S. Korean logistics firms vying for local expansion

SEOUL, Feb. 16 (Yonhap) -- South Korean logistics companies are competing to
expand their presence in the local logistics market on the back of government
support, industry sources said Tuesday.

Local small- and medium-sized logistics firms such as Hyundai Logistics Co. are
strengthening their third-party operations, or 3PL businesses, that allow
manufacturers to outsource parts of their supply chain management, the sources
said.
3PL operations help companies reduce their emission of carbon dioxide and allows
them to focus on their core businesses, so the government began covering 50
percent of 3PL-related consultation fees for these companies in January.
Hyundai Logistics has expanded its 3PL business division, while CJ GLS Corp.
plans to enhance its 3PL business in the fresh food and drug logistics markets.
DongbuExpress will expand its logistics center this year, following the opening
of its centers in Milyang, 386 kilometers south of Seoul, and Paju, to the north
of the capital, last year.
The local 3PL market is estimated at 10 trillion won and is expected to grow 10
percent annually.
As of the end of last year, the 3PL market accounted for 49.2 percent of the
overall local logistics market, falling behind that of developed countries such
as the United States and Japan, which make up 70 percent to 80 percent.
ksnam@yna.co.kr
(END)

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