Premia TNC Taiwan Team
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Coupang Sets Sights on Taiwan Amid Global Expansion Plans
Coupang, Korea’s largest e-commerce company, first entered Taiwan in July 2021, gradually launching official services and signaling its full-scale global expansion. Coupang, which has focused on improving profitability in Korea since its listing on the New York Stock Exchange, chose Taiwan as its next overseas destination for more than just population size or language similarity.
Taiwan is a key Asian market with “immediate scalability” in the e-commerce ecosystem, encompassing logistics, payments, and consumer behavior. In particular, within the Greater China region, pro-business policies and a growing online consumer base make it ideal for implementing Coupang’s “rocket delivery” model.
In this article, we’ll explore why Coupang chose Taiwan and what implications it holds for Korean companies entering the Taiwanese market.
3 Key Reasons Behind Coupang’s Entry into Taiwan
1. Structure that Enables E-Commerce Expansion
- Taiwan’s total population is about half that of Korea, but its population density is among the highest in the world.
- The urban-focused consumer market centered around the capital, Taipei, is advantageous for implementing the rocket delivery model.
- Mobile commerce penetration rate exceeds 90%, focusing on the MZ generation accustomed to digital consumption.
2. Logistics Infrastructure and Supply Chain Stability
- Although it is an island nation, it is possible to build a logistics infrastructure that allows for same-day delivery nationwide.
- Advanced country-level road network and smart logistics center capacity.
- Low competition in last-mile delivery in Taiwan makes it easy to adopt Coupang’s fulfillment strategy.
3. Business Regulatory Environment and Accounting Standards
- Taiwan adopts IFRS-based TIFRS accounting standards to secure credibility among global investors.
- Simplification of corporate establishment procedures for foreign investment companies, allowing 100% foreign ownership.
- Low tax and regulatory risk, and high predictability of a stable local legal system.
Why Taiwan Should Be on the Radar of Korean Companies
Coupang’s Market Verification
- Coupang has already established infrastructure, including logistics centers, customer service, and payment systems.
- Evidence that the Korean operating model is acceptable in Taiwan.
- Follow-up companies can reduce learning costs and gain a speed advantage.
Cultural Similarity and Regulatory Stability
- High affinity for Korean consumer goods such as Korean Wave content, beauty products, and food.
- The market with the lowest political and regulatory risks among Greater China markets.
- An administrative system friendly to foreign investment and corporate establishment.
International Standardization of Accounting and Taxation
- The introduction of TIFRS facilitates the design of structures that connect with global headquarters and investors.
- Various structures can be designed, including receiving royalties overseas and transferring dividends.
Building a Sustainable Business Entity
- Easy to secure physical assets such as offices, warehouses, and employee hiring.
- Business visa issuance and personnel recruitment regulations are flexible.
- It is also easy to secure local corporate credibility.
Coupang’s entry into Taiwan reflects careful verification of the market’s potential, supported by favorable policies and strong infrastructure. For Korean companies, this presents a golden opportunity, entering at a stage that is neither too late nor overly complicated. Now is the ideal moment to act with strategic foresight and secure a competitive advantage.
However, successful expansion requires more than just setting up an overseas entity. Companies must take a systematic approach that goes beyond incorporation, including well-structured tax strategies, efficient asset transfers, and optimized organizational design. By leveraging Taiwan with a holistic strategy, businesses can ensure long-term stability and growth in the global market.
Take the Necessary Steps Through Local Taiwanese Experts
Founded in 2003, Premia TNC offers a one-stop solution, from corporate establishment to tax management and visa acquisition, with a dedicated Korean language support team providing professional consulting in key locations including Hong Kong, Singapore, Vietnam, Taiwan, and Dubai.
Premia TNC Taiwan Team
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Premia TNC Taiwan is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Singapore and across the region. Premia TNC Taiwan specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
