On December 7, 2022, Coupang welcomed Philip S. Goldberg, the U.S. Ambassador to the Republic of Korea, as well as the deputy mayor of Daegu Metropolitan City, the Ministry of Science and ICT’s artificial intelligence-based policy officer, and other Korean officials to its Daegu Fulfillment Center (FC).
The event, titled “Creating WOW: Showcasing Coupang’s Investments & Innovations Across Korea in 2022,” served as a forum to discuss the company’s latest contributions to Korean society, which have supported the growth of customers, workers, and small businesses across the country in a sustainable manner. Key Coupang executives also attended the event, including General Counsel and Chief Administrative Officer, Harold Rogers, and Representative Director of Business Management, Hanseung Kang.
The gathering of U.S. and Korean government officials and Coupang executives at the Daegu FC held symbolic significance, as Daegu was the first city in which Coupang launched its game-changing Rocket Delivery service. The state-of-the-art Daegu FC, one of the largest FCs in Asia, is also one of the hallmarks representing Coupang’s commitment to investing in Korea.
“Coupang is outfitting the Daegu FC with advanced technology not found in any other logistics facility, not just in Korea, but in the world,” said General Counsel and Chief Administrative Officer Rogers in his opening speech at the event. “From artificial intelligence to machine learning to custom robotics, the technology of the Daegu Fulfillment Center improves Coupang’s ability to make good on our core promise to our customers: for tens of millions of households, ordering tens of millions of items, in tens of millions of locations, each will receive their deliveries the next morning—every morning—as they awaken. And they’ll get those items at the best prices.”
By building a unique end-to-end fulfillment and delivery network equipped with the latest technology in Korea and investing USD 5.4 billion in the country to date, Coupang has been able to analyze and optimize every step of the e-commerce process, explained Rogers. This not only has enabled Coupang to deliver millions of items at faster speeds and lower prices for customers, but also has created a better work environment for employees. For example, robotics and AI technology reduce or even eliminate sorting and packing work, drastically reducing work intensity. Meanwhile, small-to-medium-sized enterprises also benefit, as they can leverage Coupang’s existing infrastructure to reach millions of customers nationwide.
Coupang’s model also significantly reduces emissions thanks to technological optimization and the elimination of unnecessary logistics steps. For example, Coupang is able to deliver 85 percent of orders without additional box packaging. Combined with other eco-friendly innovations such as reusable eco-bags for grocery delivery, these efforts have the equivalent effect of planting 8 million new trees every year.
“The gains we’ve created for customers, Coupang’s workers, SMEs, and the environment have gone hand-in-hand,” said Rogers. “That’s innovation at its core, that’s the role the private sector can and should play in bettering our world, and that’s the role in which Coupang is determined to continue our leadership.”
Ambassador Goldberg also gave a speech at the event, focusing on Coupang’s contributions to the partnership between the U.S. and Korea. “Coupang’s business is emblematic of the two-way trade partnership between our countries,” he said. “In the U.S., sales generated jobs in every state in nearly every economic sector. These trade opportunities were created as a fulfillment of the promise of the U.S.-Korea Free Trade Agreement, which celebrates its 10th anniversary this year. In Korea, Coupang is one of the biggest contributors to U.S. foreign direct investment. Coupang has invested over $5 billion in Korea, and of course, that creates jobs and it grows the number of services here.”
Following additional speeches from Representative Director Kang and the attending Korean officials, the guests were given a tour of the Daegu FC’s facilities. They had the opportunity to watch Coupang’s technology at work, as automated-guided vehicles (AGVs) and sorting robots continuously moved customers’ orders around the floor.
“Coupang’s logistics workplace is transforming into a state-of-the-art digital technology site that combines artificial intelligence algorithms and automated robot technology,” said Representative Director Kang. “Our digital technology is meaningful in that it is upending conventional wisdom that digital technology will reduce employment and lead to employment in and revitalization of the local economy. Our investments in these technologies are also contributing to improving the working environment of our employees and dramatically reducing work intensity. We will continue working to create value for customers, workers, and local communities alike, as well as to create jobs, develop the local economy, and serve as a foundation for small businesses to grow.”
