Expansion of Dawn and Same-Day Delivery Areas
Plan to Create 1,450 New Jobs
Coupang is investing 193 billion KRW to build and operate a state-of-the-art smart logistics center equipped with artificial intelligence (AI) technology in Gimhae City, Gyeongnam Province. This investment will expand same-day and dawn delivery benefits to small cities and island/mountainous areas in Gyeongnam, including the Busan-Ulsan-Gyeongnam (BooUlGyeong) region, in the mid to long term. It is also expected to create over 1,400 jobs, contributing to the revitalization of the local economy.
(From left) Hong Yong-jun, CEO of Coupang Logistics Service, Park Wan-su, Governor of Gyeongnam Province, and Hong Tae-yong, Mayor of Gimhae, are posing for a commemorative photo after signing a large-scale investment agreement for the establishment of the Gimhae Smart Logistics Center. Photo by Coupang
Expansion of Dawn and Same-Day Delivery to the Southernmost Part of Gyeongnam
According to industry sources on the 27th, Coupang’s delivery subsidiary, Coupang Logistics Service (CLS), signed an investment agreement worth 193 billion KRW with Gyeongsangnam-do Province and Gimhae City the day before, announcing plans to establish the Coupang Gimhae Smart Logistics Center.
The Gimhae Smart Logistics Center, to be built in the Andong area of Gimhae City, Gyeongnam, will cover a total floor area of 122,314㎡ (approximately 37,000 pyeong) across one basement floor and eight above-ground floors. The center will provide a one-stop service from inventory management to final delivery. Based on AI technology, it will predict customer order demand and store products with high order volumes, enabling immediate delivery upon order. Coupang plans to first open the smart logistics center in the first half of this year with logistics facilities capable of dawn delivery for general products such as daily necessities. This year, cold storage and refrigeration facilities will be additionally established, enabling fresh food dawn delivery as early as next year.
With Coupang’s investment in the smart logistics center, the so-called 'Cusegwon' (areas eligible for Rocket Delivery) in Gyeongnam Province is expected to expand significantly. Coupang already operates fresh logistics centers in Changwon and Gimhae, providing dawn and same-day delivery in major cities. This new investment will enable dawn delivery to the southernmost regions of the Korean Peninsula, including Sacheon, Geoje, and Tongyeong, as well as island and mountainous areas within Gyeongnam.
Coupang stated, "We decided on this investment to meet the fast delivery demands of customers in the Gyeongnam region," adding, "In several areas where residents have faced difficulties shopping due to the absence of nearby grocery stores, this investment is expected to dramatically improve living conditions by providing free dawn delivery services."
1,450 New Jobs and Expansion of Sales Channels for Small Businesses
Coupang plans to create approximately 1,450 jobs by next year through the establishment of the smart logistics center. Previously, Coupang invested in large logistics centers in the Changwon, Gimhae, and Yangsan areas of Gyeongnam, currently employing 6,200 people through investments in large logistics centers and forward bases for delivery. Once the Gimhae smart logistics center is operational, Coupang’s job creation in Gyeongnam is expected to approach 8,000.
For example, the Changwon logistics center, located in an employment crisis area, directly hired over 1,400 people in 2021, accounting for more than 70% of the annual hires in the local Jinhae-gu district. The job benefits are expected to primarily target young people in their 20s and 30s. In the second half of last year, 51% of Coupang’s direct hires at logistics centers outside Seoul were young people, higher than the 40% in the metropolitan area.
Economic revitalization effects are also expected through the expansion of purchases of products from local small businesses. Coupang actively purchases products from local small business owners and agricultural and fishery producers, and supports their entry into Coupang’s open market, contributing to the expansion of sales channels for small and medium-sized enterprises and small business owners.
Hong Yongjun, CEO of CLS’s Management Support Division, said, "Coupang provides customers with the best shopping experience based on innovative logistics infrastructure," adding, "Through the Gimhae smart logistics center, we plan to continuously invest so that customers in Gyeongnam, including the BooUlGyeong region, can enjoy faster and more convenient services."
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