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National Assembly Legislation

  • Act on the Development and Management of Logistics Facilities
    • Competent Ministry : Ministry of Land, Infrastructure, and Transport
    • Advance Publication of Legislation : 2019-11-05
    • Opinion Submission Deadline : 2019-11-19
Reasons for Proposal

The recent spread of new distribution trends such as mobile shopping, omnichannels (online-offline combined shopping), and O2O (online to offline) has triggered major growth in urban consumer logistics services such as courier services offering paid services for the shipping, storage, etc., of small-sized or small quantities of goods to be delivered to consumers upon another person’s request.
To promote such urban consumer logistics services, however, the relevant business entities must be able to address large-scale demand for consumer logistics by securing enough facilities for the procurement, loading, unloading, sorting, storage, etc., of cargo in downtown areas, and it is essential to develop urban logistics infrastructure to process B2C logistics in small quantities at high frequency. However, this is very difficult to achieve as local complaints make it difficult to secure sites, and urban and Gun plans do not prescribe grounds on which to install such facilities.
Expansion of urban consumer logistics infrastructure would not only reduce logistics expenses by reducing transportation distances (and times), but also enable half-day delivery services in conjunction with IT infrastructure, delivery time estimation services, drive-thru services, etc., and thereby
enhance customer convenience, increase business competitiveness, boost work efficiency, improve working environments, and otherwise exert a positive influence across industries.
Accordingly, the Amendment prescribes that when new urban development, redevelopment, or other development projects have been implemented and there is a likelihood of population concentration and large-scale demand for consumer logistics, urban and Gun plans shall fully incorporate courier and other urban consumer logistics facilities to process the traffic of small-sized and small quantities of goods delivered to consumers. It stipulates that when not enough urban consumer logistics facilities have been secured, the Minister of Land, Infrastructure and Transport may request the heads of local governments to expand urban consumer logistics facilities to a reasonable size by utilizing industrial complexes near downtown areas as well as idle land underneath overpasses or in railway dockyards, etc. It prescribes provisions concerning the establishment of and support for urban consumer logistics facilities, thereby aiming to promote the development of the logistics industry and contribute to the advancement of the national economy (Article 2, subparagraph 5-4; Article 21-8; Article 21-9; Article 21-10; Article 22-2, paragraph 5 newly inserted).

Note
This Amendment rests on the premise that the “Partial Amendment to the Trucking Transport Business Act” (Bill no. 23109), represented and proposed by Assembly member Ham Jin-gyu, is passed. If the bill is not passed or is passed with modification, this Amendment must be adjusted accordingly.
 

Major Provisions

Establishment of urban consumer logistics facilities (Article 21-9), designation of urban advanced logistics complexes (Article 22-2)

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