Coupang Logistics Service (CLS) will build a sub-hub (an intermediate logistics facility that sends products from the logistics center to the delivery camp) in Jangseong-gun, Jeollanam-do to expand its “rocket delivery” service in the Honam region and hire about 450 people. This is an additional investment to respond to the increased volume of rocket delivery orders in the Honam region since the Gwangju Advanced Logistics Center began operating last October. As rocket delivery orders increase, the local economy is revitalized, which in turn leads to more investment, creating a “virtuous cycle.”
Coupang's delivery subsidiary CLS announced on the morning of the 17th that it signed an investment agreement with Jangseong County to establish a sub-hub and plans to build a Coupang Jangseong sub-hub. The signing ceremony was attended by CLS CEO Hong Yong-jun, National Assembly member Lee Gae-ho (Damyang County, Hampyeong County, Yeonggwang County, and Jangseong County in Jeollanam-do), and Jangseong County Governor Kim Han-jong.
Coupang Jangseong Sub-Hub will be built in Yongheung-ri, Seosam-myeon, Jangseong-gun with an investment of 15 billion won, and is scheduled to open in February. The facility, which will have a total floor area of approximately 4,000 pyeong, is expected to directly employ approximately 450 people.
The delivery area that Jangseong Sub-Hub will be in charge of includes Gwangju Metropolitan City, Naju City, Suncheon City, Yeosu City, Mokpo City, and Muan County. Starting next month, the Jeonnam Rocket Delivery area will be expanded, which is expected to help resolve the 'food desert' phenomenon in remote areas where daily necessities and groceries are difficult to obtain. In addition, it is expected to contribute to the revitalization of the local economy through the expansion of local small business product purchases and entry into open markets, including new employment.
Hong Yong-jun, CEO of CLS, said, “I am pleased that the expansion of rocket delivery has created a virtuous cycle that leads to local reinvestment,” and “We will spare no effort to revitalize the local economy through large-scale employment of Jangseong residents.”
Rep. Lee Gae-ho said, “I expect that Coupang Jangseong Sub-Hub will provide jobs to local youth and greatly contribute to the sale of agricultural and livestock products produced in the region,” adding, “I will promptly begin discussions with Jangseong County and spare no effort in providing support.”
Jangseong County Governor Kim Han-jong said, “This investment agreement will open the door to resolving important local issues such as youth unemployment and securing sales channels for agricultural products,” adding, “We will actively cooperate so that the Jangseong sub-hub can be built without a hitch.”
Coupang’s investment in Jangseong Sub-Hub is a measure to respond to the recent rapid increase in rocket delivery orders in the Honam region. Coupang announced early last year that it would invest 3 trillion won by 2026 to build and operate nine logistics centers across the country, including local areas. Since the Gwangju Advanced Logistics Center, one of them, began operating in October of last year, rocket delivery orders from customers in the Gwangju and Jeonnam regions have been increasing rapidly.
Accordingly, the decision was made to invest additionally in sub-hubs separately from the existing logistics center investment plan. Sub-hubs are intermediate facilities that serve as 'mini logistics centers' connecting logistics centers and delivery camps, and function to share the logistics center's cargo volume.
The Chungbuk Jincheon-gun Sub-hub, which signed an investment agreement in November of last year, also made a follow-up investment decision following the completion of the Namdaejeon Logistics Center. As logistics centers are built and operated in each region in the future, there is a possibility that a 'virtuous cycle structure' will be established that will lead to additional investments such as Sub-hubs.
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