Hanjin to expand self-clearance facility at Incheon Airport

[Courtesy of Hanjin]

Hanjin announced on Monday that it will invest 10 billion won ($7.25 million) to expand its self-clearance facility at Incheon Airport Global Distribution Center (GDC). The move is aimed at meeting the increasing demand for overseas direct purchases by Korean consumers.

Hanjin received approval for the expansion plan of the self-clearance facility at Incheon Airport GDC from Incheon Airport Customs Headquarters on April 3rd, 2024, and construction began two days later.

Hanjin aims to double the monthly processing capacity of the self-clearance facility from the current 1.1 million boxes to 2.2 million boxes, with the goal of handling more than 26 percent of the total domestic air cargo volume of 8.4 million units per month.

Despite expanding the self-clearance facility at Incheon Airport GDC once in 2022 after its opening in 2020, Hanjin deemed it insufficient due to the rapid increase in direct purchases.

The volume of overseas direct purchases surged as Chinese direct purchase platforms such as AliExpress and Temu see a significant increase in Korean users, leading to a sharp increase in volume compared to the customs clearance capacity. The volume of overseas direct purchases increased from 96 million units worth 6.2 trillion won in 2022 to over 100 million units in 2023.

In terms of Korean air customs clearance facilities, the clearance rate of cargo handled by Incheon Airport Customs and the four courier companies, including Hanjin, is almost at 90 percent.

Hanjin plans to complete preparations by the second half of 2024 and officially begin operating the expanded facility by the end of the year.