Logistical Expansion
After signing a contract with Gimcheon in Aug., E-commerce Coupang (CEO, Kim Bum-suk) entered into an investment agreement with Gwangju Metropolitan City to build a logistics center.
Coupang recently announced that the company signed an agreement to invest 60 billion won (US$50 million) to build a logistics center stretching 53,531m2 in the JinGok Industrial Complex in Gwangju City. The construction project is scheduled to be completed by 2017. Once completed, it will be Coupang’s logistics and delivery center for the southern part of the country that oversees storing, packaging, inspection, and managing new personnel for delivery in that region.
Coupang has been continually in consultation with Gwangju City based on an investment proposal submitted by the municipal government since July. The spokesperson for Coupang said that active persuasion on the part of the Gwangju City led the company to decide on its investment decision.
In fact, Coupang signed a 100 billion won (US$85 million) investment agreement with Gimcheon last Aug. to build a logistics center. Accordingly, the 4 million m2 center is expected to be constructed in in the GimCheon 1 industrial complex, which will also create jobs for 2,000 people.
The spokesperson for Coupang said the investment agreement with Gwangju City is comprised of two contracts which together are worth 160 billion won (US$135 million). The incorporation of the delivery system under the umbrella of a social commerce company represents a breakthrough innovation that Coupang introduced to local industry. As such, he said, Coupang expects to contribute to revitalization of the local economy and job creation. He also added that Coupang will continually consult local governments to establish local logistics centers around the country. In this way, the company believes that it can provide the convenience and prompt service that customers expect through the company’s delivery service called “Rocket Delivery.” Henry Low, vice president of Coupang, said, “With the signing of the investment contract with Gwangju City, Coupang will help vitalize the local economy,” adding, “Through various forms of investment, Coupang plans to contribute to the revitalization of local economy in the future.”