Coupang, early payment of 300 billion won in settlement amount to 130,000 small and medium-sized business owners in time for Chuseok < ESG Management-Social Contribution < Article

Coupang announced on the 13th that it will pay out over 300 billion won in settlement payments early to ease the financial burden on small and medium-sized merchants ahead of the Chuseok holiday.

Coupang announced today that it will pay 313.1 billion won in settlement payments due at the end of September to Marketplace and Rocket Growth sellers. The target is 137,000 small business sellers from Marketplace (approximately 120,000 people) and Rocket Growth (approximately 17,000 people).

Coupang’s early payment of settlement amounts for small and medium-sized merchant sellers is intended to support small and medium-sized merchants who temporarily experience a surge in demand for funds, such as payment for raw materials around the holidays. This measure is expected to help small and medium-sized merchant sellers manage their funds in the midst of an economic downturn amid high interest rates and high prices.

Coupang has been at the forefront of supporting the financial management and market development of small and medium-sized businesses, including by providing early payment of 100 billion won in sales proceeds to small and medium-sized sellers in 2021. In 2022 alone, it provided over 680 billion won in support of market development for small and medium-sized businesses.

In particular, this early payment of the settlement amount is expected to be of great help to local small and medium-sized merchants. Currently, about 74% of Coupang’s small and medium-sized merchant sellers are located in non-Seoul areas. The transaction amount of small and medium-sized merchants in non-Seoul areas such as Jeju, Ulsan, Chungbuk, and Gyeongbuk (as of 2022) is about twice as high as that of small and medium-sized merchants in Seoul. The total transaction amount of small and medium-sized merchants in Coupang has more than doubled from 2019 to KRW 9.18 trillion in 2022.

A Coupang official said, “Coupang’s true growth is through mutual growth with local small and medium-sized businesses,” and “We will continue to expand support measures that can provide real help to small and medium-sized business sellers.”