Jang Seob Yoon
Research expert covering South Korea
Logistics industry in South Korea - statistics and facts
Being a peninsula, South Korea’s geography gives it access to all three major modes of transportation. Logistics are a vital component for economic activity, serving as the network behind the transportation and storage of various goods and products. Apart from the actual act of physically moving items, having adequate space for handling and storing them is an important facet to consider. The essential nature and wide range of commercial logistics means that several businesses have been able to rise in prominence by offering specialized services in diverse fields.
Which companies lead South Korea’s logistics industry?
Although the global logistics industry is led by foreign companies, plenty of notable South Korean companies provide logistics services domestically. The wide reach of conglomerates is highlighted with subsidiaries from Hyundai, CJ, LX, and Lotte all having a strong presence in the industry. In the case of Geo-Young, the company boasted expertise in moving goods for the healthcare and pharmaceutical industry in South Korea. However, the domestic logistics scene is also distinctly divided by different methods of transport, with companies wary of those trying to expand into other modes.Package delivery in South Korea
The package delivery sector underwent significant growth from the supply side after regulation changes from an authorization basis to a registration basis lowered the barrier to entry. Such services have become a modern staple for many South Koreans, who are now accustomed to online food delivery as well as next-day delivery services. Another structural advantage is the prevalence of high-rise apartments across the country, which inherently offer more efficient settings for logistical activities.The future of logistics
The advent of autonomous vehicles and delivery drones present an exciting prospect for logistics moving forward. Amidst such potential disruptions, it remains to be seen whether this could also lead to shifts for companies at the forefront of the industry. An integrated logistics company that provides holistic services by combining multiple modes of transport could have a transformative effect. The emergence of e-commerce giant Coupang and its subsequent subsidiary delivery company has had a similar impact in the domestic package delivery landscape. This underlines the fact that even a well-established market like logistics is not immune to change.
