Coupang Invests KRW 75B in Government AI Fund

Seoul, South Korea - Coupang (NYSE: CPNG) said Thursday it will invest KRW 75 billion (US$54.1 million) in a government-backed artificial intelligence fund as part of the Ministry of SMEs and Startups' Next Unicorn Project.

The government's Fund of Funds will provide a matching investment of KRW 75 billion, creating a KRW 150 billion (approximately US$108.2 million) fund managed by venture capital firm SBVA, the company stated.

The fund will invest in 14 AI startups and growth companies, with investments averaging over KRW 10 billion (US$7.2 million) per company.

Coupang, which went public on the New York Stock Exchange in 2021, said the investment aligns with government initiatives to foster AI companies. The company was valued at over $1 billion prior to its public listing.

As of December 2024, Coupang held 2,100 technology patents, compared with 160 patents in 2019.

The company was included this year in a list of 100 global companies selected by U.S. patent analysis firm LexisNexis, along with Meta and Alphabet.

Coupang said it will provide AI expertise and support for global market expansion to portfolio companies, in addition to capital investment.

The company also plans to continue investing in data center construction and AI-based logistics and customer service operations.

SBVA manages approximately KRW 2.5 trillion (US$1.8 billion) in assets and has portfolio companies, including medical AI firm Lunit and AI company Upstage. The firm has more than 100 portfolio companies worldwide.

Coupang operates logistics systems that use artificial intelligence and machine learning to process product orders.

The company launched delivery services in Taiwan in 2022 to support South Korean small and medium enterprises seeking access to overseas markets.

Coupang offers programs that support small businesses, including promotional events for regional merchants, campaigns for Korean companies in Taiwan, access to its logistics system for small operators, and online education.

The company announced that sales through its Good Store program reached KRW 3 trillion (approximately US$2.2 billion) in 2024, with plans to further expand the program.

Coupang will use its logistics technology experience to support AI startups and growth companies through investment and development assistance.

The company will maintain technology-based operations, continue collaborating with small merchants, and develop AI-based logistics and customer service capabilities.

(US$1 = KRW 1,387)