The Korean logistics industry is accelerating in the rapidly expanding Chinese market. Most of the companies that have entered the Chinese market have been hit by the `THAAD retaliation`, but domestic logistics companies are expanding the market by defeating the `THAAD` typhoon by expanding business mainly through mergers and acquisitions (M & A).

According to industry sources on September 14, CJ Korea Express has signed a memorandum of understanding (MOU) with Cainiao, a subsidiary of Alibaba, the largest e-commerce company in the country, to catch up with the growing market in China. The two companies also opened the `Fullfill Center`, a state-of-the-art logistics center which can store e-commerce merchandise and integrate services such as customs clearance.

Besides, CJ Korea Express is making efforts in the B2B logistics business in China with the merger (M & A) and the establishment of a joint venture. Following the acquisition of CJ Smart Cargo, a heavy-weight transport company in 2013, the company acquired CJ Rokin, the largest freezing and refrigeration logistics company in China in 2015. Last year, it also established TCL Group, one of China`s three major electronic companies, and CJ Spindex, a logistics joint venture. CJ Korea Among the 22 logistics bases in the world, China is considered to be the largest market. A company representative said, "The success of the acquired Chinese companies is good. We will continue to expand our business in China."

Meanwhile, Lotte Global Logistics is also spearheading efforts to cooperate with local companies such as Winda and ZM Logistics in China. Winda is a general courier center and has a food distribution business with ZM Logistics. In recent years, the Company has expanded exclusive logistics facilities operated at Incheon International Airport to catch up to the capacity of the station.

In the early 2000s, Lotte Logistics, which established a local subsidiary in Shanghai, is currently engaged in a variety of businesses including international logistics, port, inland container transportation, and corporate logistics. A company representative said, "China`s logistics market is expanding and its business is expanding." China`s business accounted for 20% of the total overseas market and is growing steadily. "

As China`s logistics market is booming, other large corporations are moving to China. SK recently acquired 11.77% stake in ESR, the second largest logistics center operator in China, and Samsung SDS has established a joint venture, SDS Kerry, with China logistics company Kerry Logistics. An industry expert said, "Although THAAD has suffered a slight blow from South Korea to China, the companies that acquired them were originally Chinese and most of the B2B logistics business had little impact."

By Choi Yong Soon cys@


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