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Coupang Expands 'Kusegwon'... Invests 55 Billion KRW to Break Ground on First Sub-Hub in Ulsan

Constructed on approximately 5,300 pyeong in Ulju-gun, Ulsan
Scheduled to operate from 2026
"Directly employing over 400 people... Boosting rocket delivery"

Coupang is establishing a sub-hub in Ulsan Metropolitan City to expand the Rocket Delivery coverage area in the southeastern region and plans to start operations from 2026. Coupang expects that by building the sub-hub, it will increase the areas eligible for Rocket Delivery while revitalizing the local economy.


On the morning of the 15th, Coupang announced that it held a groundbreaking ceremony for the 'Coupang Ulsan Sub-Hub' in Onyang-eup, Ulju-gun, Ulsan. About 100 guests, including Lee Soon-geol, the governor of Ulju-gun, attended the event.


Coupang Expands 'Kusegwon'... Invests 55 Billion KRW to Break Ground on First Sub-Hub in Ulsan Coupang Ulsan Sub-Hub bird's-eye view.
[Image provided by Coupang]

The Coupang Ulsan Sub-Hub, whose construction began on this day, is the first logistics facility Coupang is building in Ulsan. The sub-hub is an intermediate logistics facility that sends products from the logistics center to the delivery center and is operated by Coupang's delivery subsidiary, Coupang Logistics Service (CLS). With an investment of approximately 55 billion KRW, it will be built with a total floor area of about 5,300 pyeong (approximately 17,500 square meters) and plans to directly employ around 400 people. The goal is to complete construction by November next year and start operations in the first half of 2026.


The delivery coverage area for the Coupang Ulsan Sub-Hub includes Ulsan City, Busan Metropolitan City (Gijang-gun, Haeundae-gu), and Pohang City. Coupang is promoting the expansion of the 'Kusegwon' (Rocket Delivery coverage area) targeting 50 million people nationwide by 2027, and the Ulsan Sub-Hub is expected to become a key facility for expanding Rocket Delivery coverage in the southeastern region.


Coupang explains that operating the sub-hub will also have a positive impact on the Ulsan local economy. First, the operation of the sub-hub will provide jobs for young people. Additionally, by expanding the Rocket Delivery coverage area, it will enhance convenience and help local residents settle down. In particular, it is expected to contribute to increasing the settlement rate of residents by providing Rocket Delivery services to areas where large-scale population inflows are anticipated, such as the large complex new towns being promoted in the southern part of Ulsan. It is also expected to have an economic revitalization effect as various small and medium-sized manufacturers in areas adjacent to Ulsan City will find it easier to sell their products nationwide through Coupang.


Seo Beom-su, a member of the People Power Party representing Ulju-gun, Ulsan, said in a congratulatory video, "I hope the Ulsan Sub-Hub being built this time will serve as a major logistics network in the Yeongnam region," adding, "Furthermore, I believe it will contribute to revitalizing the local economy by creating new jobs, providing quality employment opportunities for young people, and fostering coexistence with small business owners."


Hong Yong-jun, CEO of CLS, said, "If the Ulsan Sub-Hub operates successfully, small and medium-sized merchants in the Yeongnam region will be able to reduce logistics costs, expand sales channels nationwide, and grow even more significantly alongside Rocket Delivery."


Meanwhile, Coupang announced earlier this year its plan to invest about 30 trillion KRW by 2026 to make Rocket Delivery available nationwide. To this end, following the recent completion ceremonies of the Nam Daejeon Fresh Fulfillment Center and the Gwangju Advanced Logistics Center in Gwangju Metropolitan City, Coupang is expanding logistics infrastructure nationwide, including the groundbreaking of the Ulsan Sub-Hub. In addition, Coupang plans to build additional logistics infrastructure in nine regions nationwide, including Daejeon, Gwangju, and Gyeongbuk Kimcheon, Chilgok, and Ulsan, directly employing more than 10,000 people.


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