South Korea Logistics Market Assessment, By Model [1PL, 2PL, 3PL, 4PL], By Services [Transportation, Freight Forwarding, Inventory Management, Integration and Consulting, Warehousing and Distribution, Value-Added Logistics], By Category [Conventional Logi

South Korea logistics market is projected to witness a CAGR of 5.34% during 2032, growing from USD 161.43 billion in 2024 to USD 244.75 billion in 2032F, owing to rapid expansion of e-commerce, technological advancements, urbanization and government initiatives. South Korea's logistics market is undergoing a quiet transformation, driven not just by digital upgrades, but by a complete rethink of operational agility, network resilience, and customer-centric fulfillment. Long known for its manufacturing excellence and export strength, South Korea is now building a logistics infrastructure that matches its high-speed economy.

As e-commerce accelerates and industrial trade corridors deepen, the country’s logistics players are shifting from traditional freight handling to intelligent, tech-integrated solutions. Whether it is AI-powered inventory forecasting, smart port automation, or last-mile logistics for the digitally native consumer, Korea’s market is evolving fast. Government-backed initiatives, including the “Smart Logistics Promotion Strategy” and private investments from top players, are helping build a logistics network that is lean, visible, and future-proof. Behind the scenes, a quiet race is underway, not just to move goods, but to move data, decisions, and delivery at the same speed.

For instance, in July 2024, HMM Co., Ltd. entered Memorandum of Understanding (MoU) with Korea Railroad Corporation (KORAIL) to expand the use of domestic rail infrastructure for inland transportation. The agreement focuses on utilizing rail networks for refrigerated cargo and establishing an integrated ""Intermodal One-Stop Transportation System"" that connects rail and maritime freight operations. This collaboration aims to advance the development of a low-carbon logistics system in South Korea, supporting efforts to reduce carbon emissions and promote sustainable transportation solutions.

In March 2024, Korean Air announced the construction of a USD 439 million aircraft engine maintenance, repair, and overhaul (MRO) complex near Incheon Airport. Slated to become Asia’s largest, the facility supports complex logistics and MRO operations for Korean Air as well as partners like Hyundai Glovis.

Surge in Smart Logistics and Automated Fulfillment Demand Drives South Korea Logistics Market

The government is targeting digitalization logistics as a national priority, and major players are doubling down on warehouse automation, data platforms, and robotics, driving the South Korea logistics market demand. From automated sorting to predictive delivery allocation, smart logistics is now the standard for scale. One of the key factors propelling this growth is the explosive expansion of e-commerce, led by giants including Coupang and Naver, which has necessitated the adoption of advanced automation technologies to manage high order volumes efficiently. Automated warehouses, equipped with autonomous mobile robots (AMRs) and AI-driven sorting systems, are becoming the norm, enabling companies to process orders with greater speed and accuracy while reducing dependency on manual labor. Another critical driver is the rise of same-day and dawn delivery services, which demand ultra-efficient fulfillment processes. Companies are investing heavily in micro-fulfillment centers and dark stores strategically located in urban areas to shorten last-mile delivery times.

For instance, in November 2023, CJ Logistics announced the expansion of its flagship “TES Innovation Center” in Daejeon, focused on robotics, AI-based routing, and digital twin simulation for its distribution centers. The initiative follows their 2022 success with the “e-Fulfillment” model and aims to standardize AI-powered decision-making across Korea's core logistics infrastructure.

Growth of E-commerce Logistics Driving 3PL and Last-Mile Expansion to Shape the Market Dynamics

South Korea’s e-commerce boom has significantly increased demand for contract logistics, same-day delivery, and high-volume warehouse space. This has sparked strategic partnerships and last-mile innovations among logistics providers. With B2C orders rising, third-party logistics (3PL) providers are no longer just handlers; they are becoming customer experience architects. Brands and retailers are turning into 3PLs to manage fluctuating order volumes without heavy fixed investments in warehousing or fleets. Autonomous mobile robots (AMRs) and automated guided vehicles (AGVs) reduce labor dependency in warehouses. The symbiotic growth of e-commerce, 3PLs, and last-mile networks is redefining the South Korea logistics market. Companies that leverage automation, data analytics, and flexible fulfillment models will lead the next phase of market evolution.

For instance, in August 2023, Lotte Global Logistics partnered with Coupang to launch a dedicated e-commerce delivery route optimization engine, reducing intra-city delivery delays by over 18%. The project combines GPS route tracking, AI-predictive traffic algorithms, and mobile fulfillment stations in Seoul and Incheon.

Freight Forwarding Holds the Largest South Korea Logistics Market Share

Freight forwarding services hold a vital and expanding role in South Korea’s logistics market, serving as a critical link in both domestic and international trade. The country’s strategic location as a gateway to Northeast Asia makes it an essential hub for regional freight movement. South Korea’s strong manufacturing base, particularly in electronics, automotive, and shipbuilding industries, generates a steady volume of cargo that requires efficient and reliable freight forwarding solutions. Among the various modes of freight forwarding, road freight dominates due to the country’s advanced road infrastructure and the importance of domestic distribution, while air freight is the fastest-growing segment, catering to high-value and time-sensitive shipments. Maritime and rail freight also play significant roles, particularly for bulk exports and imports.

For instance, in November 2024, Hyundai Glovis Co., Ltd. announced plans to establish a large-scale logistics complex near South Korea’s New Port in Busan, the world’s seventh busiest container port. The company signed a land purchase agreement with Busan New Port Woongdong Development, securing approximately 95,000 square meters in the port’s Woongdong district. The new facility, set for completion by 2027, will feature a container yard and an integrated logistics center. This development is part of Hyundai Glovis’s strategy to strengthen its non-automotive logistics network and enhance its forwarding infrastructure.

Impact of U.S. Tariffs on South Korea Logistics Market

• South Korea’s government rolled out a USD 3.25 billion (approx. KRW 4.6 trillion) support package for SMEs vulnerable to U.S. tariffs, including subsidies specifically targeting logistics expenses and freight cost reductions. This policy underscores how tariffs are increasing the cost burden on the logistics sector, prompting nationwide financial countermeasures.
• America’s imposition of a USD 150-per-vehicle fee on non U.S. built vessels, plus expanded Section 232 tariffs on steel and autos, has raised shipping costs and complexity for carriers managing South Korean exports, impacting key logistics players and raising concerns over distorted freight routes.
• Facing potential 25% U.S. auto and semiconductor tariffs, South Korean manufacturers are increasingly shifting production to U.S. facilities. This adaptation significantly affects logistics patterns, moving freight infrastructure, routes, and network models closer to end markets.

Key Players Landscape and Outlook

South Korea’s logistics market is anchored by large and diversified players that offer integrated supply chain services spanning freight, warehousing, and e-commerce fulfillment. HMM and Pan Ocean lead in maritime logistics, while Korean Air supports growing air freight needs for high-value, time-sensitive cargo. Hanwha, Sebang, and KCTC bring specialization in industrial cargo, bulk transport, and hazardous goods handling. As logistics shifts from volume to intelligence, the winners are those investing in automation, data integration, and end-customer experience. With a supportive regulatory backdrop and increasing demand from both domestic consumption and global exports, South Korea’s logistics sector is set to become a hub of agile, digital-first operations.

For instance, in April 2025, Korean Air Lines Co., Ltd. announced a major investment of USD 889 million (KRW 1.2 trillion) to construct a state-of-the-art Urban Air Mobility (UAM) and Aviation Safety R&D Center in Bucheon, Gyeonggi Province. This new center is set to become a key hub for future mobility and aerospace innovation in South Korea. The project demonstrates Korean Air’s commitment to shaping the future of aviation through cutting-edge technology, top-tier training, and a focus on sustainable growth. The facility acts as a central site for research, pilot education, and advancements in aviation safety, further enhancing the airline’s capabilities as it enters a new era following its merger with Asiana Airlines.