Gyeongsangnam-do Changwon-si Dudong is emerging as a central hub for advanced logistics industries through the Busanjinhae Free Economic Zone (BJFEZ), established to guarantee optimized economic activities as a forward base for international business.
In particular, the logistics industry, recognized as a future promising sector in offline markets with explosive growth potential and continuous development in shopping industries such as e-commerce, is gaining attention as a future growth industry rather than a disliked occupation.
On December 19 last year, Won Hee-ryong, Minister of Land, Infrastructure and Transport, held the 'Ministry of Land, Infrastructure and Transport-Busan, Ulsan, Gyeongnam Regional Development Cooperation Meeting' at Nurimaru in Haeundae, Busan, together with Park Hyung-joon, Mayor of Busan, Kim Doo-gyeom, Mayor of Ulsan, and Park Wan-su, Governor of Gyeongnam. They announced the establishment of a national smart logistics platform to enable the Busan-Ulsan-Gyeongnam region to grow into a Northeast Asian logistics industry hub, linked with Gaduk New Airport and Busan-Jinhae New Port.
The smart logistics platform is a system encompassing core logistics facilities, hinterland complexes, logistics infrastructure, and land, sea, and air logistics linkage systems. The Ministry of Land is conducting research services to establish institutional foundations and specify implementation plans.
The Busanjinhae Free Economic Zone is being developed across Gangseo-gu, Busan, and Jinhae-gu, Changwon-si, Gyeongnam, covering a total area of 50.7㎢, approximately 18 times the size of Yeouido, to realize world-class logistics business.
The Busanjinhae Free Economic Zone Authority aims to create a world-class logistics hub by revitalizing new port hinterland complexes and expanding integrated logistics infrastructure, establishing industrial clusters such as automobiles, machinery, and advanced components to attract future growth industries, creating a residential environment for foreigners, easing regulations, and establishing an advanced management system to provide a global-level business environment.
Among these, the Dudong district is planned as the center of the logistics industry, covering approximately 1.68 million square meters (508,200 pyeong), specifically consisting of a 360,000㎡ logistics complex and a 450,000㎡ residential complex. It houses facilities such as Coupang’s cold and ambient temperature logistics centers, Market Kurly’s cold logistics center, LG Electronics’ integrated logistics center, and Hanyang Industrial Development logistics center.
The greatest feature of the Dudong district is its excellent metropolitan and arterial accessibility. It is adjacent to National Routes 2 and 58, and the Namhae Expressway, covering the entire Yeongnam region’s logistics coverage. Additionally, Jinhae IC is about 2 km away, Busan New Port about 7 km away, with Gimhae International Airport nearby. Once Gaduk New Airport is completed, the area will be fully accessible by land, sea, and air, emerging as a center for advanced logistics.
Given its excellent accessibility to various locations, the Dudong district is ideal as a logistics hub. The new logistics center 'Dudong Hive Square,' equipped with both ambient and cold warehouses, has completed building permits, attracting attention from domestic and international distribution companies.
Located on the last remaining large-scale logistics center site within the Dudong district, most of the Busanjinhae Free Economic Zone is designated as a land transaction permission zone as a general industrial complex, restricting land transactions. However, the Dudong district is not subject to the general industrial complex law, allowing free land transactions, which is a significant advantage.
Moreover, recently, major logistics companies such as Market Kurly, Coupang Rocket Fresh, LG, and BGF Retail have entered the fresh delivery market within the Busanjinhae Free Economic Zone, making news about logistics centers equipped with cold storage even more noteworthy.
The Dudong Hive Square logistics center is being developed as a newly emerged '4th generation integrated logistics center' due to the growth of the online shopping market. Warehouse spaces have been enlarged to store and process large inventories quickly and cost-effectively. To match this, facilities optimized for efficient product loading and unloading with floor-by-floor docking capabilities have been applied. It will also provide ample parking space for 382 vehicles, about 170% of the legally required parking, and approximately 300 pyeong of dining and various convenience facilities for tenant employees.
Unlike existing logistics centers vulnerable to fire and prone to major accidents, the Dudong Hive Square applies strengthened latest fire safety regulations. It is designed with a dedicated fire truck circulation road surrounding the logistics center, allowing fire trucks to access from all four sides, demonstrating excellent fire safety features.
Its location closest to Busan New Port among logistics centers in the Yeongnam region is also noteworthy. Busan New Port has overwhelmingly higher cargo handling capacity compared to other ports, with a very large container throughput. Due to its role in regional trade and port linkage, it shows high national importance and growth rates.
Meanwhile, the Dudong Hive Square logistics center will be located in Dudong, Jinhae-gu, Changwon-si, Gyeongsangnam-do, within the Dudong district of the Busanjinhae Free Economic Zone. It will be developed on a site of 27,452㎡ with a total floor area of 140,811㎡, consisting of eight warehouse floors (one basement, seven above ground), designed for self-docking allowing cargo vehicles direct access to workspaces on all floors via ramps.
Dudong Hive Square is a subsidiary of 'The Synergy' group, which has been conducting approximately 4,000 units of multi-family housing and logistics center projects in Seoul, the metropolitan area, and major regions nationwide over the past two years. The group is currently selecting a construction company and attracting tenants for the new Dudong logistics center project and is reportedly considering selling the Dudong site to diversify its business.
An official stated, “We are currently promoting tenant attraction and sale through JLL Korea, receiving inquiries from individual investors aiming for rental income as well as from large distribution companies interested in purchasing entire facilities. Since it is located in the best location, we will do our best to establish it as the center of the logistics industry.”
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