[비즈한국] Public criticism of Kurly is mounting as Jung Seung-bin, CEO of Next Kitchen and husband of Kurly CEO Sophie Kim, was recently sent to trial on charges of sexually harassing an employee. Kurly had been experiencing a positive trend, including reporting a quarterly profit. Some in the securities industry even suggested that Kurly would re-attempt its Initial Public Offering (IPO). However, news of CEO Jung's sexual harassment charges is having a negative impact.
Kurly formalized its listing plans in December 2021 by attracting pre-IPO investments. At that time, Anchor Equity Partners invested a total of 250 billion KRW, or 100,000 KRW per share. Considering the total number of outstanding shares was approximately 38 million, Kurly's corporate value was estimated at around 3.8 trillion KRW. Two years later, during a 2023 paid-in capital increase, the new share issuance price was set at 66,148 KRW per share. Based on that issuance price, Kurly's corporate value was approximately 2.675 trillion KRW at the time.
As of January 2026, Kurly shares are trading at around 22,000 KRW per share on private stock trading platforms. Based on current market prices, the company's valuation is 930 billion KRW. This is a significant drop from the valuation of up to 4 trillion KRW or more estimated by the investment banking (IB) industry in 2021.
Kurly's performance is on the rise. According to business reports, revenue grew from 2.0372 trillion KRW in 2022 to 2.0774 trillion KRW in 2023, and 2.1956 trillion KRW in 2024. Profitability, previously considered a concern, has also improved. Operating losses of 233.5 billion KRW in 2022, 143.6 billion KRW in 2023, and 18.3 billion KRW in 2024 shifted to 1.7381 trillion KRW in revenue and 9.2 billion KRW in operating profit for the first three quarters of 2025. The company has succeeded in both revenue growth and a turnaround to profitability.
The decline in corporate value despite Kurly's improved performance is interpreted as a reflection of lowered expectations. In the early 2020s, expectations for e-commerce companies were high due to the COVID-19 pandemic. However, after numerous e-commerce firms like Wemakeprice, TMON, Barlan, and Interpark Commerce filed for rehabilitation, the outlook on the industry shifted. Wemakeprice and Interpark Commerce eventually declared bankruptcy. SK Group affiliate 11st also failed to find a buyer after years of seeking a sale.
Furthermore, while Kurly's performance has improved, assessments suggest its finances still have a long way to go. Kurly's debt ratio increased from 733.63% at the end of 2024 to 840.97% at the end of September 2025, a rise of 107.34 percentage points (p). Total liabilities stood at 731.8 billion KRW as of late September last year, while cash and cash equivalents were 220.9 billion KRW. Moreover, by the mid-2020s, it is said that Coupang has come to dominate the e-commerce industry, with some even suggesting that as long as Coupang exists, there are limits to the growth of other e-commerce players.
However, an opportunity arose for Kurly as Coupang was recently embroiled in controversies over personal data leaks. As many users declared they would quit Coupang, Kurly gained attention as an alternative. According to the retail industry, Kurly's order volume in December of last year increased by approximately 15% compared to the same period the previous year. Given that Kurly shares were trading in the mid-10,000 KRW range on private platforms last November, it is true that the stock price is also on an upward trend. Kurly had previously withdrawn its 2023 IPO plan, but with positive signs recently, some analyses suggest it will re-attempt the IPO.
Amidst this, public sentiment toward Kurly is deteriorating as CEO Sophie Kim's husband, Next Kitchen CEO Jung Seung-bin, has been sent to trial for sexual harassment. CEO Jung is accused of sexually harassing a probationary female employee at a restaurant. Given that Kurly has been famous for being a female-friendly company, this sexual harassment incident is expected to cause significant repercussions.
Next Kitchen is a company specializing in Home Meal Replacements (HMR). As a typical B2C company, it is inevitably sensitive to public opinion. Kurly holds a 45.23% stake in Next Kitchen. The structure is such that Next Kitchen's performance can affect Kurly. Next Kitchen generated 17.5 billion KRW in revenue from Kurly in the first three quarters of last year.
Following the controversy, Next Kitchen issued a statement saying, "We will conduct a comprehensive audit through an independent external professional organization to check whether the company's measures regarding this matter, including victim protection, were appropriate," and added, "Until the audit is completed, we will suspend the CEO and exclude him from all company business so that he cannot exercise any influence."
The controversy shows no signs of subsiding, with calls for a boycott of Kurly appearing on social media and other platforms. At the same time, signs of a resurgence for Coupang could be an unsettling factor for Kurly. Although a significant number of users left Coupang late last year due to various controversies, it is reported that its user base is currently recovering. If Coupang recovers its former standing, expectations for Kurly are likely to diminish.
If expectations for Kurly drop, an IPO will also become difficult. Considering that Anchor Equity Partners previously invested 100,000 KRW per share, it is hard to proceed with an IPO at a lowered valuation, as criticism from investors and shareholders would be unavoidable. CEO Sophie Kim owns a 5.71% stake in Kurly. As her stake is not overwhelming, she must remain mindful of shareholders. Regarding the IPO, Kurly stated, "There are no immediate plans, but it is true that we are preparing to go public when the market environment and internal conditions are favorable."