"Abolishing Early Morning Delivery Would Cause 54 Trillion Won in Annual Losses... Small Businesses Also Hit"

Korean Society of Logistics Releases Report
"Early Morning Delivery Shows Clear Job Creation Effect"

It has been predicted that if early morning delivery and seven-day-a-week delivery services are suspended, the e-commerce and parcel delivery industries could face annual losses of approximately 54 trillion won.

On November 7, the Korean Society of Logistics, a domestic logistics industry association, released a report titled "A Study on the Ripple Effects of Early Morning Delivery and Seven-Day Delivery." The report claimed, "If early morning delivery and seven-day-a-week delivery are halted, resulting in a roughly 40% decrease in parcel delivery orders, annual losses would reach 54.3 trillion won."

Specifically, e-commerce companies such as Coupang are expected to suffer a revenue loss of 33.2 trillion won, while small business owners are projected to see their sales decrease by 18.3 trillion won. The parcel delivery industry is also expected to incur losses of around 2.8 trillion won.

Image of a delivery vehicle. The photo is not related to any specific expression in the article. Photo by Yonhap News Agency

The association's report also analyzed the ripple effects of domestic early morning and seven-day-a-week delivery services on the overall economy. The final demand for these services was 1.54 trillion won, with induced production amounting to 2.72 trillion won. The induced value-added effect was 1.25 trillion won, and induced imports reached 300 billion won. This results in a total economic impact of 5.8 trillion won. In addition, it led to the creation of 12,000 jobs and induced employment for 7,000 people.

The report stated, "The early morning delivery market grew from 400 billion won in 2015 to 11.8 trillion won in 2024, demonstrating a clear effect on job creation. It also had a positive impact on easing urban traffic congestion, improving air quality, and enhancing the urban environment."

It further evaluated, "The services expanded sales channels for small business owners and made it possible to sell products that would otherwise be difficult to sell without fast delivery."

The report concluded, "If regulations are imposed on early morning and seven-day-a-week delivery, the quality, efficiency, and competitiveness of domestic logistics services will all decline. It is necessary to allow these services under managed conditions that ensure labor compensation, guaranteed rest days, and safe working conditions."

Meanwhile, on October 22, the National Courier Union under the Korean Confederation of Trade Unions argued at a meeting of the "Parcel Delivery Social Dialogue Body," launched under the leadership of the Democratic Party of Korea, that early morning delivery services should be prohibited from midnight to 5 a.m. This measure is intended to prevent overwork.