Price Increase for Corporate and Individual Customer Parcel Delivery Services

In mid-last month, members of the National Courier Workers' Union set up a tent near an apartment complex in Godeok-dong, Gangdong-gu, Seoul, where delivery vehicle access within the complex was restricted, urging for a resolution to delivery issues. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Choi Dae-yeol] Major courier companies have raised parcel delivery prices for individual customers following increases for corporate clients.

According to the industry on the 2nd, Hanjin raised the parcel delivery price for individual customers from 4,000 KRW to 6,000 KRW for small parcels (weight under 5 kg, total length, width, and height under 100 cm) starting from the 19th of last month, an increase of 2,000 KRW. For extra small parcels (3 kg, under 80 cm), the price increased from 4,000 KRW to 5,000 KRW; for medium parcels (15 kg, under 120 cm), from 5,000 KRW to 6,000 KRW; and for large parcels (20 kg, under 160 cm), from 6,000 KRW to 7,000 KRW, each rising by 1,000 KRW.

Based on the same delivery zone, the previous parcel delivery fees ranging from 4,000 to 6,000 KRW have increased to 5,000 to 7,000 KRW. Generally, small parcels account for more than 80% of the volume handled by courier companies. Lotte Global Logistics raised individual parcel delivery fees by 1,000 KRW each for small (5 kg, under 110 cm), medium (15 kg, under 130 cm), and large (25 kg, under 160 cm) parcels starting from March 15. CJ Logistics is reported to have no immediate plans to raise individual parcel prices, which currently stand at 6,000 KRW for small parcels.

Earlier, Lotte Global Logistics raised corporate parcel rates by 150 KRW for small parcels from mid-March, and CJ Logistics increased theirs by 250 KRW from April. Hanjin established a guideline earlier this year not to enter into new contracts or renewals with corporate clients below 1,800 KRW (small parcel standard).

The three major companies, which hold over 70% of the domestic parcel delivery market share, have consecutively raised prices due to increased costs from implementing measures to prevent overwork among delivery workers, such as adding more personnel for sorting tasks and expanding automation equipment.

This content was produced with the assistance of AI translation services.