok and sweeping seller incentives. "The internal mood is that this is not the time to worry about profitability," an industry official said. "We are investing without holding back on costs."

SSG.com is doubling down on its new membership program, "SSG 7 Club," running an event from June 5 through June 14 in which new subscribers receive 3,000 won back — 100 won more than the monthly fee. Customers returning after a long absence also receive a welcome-back coupon worth around 10,000 won.

11st has opened a dedicated "11st Specialty Store" on JD Worldwide, the cross-border e-commerce platform of China's JD.com, expanding sales channels for K-beauty products, processed foods and health supplements.

Monthly active user data show a clear Coupang Inc recovery. According to WiseApp·Retail, Coupang Inc's MAU last month reached 33.687 million, up 506,846 users, or 1.5 percent, from January — extending a three-consecutive-month growth streak. Gmarket also added 612,384 users over the same period, a 9.0 percent gain, to reach 7.409 million. By contrast, 11st fell from 8.109 million to 7.580 million, and SSG.com dropped from 2.170 million to 1.967 million.

Meanwhile, the Personal Information Protection Commission is reviewing a sanctions proposal against Coupang Inc at its plenary session Wednesday. Under current personal data protection law, a fine of up to 3 percent of annual sales can be imposed for a data breach. Applied to Coupang Inc's sales last year of 45.5 trillion won, that formula could yield a penalty of up to 1.3 trillion won.