Invest KOREA

KOTRA expands the operation of “Overseas Joint Logistics Center” to 129 KBCs
Introduce an updated service in “Overseas Logistics Network Project Briefing” on August 13

KOTRA will expand overseas logistical bases globally to help SMEs struggling in exports. “Overseas Joint Logistics Center” in operation in 12 countries of 22 regions will be expanded to 129 overseas offices in 84 countries. KOTRA operates “Overseas Joint Logistics Center” in cooperation with specialized local logistical company to allow Korean export companies to use overseas logistics warehouses at low cost.

Even after SMEs succeeded in exporting for the first time with KOTRA’s help, it often has remained as one-off case frequently. Because a buyer orders various products in small quantity, exporting companies have had difficulties in providing products at the right time. Thus, the most realistic strategy appears to be stocking inventory in local places and conduct sales activities in a flexible manner.

KOTRA emphasized that export companies can catch four birds with one stone if they take advantage of “Overseas Joint Logistics Center”. They can have foundation for continuous sales, reduce logistical cost, shorten delivery time, and expand further distribution channels. KOTRA estimates that expanded services by “overseas joint logistics center” will increase the scale of export deals from USD 160 million by 146 companies in 2018 to USD 300 million by 300 companies by 2020.

In addition to expansion of overseas joint logistics center, KOTRA provides “Customized Logistical Services”. It will find out local logistics companies capable of providing services such as customs clearance, packaging, delivery, and consulting as demanded by customers to actively address difficulties of exporting companies. In particular, it plans to enhance cooperation with local logistics companies specialized in online services including import, real-time inventory check, return support, and customer service in line with booming e-commerce.

Na Chang-yup, Director General of Middle-Standing Enterprise Department said, “The expansion of our logistics services is part of our various efforts designed to revitalize exports,” adding that “We hope SMEs utilize this service actively as it gives them an opportunity to establish a stable ground for exports”

KOTRA plans to give guidance on the updated services to Korean SMEs by holding “2019 Overseas Logistics Network Briefing” at its head office in Yeomgok-dong, Seoul on Tuesday, August 13, at 2 PM.

Source: KOTRA (August 12, 2019)