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
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
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
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.