Government to Invest Over 4.5 Trillion Won to Secure Global Logistics Hubs

Securing 40 Overseas Logistics Centers and 10 Port Terminals by 2030
Strengthening Linkages Between Public and Private Investments

The government will invest over 4.5 trillion won to secure overseas logistics hubs. This is a strategic response to enhance the stability of import and export logistics amid prolonged global trade uncertainties and geopolitical risks.

On December 16, the Ministry of Oceans and Fisheries announced its "Strategy for Securing Global Logistics Supply Chain Hubs" at the Industrial Competitiveness Enhancement Ministers’ Meeting. The ministry explained that the structural instability of global logistics supply chains is intensifying due to the spread of tariff hikes, the Russia-Ukraine war, the Red Sea crisis, and the ongoing climate crisis.

In fact, major global logistics companies and shipping lines have recently been expanding their acquisitions of logistics centers and container terminals to strengthen their market dominance. The share of container terminals worldwide owned by shipping lines and their affiliates surged from 32% in 2018 to 49% in 2024. In contrast, Korean logistics companies are evaluated as having significantly less overseas infrastructure.

Currently, only 8.8% of overseas logistics centers operated by Korea’s 15 leading logistics companies are owned outright. Most are operated through leases, which poses significant risks such as soaring logistics costs or delays in securing facilities during supply chain crises. As for overseas container terminals, which are directly linked to shipping competitiveness, Korean companies hold stakes in only seven, falling short of the level prior to the bankruptcy of Hanjin Shipping.

To overcome these limitations, the government has set targets for 2030: expanding 40 overseas public-supported logistics bases, securing 10 overseas port terminals, and nurturing three Korean companies to rank among the global top 50 logistics firms.

First, investments in storage and processing facilities such as logistics warehouses and container yards will be expanded, focusing on 11 key logistics hub countries including the United States, Vietnam, India, and Germany. Publicly supported logistics infrastructure, with participation from the Korea Ocean Business Corporation and port authorities, will increase from nine sites currently to 40 by 2030.

For overseas container terminals, a consultative body comprising both public and private sectors will be formed to jointly pursue investment opportunities and entry strategies. In the short term, a 1 trillion won global container terminal investment fund will be created to secure equity stakes, while in the mid- to long-term, the plan is to gradually secure operating rights.

For strategic cargoes such as energy and grain, the government will also work to secure overseas bulk terminals. When companies identify investment opportunities, the Korea Ocean Business Corporation and port authorities may participate as joint partners. Additionally, the government will support the modernization of aging domestic terminals by utilizing green ship fuel infrastructure funds and port smartization funds.

The full-cycle support system to help logistics companies expand overseas will also be strengthened. During the initial review stage, the government will provide key regional market information and increase the limit for local feasibility study support from 100 million won to 200 million won. At the investment stage, the global logistics supply chain investment fund will be doubled from 1 trillion won to 2 trillion won, with 300 billion won allocated as a dedicated blind fund for small and medium-sized logistics companies.

After entering overseas markets, public sector support will be provided to help companies overcome management challenges such as responding to local regulations, securing clients, and recruiting talent. Joint public-private briefings and cooperation channels will also be operated.

The government will also convert the pan-government logistics support network into a permanent system. Through the "K-Logistics Consultative Body," which includes the Korea Ocean Business Corporation, port authorities, Korea Development Bank, Export-Import Bank of Korea, and KOTRA, the government will jointly address corporate challenges and promote collaboration models to strengthen the overseas investment capabilities of port authorities.

Kim Seongbeom, Vice Minister of Oceans and Fisheries, stated, "Securing overseas logistics hubs is a key task for stabilizing supply chains," adding, "Through this strategy, we will strengthen our logistics competitiveness and provide stable support for Korea's import and export economy."

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