[Edaily Reporter Han Jeon-jin ] Coupang Inc., the parent company of Coupang, has been notified by the National Tax Service that it must pay an additional 300 billion won in taxes and has decided to file an appeal.

In its second-quarter consolidated earnings report filed with the U.S. Securities and Exchange Commission (SEC) on the 5th (Korea time), Coupang Inc. stated that the National Tax Service had completed a tax audit of corporate income tax and value-added tax for some of its South Korean subsidiaries last June and sent a notice of the results. The audit covered the tax years 2021 through 2025. The additional tax assessed by the National Tax Service, including surcharges and interest, amounts to approximately $208 million (about 300 billion won).

This notice focused on transfer pricing and transactions between Coupang and Coupang Fulfillment Services (CFS). The National Tax Service proposed disallowing corporate income tax deductions for costs related to services provided by CFS to Coupang, as well as other tax adjustments.

Coupang Inc. stated, “We do not agree with this tax assessment announced by the National Tax Service and plan to actively defend our position through available administrative remedies and, if necessary, legal proceedings.” The company maintains that it has set aside sufficient provisions to cover the potential tax adjustments.

Losses from the fire at the Incheon logistics center that occurred last month will be reflected in the financial results starting in the third quarter. Coupang Inc. explained that a fire broke out at its leased logistics center in Incheon last July, causing significant damage to the facility, leased structures, equipment, and inventory assets.

Immediately prior to the fire, the book value of Coupang’s inventory and fixed assets at the facility, along with its obligations related to seller inventory, was estimated at approximately $246 million (about 350 billion won). However, this is not the final loss amount. Coupang Inc. stated that it is difficult to reasonably estimate the total loss and financial impact at this time and that it will pursue insurance claims under its property and liability insurance policies.

Coupang, Inc. reported an operating loss of $556 million (835 billion won) for the second quarter of this year, reflecting a fine related to a personal data breach incident.