Coupang Funnels Over USD620M to US Headquarters Throughout 2024

(MENAFN) Coupang's South Korean subsidiary funneled over 900 billion won ($620 million) in expenses to its US headquarters throughout 2024, according to an industry report obtained by media on Sunday.

The US-listed e-commerce giant's audit report revealed that related-party expenses—payments directed to its head office or other American-based affiliates—reached 939 billion won last year.

Data shows that expenses transferred stateside, encompassing service fees and royalties, surpassed 2.5 trillion won ($1.7 billion) during the five-year span from 2020 through 2024, the report indicated.

Industry analysts have raised red flags that the financial structure may be designed to diminish profits at the South Korean operation while inflating assets at the US parent corporation.

"Dividends are clearly taxable, but service fees and royalties are areas where determining appropriateness is difficult, which is why tax avoidance controversies repeatedly arise," a tax expert who requested anonymity stated. "Transparency is especially important when transactions involve a parent company."

South Korean tax officials are reportedly launching a comprehensive investigation into Coupang, examining transactions with its US-based headquarters.

The company simultaneously faces heightened regulatory scrutiny after a data breach that authorities estimate may have impacted nearly 33 million users. Coupang has maintained that information from only approximately 3,000 accounts was compromised—an assertion disputed by regulators.

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