[비즈한국] Coupang has decided to fully compensate sellers for inventory losses resulting from the fire at its Incheon logistics center. This move to provide preemptive, internal compensation before insurance processing and the determination of legal liability is being viewed as highly exceptional. While sellers welcome Coupang’s swift decision, some are raising concerns about whether this incident might affect future commission rates or sales conditions.
Concerns Over Prolonged Delays Eased... Sellers Say "Swift Compensation is a Relief"
Coupang has decided to fully compensate 'Rocket Growth' sellers for inventory losses caused by the fire at its Seoknam-dong logistics center in Incheon. The company is taking the initiative to compensate internally before the results of the fire investigation and insurance settlements are finalized. Coupang Fulfillment Services (CFS) stated, "To support sellers who suffered inventory losses and operational disruptions due to this fire, we have decided to provide preemptive compensation under our own responsibility, even before the fire investigation and insurance processes are concluded."
The scope of compensation includes products stored in the area where the fire occurred, as well as inventory in zones that were not directly touched by the flames. This measure accounts for secondary damages that may arise after the fire, such as delays in inventory retrieval and contamination or damage caused by dust and debris.
The fire broke out at 6:54 AM on the 18th on the 6th floor of the Coupang 32 Logistics Center in Seoknam-dong, Seo-gu, Incheon. By that afternoon, the flames had spread along the exterior wall up to the 7th floor, and the fire was completely extinguished at 8:35 PM on the 22nd, five days after it began. It is reported that the complex internal structure of the logistics center and the large volume of stored goods hindered the entry and extinguishing efforts of the firefighting teams.
The suspension of logistics center operations caused significant confusion for sellers. Inventory that was being stored was marked as sold out, halting sales, and as delivery became impossible, some orders were subsequently canceled. Coupang took steps to respond, such as issuing compensation coupons to customers whose orders were canceled.
In particular, companies selling seasonal summer products expressed their distress, noting that they had missed their peak season. One seller remarked, "I had products with high demand during the vacation season, but all the inventory was lost in the fire. Because seasonal products have a short window for sales, even a few days of disruption can deal a significant blow."
Amidst this, a sense of relief is palpable among sellers following Coupang's announcement of a preemptive, full compensation policy. One seller stated, "I’ve had problems with other 3PL (third-party logistics) providers in the past where I received inventory compensation, but it actually took over a year. I expected the process to drag out this time as well, but I am relieved that Coupang is moving to compensate so quickly."
'Rocket Growth' is a service where Coupang handles storage, packaging, and delivery for sellers who maintain ownership of their inventory at Coupang's logistics centers. Industry observers suggest that since Rocket Growth products are not directly purchased by Coupang, the compensation will likely be at a level similar to the settlement amounts sellers receive when products are sold normally.
CFS announced that it would use its internal system to determine inventory quantities for each seller and provide individual guidance starting in mid-August regarding the scale of compensation, scheduled payment dates, and relevant procedures.
Fines, Poor Performance, and Now a Fire... Coupang’s Triple Whammy
Coupang seems to be facing a string of negative developments. Regarding a large-scale personal data breach that occurred in November 2025, the Personal Information Protection Commission imposed a fine of 624.681 billion won on Coupang this past June, citing violations of safety obligations and the collection of personal data without legal basis. This is the largest fine since the enforcement of the Personal Information Protection Act. Since then, the situation has expanded into a diplomatic issue between South Korea and the U.S., with Coupang’s U.S. headquarters and some members of the U.S. Congress labeling it as targeted regulation against American digital companies.
Sanction procedures by the Korea Fair Trade Commission (KFTC) are also underway. Coupang Eats is being investigated for alleged "demands for most-favored-nation status," in which it reportedly required partner vendors to provide more favorable transaction terms than those offered to competing platforms. Coupang proposed a 60 billion won mutual growth plan and applied for a consent decree last April, but as the KFTC rejected it, the possibility of heavy fines has increased. Industry experts predict that the fine could reach between 30 billion and 40 billion won.
Growth is also showing signs of slowing. Coupang's revenue for the first quarter of this year was 12.4597 trillion won ($8.504 billion), an 8% increase compared to the same period last year. However, the double-digit growth trend that had persisted since its IPO has fallen to a single digit for the first time. During the same period, operating losses reached 354.5 billion won ($242 million), turning from a profit in the same period last year to a deficit. It is the largest quarterly loss since the fourth quarter of 2021.
Some sellers are expressing concerns that the burden of fire compensation and recent successive losses might eventually be passed on to the vendors. As costs related to poor performance, fines, and the logistics center fire mount, there is growing fear that Coupang might raise commission fees or advertising costs, or expand requirements for promotion participation to improve profitability. One seller stated, "I'm worried that in the process of recouping its losses, Coupang might demand higher costs or stricter transaction terms from sellers."
CFS emphasized, "We are truly sorry for the concern caused by this unexpected accident. We will do our utmost to handle the site cleanup and support local residents, and we will take responsibility to provide the best possible support to our valuable partners, our sellers, so that they do not experience business difficulties due to this event."