"By 2030, Nationwide 24-Hour Parcel Delivery Anytime, Anywhere"

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The government will usher in an era of ‘nationwide 24-hour delivery’ service by 2030. Five major inland logistics hubs, including the Uiwang Inland Container Depot (ICD) and Gunpo Integrated Freight Terminal (IFT), will be modernized into logistics centers. On the 7th, the Ministry of Land, Infrastructure and Transport announced this plan to strengthen the competitiveness of the logistics industry at the 18th Public Livelihood Forum held in Incheon, presided over by President Yoon Suk-yeol.

The Ministry stated, "Since the COVID-19 pandemic, lifestyle logistics services such as parcel delivery and food delivery have become essential services that determine the quality of life for the public. While delivery services within urban areas have become faster, door-to-door delivery is not possible in island and mountainous regions, and additional fees are charged, widening the service gap by region. By 2030, we aim to provide 24-hour delivery services to all citizens nationwide."

To this end, starting from June this year, areas vulnerable to logistics, such as islands and mountainous regions including Baengnyeongdo, where additional fees and delivery delays cause disparities in parcel services, will be designated and managed as logistics vulnerable areas. The Ministry explained, "If residents in logistics vulnerable areas pay additional delivery fees, the Ministry of Oceans and Fisheries has been providing post-delivery fee support since last year."

Additionally, the Ministry revealed plans to ease freight transport regulations to allow parcel delivery drivers to jointly deliver items from multiple courier companies. From June, the evaluation of parcel delivery services will include the level of service in vulnerable areas, and from December, the Korea Post and the parcel delivery industry will jointly pilot collection and delivery services.

The area for fast delivery services, including early morning, same-day, and next-day delivery, will also be expanded. The Ministry said, "To enable ultra-fast delivery within urban areas, we will expand community-based infrastructure by utilizing existing facilities such as gas stations and bus terminals to create 'Micro-fulfillment Centers (MCF)'." MCF refers to small-scale logistics warehouses that store products in advance through demand forecasting to enable immediate delivery upon order.

To shorten parcel collection and sorting times, loans with interest support of up to 2 percentage points will be provided for building smart logistics facilities applying artificial intelligence and robotics. The budget allocated for this in 2023 is 11.4 billion KRW.

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The Ministry also announced plans to strengthen logistics infrastructure on land, at ports, and airports. It stated, "The logistics industry is the artery connecting industries and a core national infrastructure for South Korea, which has a high dependence on exports and imports. Although we possess global infrastructure such as Incheon Airport, ranked second worldwide, our logistics competitiveness is ranked 17th globally. Our goal is to elevate it to the world’s top level."

First, aging inland logistics hubs will be modernized to strengthen their function as national logistics centers. Starting with establishing operational plans for the metropolitan area (Uiwang ICD, Gunpo IFT) by next year, activation plans for logistics hubs in Honam (Jangseong), Yeongnam (Chilgok), Jungbu (Sejong), and Busan (Yangsan) will be developed by 2027.

The Ministry said, "We will transform aging urban logistics facilities into advanced urban logistics complexes that integrate residential, cultural, and commercial facilities to improve them into resident-friendly spaces. In Seoul, the Sinjeong complex is scheduled for completion in 2028, and the Yangjae freight terminal in 2029."

Port hinterlands will be expanded to 31 million square meters by 2030 to support the business activities of resident companies. As of 2022, port hinterlands cover 16 million square meters. The Ministry also announced, "To attract advanced businesses and foreign investment, the Pyeongtaek port hinterland will be designated as a 'Port Free Trade Zone' in the first half of this year, and the Incheon New Port hinterland will be similarly designated in the second half."

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To expedite air cargo handling, a 'Smart Cargo Terminal' automating logistics processes will be established at the Incheon Airport logistics complex by 2027. Support will also be provided to attract logistics companies specializing in key export items, including semiconductors. In May this year, PNS Networks will become a semiconductor logistics company; next year, Hyundai Glovis will become an international transshipment cargo company; and by 2027, AACT will specialize as a foreign shipping company cargo logistics firm.

A joint logistics center to support exports and imports for small and medium logistics companies will also be established. In cooperation with Incheon Airport and the Small and Medium Business Venture Corporation, it will be built on a 18,500 square meter site within the second logistics complex.

‘International Logistics Special Zones’ will be promoted at major hubs where airports, ports, and railroads converge. These zones will facilitate manufacturing and technology development based on logistics by creating logistics and industrial sites near logistics hubs and allowing business-friendly regulatory exemptions.

Furthermore, starting in June, a ‘Global E-commerce Transshipment Cargo Multimodal Transport Pilot Project’ will begin, transporting cargo from China by truck to ship to Incheon, developing a 'Sea & Air' logistics channel and supporting market expansion.

In addition, the Ministry has set plans to foster a ‘future logistics industry where youth want to work.’ This year, robot delivery demonstrations will be conducted in apartment complexes, the actual delivery sites.

Within the Land, Infrastructure and Transport Innovation Fund, which has a budget of 70.8 billion KRW this year, ‘Smart Logistics’ will receive specialized support to focus on logistics startups. Support will also be provided to train 700 young logistics workers operating logistics IT, forklifts, and cranes.

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