[fn Editorial] Rocket and Dawn Delivery Usher in a New Era of Distribution—Regulation Is Not the Answer

E-commerce company Coupang posted record-breaking quarterly results once again in the third quarter of this year, with sales reaching approximately 12.7 trillion won. This marks a 20% increase compared to the same period last year. Operating profit also exceeded 200 billion won for the second consecutive quarter, a 51.5% rise year-on-year. These impressive results come amid fierce competition from Chinese e-commerce giants such as AliExpress and Temu.
The driving force behind Coupang’s performance lies in its Rocket Delivery service, which has been a major investment since the company’s inception. It is well known that Coupang has endured years of losses to build its logistics system. Rocket Delivery allows most products to be delivered the day after purchase, thanks to a next-day delivery system. This is possible because Coupang directly purchases and stores its inventory. It is no exaggeration to say that this innovative logistics structure has shaped Coupang’s success today. The product commerce sector, which includes Rocket Delivery, accounts for the overwhelming majority of Coupang’s total sales.
On this day, Kim Bom-seok, Chairman of Coupang, stated, "We will offer more products through Rocket Delivery and accelerate logistics automation." He expressed his intention to further increase delivery speed and maximize the range of Rocket Delivery products to meet consumer demand. He also announced plans to aggressively expand this growth model into Taiwan, which shares a similar lifestyle culture with Korea, making it a promising challenge.
It is noteworthy that Rocket and Dawn Delivery have become an integral part of consumers’ daily lives. Logistics innovation that delivers at the time consumers want is now the top priority for all distribution companies, not just Coupang. Delivery speed and a high-quality product lineup are directly linked to a company’s future. Companies are fiercely competing with large-scale investments, and the distribution ecosystem is being reshaped around these services.
The dawn delivery market, which was worth only 500 billion won in 2018, grew to 12 trillion won in 2023 and is expected to reach 15 trillion won this year. The thirtyfold growth in just seven years demonstrates strong consumer support. For dual-income couples and the rapidly increasing number of single-person households, dawn delivery has become an essential service. As demand has grown, so has the number of related workers, from delivery drivers to small and medium-sized business owners, farmers, and fishermen. In addition, chartered bus workers who transport dawn delivery staff are active nationwide. Related distribution jobs are expected to continue increasing.
The recent proposal by the Korean Confederation of Trade Unions (KCTU) to ban dawn delivery is an unrealistic idea that ignores these realities. The KCTU argues that, to protect workers’ health, non-essential night work should be minimized and dawn delivery should be abolished. However, the delivery drivers responsible for dawn deliveries have openly opposed the union, calling it a "declaration of livelihood deprivation." A representative of the chartered bus association urged an end to the debate, stating that suspending dawn delivery would undermine the lives of ordinary people. Banning dawn delivery would also be devastating for small business owners who have struggled to find sales channels.
The government and the ruling party must carefully consider these realities. Some within the ruling party are reportedly exploring indirect regulatory legislation instead of a complete ban on dawn delivery, such as total working hour limits and restrictions on consecutive night shifts. While it is important to protect the health rights of delivery workers, the right to livelihood is even more urgent. Regulation is not the answer.