Yujin Group Acquires Smart Logistics Equipment Manufacturer Taeseong System

Expansion of Smart Logistics Business Due to Increasing Demand for Micro Fulfillment Centers

[Asia Economy Reporter Kim Jong-hwa] Eugene Group is strengthening its logistics business through the acquisition of a smart logistics equipment company. With the recent expansion of the quick commerce market, demand for micro fulfillment centers, which are urban warehouses, is increasing, and the group plans to expand its business area by acquiring specialized companies with related technologies.

Eugene Logistics, a logistics company affiliated with Eugene Group, announced on the 5th that it will acquire Taeseong System, which possesses smart logistics equipment manufacturing technology.

Founded in 2016, Taeseong System is a specialized company that designs and manufactures logistics automation equipment such as high-speed cargo sorting equipment and control systems. With product developments including wheel sorters, flap sorters, and vertical tilt tray sorters that can innovate logistics efficiency and optimize processes, the company has achieved an average annual sales growth of 88% over the past three years, securing overwhelming competitiveness in the automated logistics equipment market.

Its major domestic clients include Coupang and CJ Logistics, and it also conducts business with e-commerce companies in China, the United States, South America, Southeast Asia, and Europe.

Yoo Kyung-sun, chairman of Eugene Group, stated in the New Year's address earlier this year, "To secure sustainable future competitiveness, the company's direction must lead change and innovation focused on distribution and logistics," adding, "In the existing manufacturing sector, we will pursue diversity and depth of items and integrate new technologies to build world-class smart factories."

The group's parent company, Eugene Corporation, plans to raise a total of 55 billion KRW in acquisition funds through a capital increase in its 100% subsidiary Eugene Logistics and Eugene PE. Eugene Group intends to promptly dispatch management to complete the acquisition and also consider additional investments to create synergy.

A Eugene Group official said, "With the rapid growth of the e-commerce market, demand for fast and efficient logistics is expected to increase," adding, "Through the acquisition of Taeseong System, which has outstanding technology in the domestic smart logistics market, we will proactively respond to the future logistics market and continuously seek business expansion."