Hanjin to Achieve 4.5 Trillion KRW in Sales by 2025

1.1 Trillion KRW Investment for Asia's Leading Logistics Company
The First Year of a New Leap This Year
President Nosamseok: "We Will Provide Differentiated Value with a Stronger Structure"

Nosamseok, President and CEO of Hanjin (left), and Chohyunmin, Executive Vice President in charge of Future Growth Strategy and Marketing, are seen answering questions.

[Asia Economy Reporter Yoo Hyun-seok] "We will achieve KRW 4.5 trillion in sales and KRW 200 billion in operating profit by 2025 to leap forward as Asia's leading smart solution logistics company."

Hanjin announced that it will invest KRW 1.1 trillion by 2025 to become Asia's leading smart solution logistics company. It also set a management goal to achieve sales of KRW 2.664 trillion this year, marking a new leap forward.

On the 28th, Hanjin CEO Noh Sam-seok made this announcement at a press conference held at Lotte Hotel in Sogong-dong, Jung-gu, Seoul, to open the metaverse 'Hanjin Logiverse Island.' At the conference, CEO Noh and Executive Vice President of Future Growth Strategy and Marketing Cho Hyun-min attended and presented the vision until 2025, the 80th anniversary of the company's founding, as well as strategies, marketing, and new business activities as a smart solution logistics company.

Hanjin plans to invest KRW 1.1 trillion by 2025, securing the investment funds through land sales and corporate bond issuance. The investment will be used to establish overseas subsidiaries in countries such as Thailand and Indonesia to expand the global network (KRW 150 billion), build an integrated distribution and logistics platform, and automate logistics processes (KRW 150 billion) to secure a foundation for future growth.

Along with this, the company plans to strengthen domestic and overseas businesses to boost performance growth. CEO Noh explained, "We are strengthening infrastructure investments, including the Daejeon Smart Mega Hub Terminal," and added, "If we target overseas business opportunities by traveling to the U.S. and Europe, we can achieve our sales goals."

He said, "Despite the impact of the COVID-19 pandemic and global supply chain disruptions, we have improved performance and strengthened core business competitiveness over the past three years," and added, "Based on a strong corporate structure, we will secure customer-centric growth momentum and devote all efforts to providing differentiated value and new digital experiences to customers."

Noh Sam-seok, President and CEO of Hanjin

To this end, Hanjin is shifting from providing functional services such as land transportation, cargo handling, shipping, and parcel delivery, which are traditional logistics infrastructures, to integrating digital technologies to meet customer needs. The company announced four strategies to evolve into a logistics solution that pioneers the global market: ▲strengthening global capability scalability ▲digital pivoting ▲maximizing customer value ▲practicing ESG (Environmental, Social, and Governance) management.

Hanjin plans to expand its overseas subsidiaries from 12 countries to 19 countries and increase global e-commerce volumes. It will also strengthen its logistics platform business and develop new data-driven businesses such as road information collection and sales.

Executive Vice President of Future Growth Strategy and Marketing Cho Hyun-min said regarding the possibility of mergers and acquisitions (M&A), "We are prepared for M&A not to increase quantity but to improve quality," adding, "Including M&A, we will seek growth opportunities and form partnerships where possible."

Johyunn Min, President of Future Growth Strategy and Marketing at Hyunjin.

On the same day, Hanjin also opened 'Hanjin Logiverse Island,' a futuristic virtual logistics space, the first of its kind in the domestic logistics industry.

Built on the metaverse platform 'Zepeto' under the leadership of Executive Vice President Cho, 'Hanjin Logiverse Island' was created as an industry first. It features four themed zones inspired by Hanjin's vision of a futuristic logistics world: ▲future-oriented fulfillment center ▲parcel terminal ▲marine transport and container terminal ▲air and space transport.

Through Logiverse Island, Hanjin plans to strengthen communication with diverse customers, including the MZ generation (Millennials + Generation Z), and use it as a communication space for employees for internal training and briefings.

In addition, Hanjin developed a mobile game called 'Parcel King Island' that combines parcel delivery and logistics with gaming. In the second half of the year, it plans to release a short film based on parcel delivery, actively promoting 'Logitainment' marketing, which combines logistics and entertainment.

Executive Vice President Cho said, "Logitainment, which combines logistics and entertainment, reflects the various roles and functions of logistics deeply embedded in daily life," adding, "It is a form of marketing created to empathize and communicate about the countless impacts logistics has on everyday life, as well as a part of change and innovation."