Coupang takes step closer to world of financing

Coupang's delivery trucks are parked in a parking lot in Seoul. [NEWS1]

Coupang is preparing to go into financing.

According to local media reports, Coupang registered for a license to offer loans and financing services to the Financial Supervisory Service (FSS).

Coupang refused to confirm the application.

A license for a financing business allows companies to provide credit card services, leases and offer loans. The company was reported by local media to have applied for a license to offer services excluding credit card services.

Coupang has been preparing to offer finance-related services for several years.

The company registered trademarks for Coupang Financial in June 2019, according to the Korea Intellectual Property Rights Information Service. CFC Preparatory Corporation, a wholly owned subsidiary of Coupang Pay, changed its name to Coupang Financial in June. Coupang Pay is wholly owned by Delaware-incorporated Coupang.

To grant the license, the FSS will look into whether the company that will carry out the business — Coupang Financial — and its parent company — Coupang Pay — failed to repay debt or had to pay a fine for violating finance-related laws in the past three years.

Coupang reported a net loss of $209.3 million in the first quarter, 29 percent less than a $295 million net loss a year earlier period.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]