South Korea plans a $3 billion investment to expand overseas terminals and logistics, enhancing supply chains and trade competitiveness.
South Korea will invest $3 billion to expand its overseas terminals and logistics network under a government plan aimed at strengthening supply chains and boosting trade competitiveness, reports New York's Journal of Commerce.
The Ocean and Fisheries Ministry announced a three-point plan that will increase the number of publicly supported logistics facilities abroad from nine to 40, secure investments in 10 overseas port terminals, and assist in the development of three major logistics companies by 2030.
Priority will be given to warehouses and container yards in 11 target markets, including the US, Canada, Mexico, Vietnam, Indonesia, Thailand, Germany, and Poland. Vice Minister of Oceans and Fisheries Kim Seong-beom emphasized that securing overseas bases is vital for stabilizing supply chains.
The majority of the investment will be managed by the Korea Ocean Business Corporation (KOBC). The plan includes the creation of a foreign terminal investment group, which will consist of shipping companies, logistics operators, and port authorities such as Busan to identify expansion opportunities.
A container terminal investment fund worth $670 million will be established to acquire stakes in foreign terminals and secure operating rights. Additionally, KOBC's Global Logistics Supply Chain Investment Fund will double to $1.3 billion to support small and medium-sized logistics firms abroad.
The ministry stated that this initiative comes amid rising concerns that South Korea is losing ground in global trade due to limited overseas investment. Factors such as tariff hikes, the Russia-Ukraine war, the Red Sea conflict, and climate pressures are contributing to increased supply chain instability.
Currently, only nine percent of overseas logistics centers operated by South Korea's top 15 companies are owned, with the remainder leased. The ministry warned that this reliance on leasing exposes firms to rising costs and disruptions during crises.
Only seven South Korean companies hold stakes in overseas container terminals. HMM has interests in six, including Long Beach, Tacoma, Singapore, and Algeciras. CJ Logistics operates facilities in Shenyang, Klang, and Thailand, while Lotte Global Logistics has warehouses in Vietnam, the Philippines, and Europe.
