Investment of Approximately 220 Billion KRW for Logistics Center Construction
Utilized as Export Bases to Mongolia, Malaysia, and More
BGF Retail, the operator of CU, is holding a groundbreaking ceremony for the largest logistics center in the domestic convenience store industry in Busan.
According to BGF Retail on the 3rd, the new Busan logistics center is scheduled to be constructed on a 47,000㎡ (approximately 14,000 pyeong) site within the Busan International Industrial Logistics City in Gurang-dong, Gangseo-gu, Busan, with a total floor area of 120,000㎡ (approximately 38,000 pyeong), aiming to be operational in the second half of 2026. This is about twice the size of the existing BGF Retail Central Logistics Center.
The groundbreaking ceremony will be attended by about 100 people, including BGF Group officials such as Hong Seok-jo, Chairman of BGF, Hong Jeong-guk, Vice Chairman and CEO of BGF, Min Seung-bae, CEO of BGF Retail, Jang Young-cheol, Head of Product and Overseas Business Division, as well as Park Hyung-joon, Mayor of Busan, Kim Ki-young, Head of Busan-Jinhae Free Economic Zone Authority, and Kim Hyung-chan, Head of Gangseo-gu, Busan.
BGF Retail has made an investment of approximately 220 billion KRW for the construction of this logistics center. This is the largest investment in logistics business to date, aiming to establish a differentiated convenience store logistics system through integration, enlargement, and automation of logistics as the number of stores increases annually.
In particular, by utilizing the state-of-the-art automated facilities of the Busan logistics center, BGF Retail plans to efficiently reorganize the delivery system in the Yeongnam region and simultaneously use it as an export forward base to swiftly transport goods and materials to future overseas expansion countries such as Mongolia, Malaysia, and Kazakhstan.
The logistics center is designed with separate facilities for ambient and cold storage logistics. An automated system is applied from product receipt to shipment, and various advanced SCM technologies are introduced in product replenishment and sorting operations to enhance the speed and accuracy of logistics work.
Additionally, in line with the government's eco-friendly energy policy, a solar power generation facility capable of producing up to 3,900 megawatt-hours of electricity annually will be installed at the Busan logistics center.
BGF Retail and the Busan Metropolitan City signed a business agreement in 2021 for the construction of the Busan logistics center, agreeing to promote ▲job creation through the logistics center construction ▲discovery of regional industry-linked cooperative projects ▲development of win-win cooperation models with local small business owners. The operation of this logistics center is expected to create about 800 jobs.
Chairman Hong Seok-jo said, “The Busan logistics center will become a symbolic landmark that enhances CU’s domestic and international logistics competitiveness and leads future innovation in the domestic convenience store industry. We will actively support it so that CU can serve as a stepping stone to expand widely on the global stage and that Busan can become a new driving force as a global hub city.”
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