Completion of the Living Logistics Complex Center in the Parking Lot of the 'Smart Green Logistics Regulatory Free Zone'

Special Parking Lot Act Application... Focus on Safety and Efficiency
Two Business Agreements Signed at Completion Ceremony

The nation's first living logistics complex center within a parking lot has been established.

The eco-friendly urban logistics pilot project using large cargo bicycles, promoted by New York City, USA since 2019
[Photo by Ministry of SMEs and Startups]

On the 5th, the Ministry of SMEs and Startups announced that it held a completion ceremony for the 'Smart Green Logistics Regulatory Free Zone' living logistics complex center in Yulgok-dong, Gimcheon-si, Gyeongsangbuk-do.

Since being designated as a regulatory free zone by the Ministry of SMEs and Startups in 2021, this special zone has been conducting a demonstration project that utilizes urban parking lots as logistics centers and provides eco-friendly living logistics delivery services using cargo electric bicycles as delivery means.

The living logistics complex center was built on a 2,531㎡ site at 1092 Yulgok-dong, Gimcheon-si, with over 6.3 billion KRW of local government funds in addition to government support. The completion ceremony was held about a year after construction began in July last year. The living logistics complex center is a new concept complex facility that integrates living logistics hub functions into a public parking lot, the first of its kind nationwide, applying special provisions of the 'Parking Lot Act,' and was designed focusing on safety, efficiency, and sustainability.

At the completion ceremony, two business agreements were signed. First, Rytle, a global leading company in the field of eco-friendly urban logistics cargo electric bicycles from Germany, along with special zone companies EcoBr and HL Mando, signed a 'Global Partnership Agreement for Joint New Product Development and Commercialization Cooperation.' Over the next five years, they aim to export 5,000 cargo electric bicycles, targeting major European customers such as Germany's postal service (DHL) and Amazon (UK European headquarters). Once regulatory adjustments are completed, they plan to actively target the domestic market as well.

Additionally, Gyeongbuk Province and Gimcheon City signed a public-private joint business agreement with special zone operators Coupang and PLG to promote the demonstration and activation of a living logistics platform utilizing urban parking lots. The global cargo electric bicycle market is expected to reach approximately 5.8 billion USD by 2027, growing rapidly at an average annual rate of 26%, representing a new industry. A Ministry of SMEs and Startups official explained, "To solve environmental pollution, traffic congestion, and traffic safety issues, cargo electric bicycles are being used to replace trucks in urban logistics." He added, "Especially in major advanced countries such as the United States and Europe, cargo electric bicycles, an eco-friendly delivery means, are being actively introduced as urban short-distance transportation." For example, New York City has been promoting an eco-friendly urban logistics demonstration project using large cargo bicycles since 2019.

The Ministry of SMEs and Startups expects that through the newly established center, if various living logistics convenience service demonstrations are successfully conducted together with local residents and small business owners, it will lead to solutions for living logistics issues such as delivery conflicts caused by apartment delivery vehicles entering, creation of local jobs, and economic ripple effects including growth of the cargo electric bicycle industry.

Im Jeong-wook, Director of the Startup and Venture Innovation Office at the Ministry of SMEs and Startups, said, "The eco-friendly urban living logistics special zone utilizing public parking lots and cargo electric bicycles is a new logistics delivery business model not found overseas. We will actively cooperate with local governments and related ministries to resolve regulations and fulfill the role of creating local jobs." He added, "This event confirmed that the regulatory free zone plays an important role in promoting innovation by bringing together global leading companies, major corporations, and promising startups."

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