A Large-Scale Coupang Logistics Base to Be Established in Gwangju Pyeongdong Industrial Complex

Expecting 2,000 New Jobs

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City is partnering with Coupang Inc., one of Korea's leading e-commerce companies and one of the top four employers, to create win-win jobs in Gwangju.

According to Gwangju City on the 4th, Coupang recently confirmed its entry into Gwangju and has begun full-scale procedures to build a large-scale advanced logistics base in the Pyeongdong 3rd Industrial Complex.

Over two phases, a nationwide logistics hub covering 174,326㎡ (52,400 pyeong) will be established in the Honam region, with an investment amount of 224 billion KRW and job creation reaching 2,000 positions.

First, in phase one, a fresh food storage logistics center (frozen and refrigerated warehouse) of 14,637㎡ (4,400 pyeong) is under construction.

Construction began last month, and full-scale operations will start in the second half of next year. The investment amount for this phase is 24 billion KRW, and 400 new jobs are expected to be created.

Coupang will also build an advanced logistics center (ambient temperature storage) with a total floor area of 159,689㎡ (48,000 pyeong).

To this end, the industrial complex move-in and sales contract was completed on the 31st of last month, and full-scale construction will begin in the first half of 2023, aiming for completion in the first half of 2023.

The investment amount for this phase is 200 billion KRW, with job creation expected to reach 1,600 positions.

▲ Creation of 2,000 new jobs... Gwangju Win-Win Job New Deal MOU

Coupang plans to create more than 2,000 new jobs through this investment.

This represents the largest employment scale among Gwangju City's investment attraction efforts over the past 20 years, with estimated annual labor costs exceeding 70 billion KRW.

In this regard, Gwangju Mayor Lee Yong-seop and CEO Park Dae-jun signed a business agreement for the 'Gwangju Win-Win Job New Deal' at the Gwangju City Hall Business Room this morning to revitalize the local economy and ensure continuous job creation.

Coupang has committed to prioritizing the employment of local residents in operating the Gwangju advanced logistics base, contributing to local job creation, and striving to realize a 'stable working environment' and 'sustainable employment' for workers.

Gwangju City also promised to actively provide administrative services necessary for the construction and operation of the Coupang logistics base and to offer investment incentives such as tax reductions and subsidies in accordance with relevant laws and ordinances.

Additionally, Gwangju City and Coupang agreed to cooperate jointly for the 'co-growth with local small and medium-sized enterprises and small business owners' and to work together to revitalize the local economy and realize win-win job creation.

Mayor Lee Yong-seop said, "Thanks to the persistent efforts of our staff, the Gwangju Win-Win Job project in the service sector has finally been realized, which is very meaningful," adding, "Coupang's entry into Gwangju is the best gift that brings hope to citizens exhausted by COVID-19."

He continued, "I hope Coupang will greatly contribute to revitalizing the local economy and creating jobs by realizing stable working environments, sustainable employment, and the value of co-growth with small and medium-sized enterprises and small business owners here in Gwangju."

CEO Park Dae-jun said, "We will work harder to become a model of mutual growth with the local community through local economic revitalization and job creation," and added, "Coupang will continue to invest to create even more amazing customer experiences using its nationwide logistics network and make these experiences a natural part of everyday life for customers."

Meanwhile, Coupang has recently emerged as one of the 'top four employers' following Samsung Electronics, Hyundai Motor Company, and LG Electronics.

Due to the increase in non-face-to-face consumption amid the COVID-19 pandemic in the first half of this year, delivery demand surged, resulting in the creation of more new jobs than the number of jobs cut by the top 500 companies, drawing significant social attention.

▲ Coupang unveils AI-based future logistics center model

Coupang plans to introduce a model of a future logistics center optimized from product management to delivery routes by applying cutting-edge logistics technology and systems using artificial intelligence and big data in Gwangju.

The plan aims to reduce workers' labor burdens while increasing efficiency.

In particular, local small and medium-sized enterprises in Gwangju have high expectations for business sales growth and local economic revitalization as stable nationwide sales channels are secured through Coupang.

This logistics base construction is the fruition of an investment attraction agreement between Gwangju City and Coupang signed in September 2015 after five years.

Initially, a logistics center worth 60 billion KRW was planned to be built in the Jingok Industrial Complex, but the plan was changed to the Pyeongdong 3rd Industrial Complex this time, increasing the investment scale to 224 billion KRW, more than tripling it, enabling large-scale win-win job creation.