Naver Gains Ground in South Korea’s E-Commerce Market as Coupang Faces Post-Breach Shifts
South Korea’s e-commerce landscape is undergoing a notable shift, with Naver capitalizing on a personal data breach at rival Coupang to expand its market share. According to data from WiseApp Retail, Naver’s Naver Plus Store saw 7.5 million monthly active users in February, a 5.9% increase from January, while Coupang though still leading with 33.1 million users experienced a 0.2% decline in the same period.
Naver’s growth extends beyond user numbers. Samsung Securities reported that Naver Shopping’s transaction volume surged 28% year-over-year in February, outpacing Coupang’s 10% growth and the broader market. This momentum has driven Naver’s commerce revenue to 1.054 trillion won ($790 million) in Q4 2025, a 36% annual increase, with full-year revenue reaching 3.69 trillion won ($2.76 billion) the company’s fastest-growing segment.
To challenge Coupang’s dominance in fast delivery, Naver is aggressively expanding its logistics network. The company aims to increase N Delivery’s share of Smart Store transactions to 50% within three years, leveraging partnerships like Kurly N Mart, a joint grocery service with Kurly, which has seen monthly transaction growth exceeding 50%.
Naver’s AI-driven recommendation technology is further strengthening its platform. The Naver Plus Store app surpassed 12.9 million cumulative downloads by Q4 2025 and was recognized as a top new shopping app in the Asia-Pacific region by Sensor Tower. In February, Naver introduced a beta AI shopping agent to enhance personalized product recommendations and search functionality.
The commerce boom has also fueled Naver’s fintech ecosystem, with payment volume reaching 23 trillion won ($17.2 billion) in Q4 2025, a 19% year-over-year increase. Analysts, including Oh Dong-hwan of Samsung Securities, predict sustained growth, citing improved delivery capabilities, membership benefits, and AI-driven shopping services as key drivers.
As Naver continues to close the gap with Coupang, the shift underscores the competitive dynamics of South Korea’s e-commerce sector, particularly in the wake of security concerns at its largest player.
Source: https://www.upi.com/Top_News/World-News/2026/03/09/e-commerce-market-shift-coupang/6581773114452/
Coupang cybersecurity rating report: https://www.rankiteo.com/company/coupang
"id": "COU1773117067",
"linkid": "coupang",
"type": "Breach",
"date": "3/2026",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'industry': 'Retail/E-commerce',
'location': 'South Korea',
'name': 'Coupang',
'type': 'E-commerce Company'}],
'data_breach': {'type_of_data_compromised': 'Personal Data'},
'description': 'South Korea’s e-commerce landscape is shifting as Naver '
'capitalizes on a personal data breach at rival Coupang to '
'expand its market share. Coupang experienced a 0.2% decline '
'in monthly active users in February, while Naver’s Naver Plus '
'Store saw a 5.9% increase, with transaction volume surging '
'28% year-over-year.',
'impact': {'brand_reputation_impact': 'Loss of market share to competitor '
'Naver',
'data_compromised': 'Personal Data',
'operational_impact': 'Decline in monthly active users (0.2%) and '
'slower transaction growth (10% YoY vs. '
"Naver's 28%)"},
'references': [{'source': 'WiseApp Retail'},
{'source': 'Samsung Securities'},
{'source': 'Sensor Tower'}],
'title': 'Coupang Personal Data Breach Impacting E-Commerce Market Share',
'type': 'Data Breach'}