E-commerce giant expands direct purchases from rural, population-declining regions

Coupang direct fruit purchasing [Coupang]
Coupang direct fruit purchasing [Coupang]

Coupang announced Monday that its fruit purchases from rural farms this year have exceeded 7,000 tons, setting a record high.

The e-commerce company directly purchased 7,000 tons of fruit from eight rural areas between January and August, up 10 percent from the same period last year. Most of the sourcing regions — including Yeongam and Hampyeong in South Jeolla Province, Seongju, Uiseong, Yeongcheon and Goryeong in North Gyeongsang Province, and Gunwi-gun in Daegu — are designated population-declining areas by the Ministry of Interior and Safety. These regions have seen their populations shrink or stagnate for years.

The volume marks an all-time high for direct fruit purchases. The previous record was roughly 6,350 tons over the same January-to-August period last year. Coupang's rural fruit procurement has grown steadily — from 3,400 tons in 2022 to 5,600 tons in 2023, 6,000 tons in 2024 and about 7,600 tons last year. The company expects the figure to surpass 8,400 tons by year's end.

Coupang sources more than 30 varieties of fruit from these population-declining regions, including apples, oriental melons, plums, watermelons, strawberries and figs. As the company extended its dawn-delivery logistics network into areas of South Jeolla, North Gyeongsang and Gangwon Province that lack offline grocery infrastructure, customer demand for fruit grew, prompting the procurement expansion. The sharpest increases came from Goryeong in North Gyeongsang Province, known for its Ugok watermelons (up 60 percent); Hampyeong in South Jeolla Province, a hub for fig production (up 138 percent); and Gunwi-gun in Daegu, home to plum farms (up 73 percent).

The expanded direct purchasing is translating into higher farm incomes. The Gunwi Agricultural Cooperative Plum Shipping Association, which represents about 130 plum farms in Gunwi-gun, said its sales through Coupang this year reached 1.6 billion won ($1.16 million), doubling from the same period a year earlier.

"We will continue to expand our purchasing and cooperative partnerships with farms in population-declining regions so they can keep growing despite the challenges of finding new markets," a Coupang official said.

Eun Deok-woo (right), head of the Gunwi-gun Joint Business Corporation, poses for a photo with local farmers. [Coupang]
Eun Deok-woo (right), head of the Gunwi-gun Joint Business Corporation, poses for a photo with local farmers. [Coupang]

spa@heraldcorp.com