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"What about the MOU?" Jeonbuk's plan to help local companies enter Taiwan through Coupang falls through

[비즈한국] The results of the Memorandum of Understanding (MOU) between Jeonbuk State and Coupang are being evaluated as falling short of expectations. Although Jeonbuk State provided integrated logistics support services to companies enrolled in Coupang's Rocket Growth, the service has now been discontinued due to low demand. Efforts to help local companies enter overseas markets through Coupang also failed to yield results. There is growing sentiment of disappointment, especially considering how heavily the MOU was promoted at the time of signing.

Jeonbuk State announced that it signed an 'MOU on Win-Win Cooperation' with Coupang in December 2023. The agreement aimed for mutual cooperation to revitalize the Jeonbuk economy, with specific areas including: policy cooperation to support domestic and international sales channels for local SMEs and small business owners and to develop the logistics industry; policy cooperation to strengthen self-sustainability through digital capacity building and local specialty product development; and other matters deemed necessary by both parties, such as the revitalization of the local tourism industry.

Jeonbuk State also announced plans to promote exchange and cooperation for expanding online sales channels and e-commerce activities for products produced by SMEs and small business owners, based on a friendly partnership with Coupang. At the time, Jeonbuk State Governor Kim Kwan-young expressed his expectations, stating, "I hope that excellent products from Jeonbuk State will become known beyond the nation and reach as far as Taiwan through this cooperation with Coupang, greatly contributing to the expansion of sales channels."

However, two years later, criticism is mounting that the cooperation between Jeonbuk State and Coupang has failed to meet expectations. As part of the MOU in 2024, Jeonbuk State provided an integrated logistics support service to local SMEs that were selling through Coupang Rocket Growth. This meant covering a portion of the costs for companies selling their products via Coupang Rocket Growth.

Coupang Rocket Growth is a service where Coupang handles delivery, inventory management, and returns once a company stocks its products at a Coupang logistics center. Coupang then settles the payment with the company after deducting a certain commission. The integrated logistics support service from Jeonbuk State ran for only one year in 2024. A Jeonbuk State official explained, "We terminated the service because the business demand was low."

At the time of signing the MOU, Jeonbuk State even mentioned the possibility of local companies entering overseas markets. According to a Jeonbuk State press release, Coupang held an export briefing session for Taiwan prior to the MOU, which received significant interest and positive response from participating business owners. Jeonbuk State Governor Kim Kwan-young also expressed his expectations by specifically mentioning Taiwan.

In reality, Coupang has recently been very active in the Taiwanese market. In a conference call for the third quarter of 2025 last November, Coupang Inc. Chairman Bom Kim said, "Growth is accelerating (in the Taiwan market), and we have recorded remarkable revenue growth compared to the same period last year," adding, "The level of customer influx in Taiwan is similar to what we saw when we were building our business in Korea."

However, Jeonbuk State has not been able to benefit from Coupang's entry into Taiwan. When Bizhankook asked Jeonbuk State about the status of local companies entering Taiwan through Coupang, the state replied, "We reviewed the business implementation, but it did not proceed." While the state does offer online marketing support for local companies, this is a program that has been in operation since before the MOU with Coupang was signed.

While there is still a possibility that Jeonbuk State and Coupang could cooperate to achieve results in the future, it does not look easy at the moment. This is because Coupang has recently been under fire from politicians and civil society due to a personal data breach. There is even talk of the possibility of Coupang facing a business suspension. On December 31 last year, Fair Trade Commission (KFTC) Chairperson Joo Byung-ki stated at a National Assembly hearing that, regarding Coupang, "If necessary, we could even impose a business suspension."