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Logistics Tenant Profile #4 – Hwaseong: The Western Frontier Logistics Rush

Carter Kim • 31/03/2023

Dongtan accounts for only 8% of Hwaseong’s land area but is home to 43% of its population and concentrates approximately 73% of the city’s logistics center space. With excellent transportation access via the Gyeongbu Expressway and the 2nd Ring Expressway, and rapid population growth easing labor shortages, Dongtan has become a highly preferred fulfillment hub for e-commerce companies such as Coupang and G-market. However, due to limited development land, future logistics supply is expected to expand westward.

An analysis of logistics centers over 5,000 py shows that 3PL operators account for 47.9%, led by CJ Logistics. E-commerce represents 29.9%, with G-market occupying about 54% of that space, while fashion accounts for 12.1%.

Historically, logistics facilities were primarily used for manufacturing storage, bonded warehouses, and general distribution. However, with the growth of the retail market and the rapid expansion of e-commerce, fulfillment centers have become increasingly prominent. As each type—storage warehouse, distribution center, and fulfillment center—has different requirements in terms of location, infrastructure, and rental costs, understanding their distinct characteristics is essential.

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