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  • Fast and Vast Scalability of Korean Logistics Service Close
    Fast and Vast Scalability of Korean Logistics Service
    Korea is home to the Port of Busan, the second largest transshipment port in the world, and Incheon International Airport, which has the third largest cargo volume in the world.
    In the Review of the Maritime Transport of the United Nations Conference on Trade and Development (UNCTAD), Korea ranked 3rd.
    Processing time required for export and import in Korea is short and cost is low, which makes it a business-friendly environment.
    Based on its excellent ICT infrastructure, Korea will launch the world’s first full-scale operation of a marine navigation service from 2021.
    "Major Logistics Infrastructure in Korea"
    No. 2 Port of Busan -Transshipment ratio (2019), No. 3 Incheon International Airport - International air cargo traffic (2019) Large view of images
    ※ Source: Busan Port Authority (2019)
    ※ * Source: Airports Council international (ACI) (2019)
    "Processing Time and Cost for Export and Import in Korea"
    Please refer to the information below
    Time required (per hour)
    Cost for Export and Import in Korea Export, Import
    Origin Export Import
    한국(fast) 13 6
    중국 18 37
    싱가포르 10 33
    일본 27 48
    Cost required (per USD)
    Cost for Export and Import in Korea Export, Import
    Origin Export Import
    한국(fast) 185 315
    중국 249 230
    싱가포르 335 220
    일본 241 275
    Large view of images
    ※ Source: World Bank Group "Doing Business 2020 Report"
  • Continued Growth Led by Air and Marine Transport Open
    Continued Growth Led by Air and Marine Transport
    In 2018, the Korean logistics industry saw increases in the number of companies, employees, and sales compared to the previous year.
    Sales of the air transport industry rose by 10.3% YoY, recording the biggest jump in sales since 2011.
    Moreover, the increase of marine cargo and air cargo, as well as the increase of supply of delivery and express services, led to an increase in sales for the freight and logistics infrastructure businesses.
    "Status of the Korean Logistics Industry"
    Please refer to the information below
    • Number of companies - 2017(375,274) → 2018(383,737) 2.3% 상승
    • Number of employees - 2017(1.133 million) → 2018(1.135 million) 0.2% 상승
    • Sales - 2017(KRW 142.2 trillion) → 2018(KRW 146.9 trillion) 3.3% 상승
    • Sales by industry
      • Land transport - 2017(64.3) → 2018(65.4) 1.8% 상승
      • Marine transport - 2017(27.4) → 2018(28.3) 3.3% 상승
      • 항공운송업 - 2017(22.7) → 2018(25.0) 10.3% 상승
      • Warehouse, transport related service - 2017(27.9) → 2018(28.2) 1.2% 상승
    • Component ratio of sales(KRW 146.9 trillion)
      • Land transport 44.5%
      • Marine transport 19.3%
      • 항공운송업 17.0%
      • Warehouse, transport related service 6.5%
    Large view of images
    ※ Source: Statistics Korea, Tentative result of transportation industry survey (November 2019)
  • Promotion of Various Logistics Businesses in Korea Open
    Promotion of Various Logistics Businesses in Korea
    Foreign direct investment in the logistics and distribution industries in Korea in 2019 was USD 3.92 billion.
    FDI in transport warehouses (logistics) was up 32.4% YoY, and 96% was greenfield investment.
    Several countries, including the US, Japan, the Netherlands, and Singapore, have entered the Korean market.
    Companies have entered the Korean market through a variety of ways. Some international companies have invested and established comprehensive logistics centers within Korea,
    import raw materials from other countries, such as Europe, create added value, and send their products outside of Korea for their business model.
    Joint ventures were also created with global investors in logistics and real estate to develop, invest, and operate in multiple logistics centers within Korea.
    Various forms of investment are being made, for example, IT-based cold chain logistics or air logistics led by the growth of overseas direct purchases and sales.
    US:FedEx, GERMANY:DHL, JAPAN:NH-SENKO, HONGKONG:ESR, US:EMP BELSTAR Large view of images
  • Policies for Logistics Innovation and Creation of New Industries Open
    Policies for Innovation and Creation of New Industries
    The bases and detailed processes of logistics policies of Korea are established following the National Logistics Basic Plan (Total period: 10 years).
    The National Logistics Basic Plan announced in March 2020 has four key strategies to establish Korea as a global logistics powerhouse through innovation and new industries.
    "Detailed Strategies of the 2020 National Logistics Basic Plan"
    Please refer to the information below
    • Fostering a high added-value logistics industry responding to industrial trends
      • Create new logistics industries with high added-value
    • Enter Overseas Logistics Market Observing Changes in the World Logistics Landscape
      • Enter the global logistics market by developing Korean-style GTO
      • Improve the global e-commerce delivery system
    • Develop and Spread Future Smart Logistics Technologies
      • Realize the early commercialization of drones and robotics at logistics centers
      • Develop a system to utilize data from land, sea, and air
    • Create a Sustainable Environment for the Logistics Industry
      • Develop a national hazardous commodities safety management system
      • Develop e-Navigation technology, etc.
    Large view of images
  • FEZ and FTZ Centered Logistics Clusters Open
    FEZ and FTZ Centered Logistics Clusters
    Seven regional logistics bases and complex logistics terminals that act as hubs in the national logistics system are currently in operation in five regions (Seoul metropolitan, Busan, central, Honam, and Yeongnam).
    Twenty-three logistics complexes for shippers and professional logistics companies are in operation (total area: 9.9 million m2), and seven additional complexes (total area: 21.44 million m2) are in development.
    Logistics companies are mostly located in Free Economic Zones and Free Trade Zones where benefits, such as duty referral, tax reductions or exemptions, and infrastructure and facilities, are offered to resident companies.
    Over 4,500 Korean and foreign logistics companies have occupied the free economic zones.
    In the Incheon, Busan-Jinhae, Gwangyang Bay Area, and Yellow Sea FEZs, where ports of global logistics are located, the logistics industry and clusters have been vitalized.
    Over 600 Korean and foreign companies are also located in thirteen free trade zones.
    ※ FEZ Information and Incentives [Confirm]
    "Major Logistics and Port Locations in Korea"
    Please refer to the information below
    • Incheon Free Economic Zone (IFEZ)
    • East Coast Free Economic Zone (EFEZ)
    • Gyeonggi Free Economic Zone (GGFEZ)
    • Daegu-Gyeongbuk Free Economic Zone (DGFEZ)
    • Chungbuk Free Economic Zone (CBFEZ)
    • Busan-Jinhae Free Economic Zone (BJFEZ)
    • Gwangyang Bay Area Free Economic Zone (GFEZ)
    Large view of images
    ※ Source: Korean Free Economic Zones website (www.fez.go.kr) [Shortcuts]
    ※ Source provider: Korea Transport Institute
Invest KOREA
Distribution/Logistics PM
Ghang Nam Hoon Service Industry Promotion Team
T.+82-2-3460-3285
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