Busan City Supports Targeting Largest Export Markets... Recruiting Companies for Americas Logistics Network and Amazon Entry

Expansion of Local Logistics Centers in the Americas, from 3 to 5
Support for Ocean Freight from Korea to US West Coast Ports
Relaxed Eligibility Criteria for Amazon.com Entry Support

Busan City is launching support projects targeting the Americas, its top export destination.

Busan City (Mayor Park Hyungjun) announced that it is recruiting companies to participate in the "Americas Export Logistics Network Support Project" and the "Amazon.com Entry Support Project" until March 27.

The Americas Export Logistics Network Support Project is designed to provide Busan SMEs, which have difficulty independently establishing logistics centers overseas, with opportunities to jointly use local warehouses in the Americas and to offer customized logistics services utilizing local logistics center infrastructure.

Participating companies can secure advance safety stock locally through warehouse storage services, allowing them to proactively respond to rising logistics costs. In addition, they can utilize local smart logistics services such as packaging, labeling, and inbound/outbound logistics according to customer orders.

In 2024, 13 Busan companies participated and achieved sales of $5.117 million (approximately KRW 7.5 billion) through logistics process and marketing support at local logistics warehouses.

This year, in order to reduce the export cost burden for companies amid export challenges and to enable more stable entry into the Americas market, the scope of support will be expanded to include ocean freight from Korea to West Coast ports of the United States.

Companies participating in the Amazon.com Entry Support Project will receive support for education, consulting, entry costs, and Amazon advertising expenses necessary for entering and selling on Amazon.com, the world's largest online marketplace.

Amazon.com holds more than 40% market share in the US e-commerce market. Since 2018, local export companies have successfully entered Amazon through this support project, and last year, 40 companies achieved record sales of approximately $2.89 million on Amazon.com.

From this year, the eligibility criteria for the Amazon.com Entry Support Project will be relaxed to include companies with annual exports of $30 million or less, providing more promising export companies with opportunities to strengthen their digital marketing capabilities.

Companies that are both entering Amazon.com and exporting locally can expect synergy effects by participating in the Americas Export Logistics Network Support Project, which supports local warehouses and logistics services.

This year, the logistics warehouses for the Americas Export Logistics Network Support Project will be expanded from the existing three locations (LA, Atlanta, Seattle) to five, including San Diego and Long Beach, and will be used as joint city logistics warehouses.

Additionally, the project will support all logistics services from inbound to outbound, including ocean freight from Korea to West Coast ports, import customs clearance, and local warehouse storage and handling fees.

Companies utilizing Amazon.com can also use the Amazon fulfillment service, and certification costs required for entry into the US market will be supported.

Companies wishing to participate in either project can apply through the city's integrated overseas marketing system by March 27.

The Americas Export Logistics Network Support Project plans to recruit approximately 15 companies, and the Amazon.com Entry Support Project around 40 companies.

To pioneer sales channels in the Americas, Busan City operates an overseas trade office in LA, USA, and is promoting export support projects utilizing global cooperation networks, including participation in major exhibitions in the Americas, matching local buyers with Busan export companies, online video consultations, and support for entry into on/offline markets.

Kim Bongcheol, Director of the Digital Economy Bureau of Busan City, stated, "Although there are concerns such as recent geopolitical risks and the Trump administration's tariff policies, we hope that local companies will successfully enter the Americas market by leveraging digital marketing and a stable local logistics supply base," adding, "We will continue our efforts to overcome trade barriers and become a global trade hub city."