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Logistics Tenant Profile #12 – Daegu & Gyeongbuk: The final Piece of the Logistics Puzzle

Carter Kim • 21/12/2023

Daegu, Chilgok, and Gyeongsan account for about 81% of logistics center supply in the Daegu–Gyeongbuk region, benefiting from major expressways and proximity to consumption hubs. These areas host key logistics bases for e-commerce and retail companies like Coupang and BGF Logis. Manufacturing-focused logistics centers are located in Gimcheon and Pohang, serving companies such as POSCO and Hyundai Mobis.

Of the planned 263,000 py of new logistics space, only 60% has started construction, with actual supply by 2025 expected to reach around 160,000 py. Distribution and e-commerce centers are concentrated near Daegu, while manufacturing logistics hubs are planned near Ulsan and Pohang.

For logistics centers over 5,000 py, e-commerce occupies 54% of the area, followed by 3PL (16%) and manufacturing (10%). Coupang holds the largest footprint across all sectors. Key 3PL operators include CJ Logistics, POSRO, and Samil, while Hyundai Mobis, SELC, and LG Electronics operate manufacturing logistics centers.

Post-COVID, ultra-low-cost cross-border platforms like AliExpress and Temu have reshaped consumer trends. Korean companies such as Coupang and G-market are also expanding overseas direct purchase services and considering logistics infrastructure development.

In 2023, Korea’s cross-border e-commerce market grew 22% year-over-year to KRW 6.5 trillion, driven by Chinese platform expansion. As international delivery strengthens, the CBE (Cross-Border E-commerce) logistics market is growing, with Korean logistics firms investing in global distribution centers and anticipating increased demand near airports and ports.

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