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Logistics Tenant Profile #6 - Chungcheong: The final logistics battleground: Korea's central region

Carter Kim • 31/05/2023
The Chungcheong region, located in the central part of South Korea, has a high concentration of logistics centers, particularly in areas connected to major transportation networks such as the Gyeongbu and Jungbu Expressways. Notably, approximately 81% of the total logistics center area is concentrated in five key areas: Cheonan, Eumseong, Sejong, Jincheon, and Daejeon.
This region has a high proportion (61%) of self-owned logistics centers based on manufacturing, but there is also strong demand for rental logistics centers to meet distribution needs. Recently, due to rising land prices and regulatory restrictions in the Seoul metropolitan area, there has been increasing demand for relocating logistics centers to the Chungcheong region and for automation. As a result, new supply is expected to more than double the existing supply.
The tenant industries for logistics centers over 5,000 pyeong (approx. 16,500 m²) are as follows:
Manufacturing: 24% (e.g., Hyundai Mobis, P&G Korea)
Fashion: 20% (mostly E-Land Retail)
3PL : 19%
Parcel Delivery: 14%
There are 240 industrial complexes in the Chungcheong region, home to major factories of conglomerates such as Samsung Electronics, LG Chem, and Hyundai Motor. Especially around Cheongju and Chungju, 84 additional industrial complexes are planned, which is expected to further increase logistics demand based on manufacturing.
Additionally, the Chungcheong region is a traditional parcel delivery hub, and demand for e-commerce fulfillment continues to grow. Recently, with the rise of logistics differentiation strategies such as fast delivery and guaranteed arrival, the value of fulfillment bases near hub terminals is increasing.

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