LGU+ Enters 37 Trillion Middle Mile Freight Market... Aiming for 150 Billion KRW in Sales

One-Stop Cargo DX Platform 'Hwageul Itgo' Launched

LG Uplus has launched 'Hwamul Itgo,' a platform that provides a one-stop service for the entire process required for cargo transportation. Through this, it aims to lead the digital transformation (DX) of the 37 trillion KRW cargo transportation brokerage market. The company plans to quickly establish itself as a market leader and achieve sales of 150 billion KRW within three years.

On the 16th, LG Uplus announced the launch of Hwamul Itgo, a cargo transportation brokerage DX platform that matches freight forwarders who receive cargo transportation requests and dispatch vehicles with truck owners who transport the cargo.

LG Uplus will launch 'Hwamul Itgo,' a cargo transportation brokerage DX platform supporting smart dispatch, real-time monitoring, cargo truck-exclusive navigation, and fast settlement, this month. Brokerage companies and truck owner customers can achieve swift and accurate delivery and efficient operations through Hwamul Itgo.
[Photo by LG Uplus]

The platform targets the middle mile logistics market, which is the intermediate stage of transporting goods from sellers or factories to logistics centers and is a business-to-business (B2B) area. According to Statistics Korea, the middle mile market was estimated to be worth 37 trillion KRW in 2020.

The middle mile market is often called "the last land of analog" because it is inefficiently operated through phone orders and handwritten waybills. Frequent issues include dispatch errors and delayed settlements. LG Uplus has focused on this demand. Based on its B2B DX capabilities and know-how, the company plans to introduce a service in the analog middle mile cargo market that offers reliability and convenience comparable to parcel delivery services.

Hwamul Itgo provides all necessary services for cargo brokerage within the platform in a one-stop manner, from cargo reception to dispatch, transportation, settlement, and client management. Key features include ▲smart dispatch management and real-time transportation monitoring service ▲fast settlement and convenient performance management system ▲optimal cargo dispatch system ▲cargo truck dedicated navigation, among others.

Four Major Features of Hwamul Itgo
[Photo by LG Uplus]

Before launching the service, LG Uplus conducted pilot services by visiting medium and large freight forwarders and transportation companies. Choi Seung-rak, chairman of Gangdong Logistics, who participated in the pilot, said, "Previously, dispatch managers and truck owners communicated by phone every time, and after the trip, results were organized in Excel, but using the platform significantly reduced workload and time required."

Recently, IT companies such as Kakao Mobility and T Map Mobility have been entering the middle mile cargo brokerage market one after another. However, there is still no leading player. To quickly capture the market, LG Uplus has partnered with traditional leaders in the middle mile market. It has formed partnerships with Gangdong Logistics, which has secured about 700 transportation vehicles, and the digital logistics startup Diver. For safe and fast settlements, it has teamed up with Shinhan Card to introduce a dedicated payment card for cargo transportation fees. Additionally, to increase platform usage, no separate fees will be charged during the initial launch phase. Based on this, LG Uplus aims to expand market share and achieve sales exceeding 150 billion KRW within three years.

Im Jang-hyuk, head of LG Uplus’s Enterprise New Business Group (Executive Vice President), said, "Through Hwamul Itgo, a cargo information portal service and a powerful DX platform, we will quickly create a mutually beneficial cargo market ecosystem and lead logistics innovation in the analog market."

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