Coupang to open two new logistics centers in October

[Courtesy of Coupang Inc.]

South Korean e-commerce giant Coupang Inc. is set to open two new logistics centers in South Korea in October, as it accelerates its pledge to invest more than 3 trillion won ($2.2 billion) by 2027.

Coupang announced on Tuesday that it will begin operations of two new fulfillment centers, each located in Daejeon and Gwangju. The two centers are expected to directly employ over 3,300 workers.

In March, Coupang unveiled a plan to invest over 3 trillion won to build logistics facilities aimed at expanding next-day delivery nationwide by 2027. The company outlined nine regions for new centers, including two in North Gyeongsang Province and one in South Chungcheong Province.

The Cheonan FC in South Chungcheong Province began operations last month and plans to hire 500 people.

New facilities in Gimcheon, North Gyeongsang Province, and Ulsan are set to break ground in October, creating 500 and 400 jobs, respectively.

The Chilgok hub, with 400 employees, will begin operations this year, and the Jecheon FC, employing 500, will start construction in the first half of next year.

Constructions are currently underway for Busan‘s new FC, which is expected to employ 3,000 people, and also for the Icheon FC in Gyeonggi Province, which will hire 1,500.

Coupang emphasized that its logistics investment will create an additional 10,000 local jobs, increasing its regional workforce outside Seoul to over 65,000.

The company highlighted that more than 80 percent of its jobs are in non-Seoul areas, boosting regional economies, particularly in locations with declining or stagnant populations.

Coupang expects these new jobs to attract young people back from Seoul and the metropolitan area.

Over 20,000 of Coupang’s employees were aged 19-34 as of the first half of 2023 and 48 percent of logistics and delivery workers were women.

Coupang aims to expand next-day delivery nationwide by 2027.

The company has invested 6.2 trillion won in its logistics network, establishing over 100 facilities in 30 regions and expanding next-day delivery availability to 182 of 260 cities, counties, and districts (70 percent).

With the new investment, next-day delivery will be available in approximately 230 regions (over 88 percent) by 2027, covering more than 50 million of Korea’s 51.3 million people.

In regions experiencing population decline, the number of next-day delivery-eligible areas will increase to about 60 from the current 17 over the next three years.