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Promising Investment Opportunities Logistics 2009 Final

Promising Investment Opportunities Logistics 2009 Final

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Promising Investment Opportunities.
Overview of Korea's Industries - Logistics 2009
Invest KOREA
Published in December2009
Promising Investment Opportunities.
Overview of Korea's Industries - Logistics 2009
Invest KOREA
Published in December2009

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Published by: Republic of Korea (Korea.net) on Feb 23, 2010
Copyright:Attribution Non-commercial


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Overview of Korea’s Industries
South Korea is located in Northeast Asia between China and Japan.This location gives South Korea certain geo-economic advantages. South Korea is well equipped with logisticsinfrastructure which includes airports, seaports, multi-modal cargo terminals, and logistics complexes.
Korea’s Logistics Industry
Well-developed Logistics Infrastructure and Network
Rapidly Growing Logistics Market and its Potential
Business Opportunities
FDI in Korea’s Logistics Industry
Case Study of FDI in Korea
Relevant Organizations
Korea's Logistics Industry
    K   o   r   e   a    ’   s    L   o   g    i   s   t    i   c   s    I   n    d   u   s   t   r   y
Asia's Share of Global Exports
(Unit: %)
1. Overview
As far as global corporations are concerned, building an efficient logisticssystem is the key to their competitiveness. South Korea is located in NortheastAsia between China, which has been growing not only as a major base formanufacturing, but also the world
s largest market, and Japan, which is stillsteadily increasing her economic weight. This location gives South Koreacertain geo-economic advantages.
South Korea is well equipped with logistics infrastructure which includesairports, seaports, multi-modal cargo terminals, and logistics complexes. Thecountry has also built up the world's best logistics information systems, therebyproviding speedy, efficient customs clearance services. Global corporations canutilize South Korea's airports and seaports to rapidly and frequently connect to agreat number of cities within Northeast Asia to build the optimum supply chain.
Central Location and Emerging Logistics Market
Northeast Asia
s GDP accounted for only 12% of the world GDP in 2003, buthas increased to 20% in 2008, showing marked improvement in its economicweight.South Korea, located at the center of Northeast Asia, is conveniently connectedto many cities in the region as well as around the world. Incheon InternationalAirport, a hub airport of Northeast Asia, connects to 157 cities in 49 countries,with direct flights to 33 cities in China and 27 cities in Japan
(Oct. 2008).
BusanPort, a hub seaport in the region, lies on the world's main sea routes and is linkedto 45 ports in China, 60 ports in Japan, and 5 ports in Russia.Incheon Airport handles the world's second largest international air cargovolume, of which trans-shipment to third-party countries accounts for over 50percent. Busan Port handles a massive volume of transshipments to China andJapan. In 2008, Korea's logistics market was valued at KRW93 trillion, clearlymaking it a huge market.
Promising Investment Region for Logistics Activities
South Korea has massive logistics complexes in the hinterland areas of her majorinternational airports and ports. Such complexes constitute free trade zones,offering various benefits to foreign-invested companies. Furthermore, widerareas including free trade zones are operated as free economic zones to supportthe activities of foreign corporations.
South Korea's free trade zones, free economic zones, the Greater Seoul Area,which has a massive domestic demand for logistics, and the Chungcheong regionoffer the optimal logistics conditions within Northeast Asia and South Korea.Thus, South Korea's superior logistics infrastructures and services can beeffectively utilized to intensively handle import and export products in NortheastAsia or to undertake any logistics business involving sea and air transportation.The Korean logistics market - with its fast growing third-party logistics business- also constitutes a great attraction for global logistics companies wishing toenter Korea.
2.Well-developed Logistics Infrastructureand Network
It is of the utmost importance for global companies to build an efficientsupply chain, which can be built by closely linking sources of procurement,hubs of production and sales and consumers.However, although Northeast Asia has grown into a gigantic market of production and consumption and developed into one of the world's keyeconomic blocs, it is difficult to establish connectivity between the variouscountries, between distinct regions, or simply between individual Chineseprovinces and to build an efficient logistics system because of its widelydispersed nature. As a single logistics hub cannot possibly cover the wholeregion, multiple logistics hubs are required.Thus, in Northeast Asia, it is crucial to build an efficient logistics system inorder to secure corporate competitiveness. While Hong Kong, Taiwan andShenzhen supply the international logistics needs of southern China,Shanghai is emerging as an international logistics hub for the central region.South Korea offers frequent sea and air transport services to and fromnortheastern China, the western coastal areas of Japan, and the far easternregion of Russia. As such, South Korea functions as an international logisticshub of Northeast Asia. South Korea is connected to the world's factory,China, and the economic powerhouse of Japan, as well as to Taiwan andMongolia, giving her certain geo-economic advantages. South Korea alsooperates world-class airports and seaports, as well as a well-organizedhighway network, railroads, and inland logistics hub facilities, which whencombined constitute an excellent transportation infrastructure. Comparedwith any other area in Northeast Asia, South Korea can connect to numerouscities faster and more frequently, providing world-class logistics services.

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