MOU Signing at City Hall on the 22nd at 3:10 PM
Future Auto Parts Company 'SB Jeonggong' Also Signs MOU
On the 22nd at 3:10 PM, Busan City will sign a memorandum of understanding (MOU) for investment with a total of two companies, including Lotte Shopping, at the 7th-floor video conference room of City Hall.
Attending the investment agreement signing ceremony will be Mayor Park Hyung-jun, Lotte Shopping's CEO Kim Sang-hyun and company executives, and Kim Ki-young, head of the Busan-Jinhae Free Economic Zone Authority.
Lotte Shopping plans to build a new logistics center on a site of approximately 12,000 pyeong within the International Industrial Logistics City in Gangseo-gu, Busan, aiming to start operations in the second half of 2025.
To this end, they will invest a total of 200 billion KRW from 2023 to 2025 and plan to newly hire about 2,000 personnel, including production management, on-site workers, and delivery drivers.
Lotte Shopping intends to establish an automated logistics center dedicated to online groceries, actively cooperating to support local small business owners in developing digital sales channels and expanding the entry of locally produced products into Lotte stores for mutual growth.
This investment is aimed at laying the groundwork for expanding the online business after Lotte Shopping signed a partnership agreement last year with the UK online supermarket company Ocado. Accordingly, Lotte Shopping plans to invest 1 trillion KRW by 2030, with Busan confirmed as the site for the first automated logistics center.
The International Industrial Logistics City where Lotte Shopping will invest is part of the Busan-Jinhae Free Economic Zone adjacent to the Busan New Port, boasting the nation's best logistics transportation network.
It is a logistics cluster established through strategic corporate attraction activities by Busan City and the Busan-Jinhae Free Economic Zone Authority. Last year, global logistics companies such as Coupang, LX International, and BGF Retail completed their move-in procedures, and with the confirmation of Lotte Shopping's investment, it has proven to be the nation's top logistics location.
Kim Sang-hyun, CEO of Lotte Shopping, said, “We are very pleased to take the first step toward Lotte’s goal of becoming ‘Korea’s No.1 online grocery’ together with Busan City. We will provide citizens in Busan and Gyeongnam regions with a new shopping experience through innovative systems and strive for regional economic development.”
Mayor Park Hyung-jun stated, “As you know, Lotte has an inseparable relationship with Busan. I thank CEO Kim Sang-hyun for deciding on a large-scale investment in Busan, and the city will provide policy support so that Lotte can become a global leading company through various customized corporate support measures.”
He added, “To advance Busan as a global city favorable for business, hosting the 2030 Busan World Expo will be a very important opportunity,” and requested, “We ask for Lotte Shopping’s greater interest and active support for the Expo bid.”
Additionally, the city will sign an investment memorandum of understanding with SB Jeonggong, a future car parts manufacturing company, through written agreement. SB Jeonggong plans to invest a total of 19.7 billion KRW by 2024 to establish an automobile parts factory in the International Industrial Logistics City in Gangseo-gu and hire 35 new employees.
Through this agreement, it is expected to participate in the Busan-type job cluster, secure new growth engines through technological cooperation among future car companies, and contribute to the creation of new industry jobs.
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