South Korea 3PL Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Top 3PL Companies in South Korea and the Market is Segmented by Service (Domestic Transportation Management, International Transportation Management, and Value-Added Warehousing and Distribution) and by End-User (Manufacturing and Automotive, Oil & Gas and Chemicals, Distributive Trade (Wholesale and Retail Trade, Including E-Commerce), Pharma and Healthcare, Construction, and Other End Users). The Report Offers the Market Sizes and Forecasts for the South Korea Third-Party Logistics (3PL) Market in Value (USD) for all the Above Segments.

South Korea Third Party Logistics (3PL) Market Size

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South Korea Third-Party Logistics (3PL) Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 28.60 Billion
Market Size (2029) USD 34.89 Billion
CAGR (2024 - 2029) 4.05 %
Market Concentration Low

Major Players

South Korea Third-Party Logistics (3PL) Market Major Players

*Disclaimer: Major Players sorted in no particular order

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South Korea Third Party Logistics (3PL) Market Analysis

The South Korea Third-Party Logistics Market size is estimated at USD 28.60 billion in 2024, and is expected to reach USD 34.89 billion by 2029, growing at a CAGR of 4.05% during the forecast period (2024-2029).

  • South Korea is advantageously present between two world-class importers: China to the west and Japan, another Asian economic powerhouse, to the east. It relies on third-party logistics for trade. South Korea is one of the top five 3PL markets in Asia-Pacific. The logistics industry in Korea has rapidly grown over the past ten years, with multinational, major manufacturing and wholesale companies concentrating on the internal and external efficiency and effectiveness of supply chains to reduce logistics costs.
  • With the development of e-commerce, the volume of shipments has increased. There is a need to improve the demand for 3PL companies to handle orders continuously. This resulted in competition to deliver goods of good quality, making retailers seek logistics hubs in the Greater Seoul area.
  • South Korea boasts a well-developed transportation infrastructure that includes a modern road network, efficient ports, and a robust rail system. Incheon International Airport is a major air cargo hub in the region, contributing significantly to the logistics sector. South Korea's strategic location in Asia makes it a key player in international trade. It is a part of various trade agreements, such as the Korea-US Free Trade Agreement (KORUS FTA) and the Regional Comprehensive Economic Partnership (RCEP), which further boost its logistics activities.

South Korea Third Party Logistics (3PL) Market Trends

Boom in Air Cargo contributing to 3PL market in South Korea

  • The growth of e-commerce and global trade has significantly increased the demand for air freight services, creating opportunities for 3PL providers specializing in air cargo logistics.
  • In 2021, exports of high-value-added products like displays (OLEDs), computers (SSDs), semiconductors, and pharmaceuticals saw considerable growth, contributing to the rise in air cargo exports. Although maritime cargo exports were generally slow, there was a notable upward trend in secondary battery exports, leading to an increased proportion of air cargo exports. Specifically, exports to Germany saw a rise in the proportion of air cargo exports.
  • In August 2021, Korean Air, South Korea's largest airline and flag carrier, reported a 31% increase in second-quarter profit. This growth was propelled by record revenue in its cargo business, which continued to support the airline despite the lack of passenger flights. The airline's revenue for the second quarter of 2021 surged by 16% compared to the previous year, reaching KRW 1.95 trillion (USD 1.7 billion), while the operating profit rose to KRW 196.9 billion (USD 0.15 billion). Notably, its cargo division achieved revenue of KRW 1.51 trillion (approximately USD 1.19 billion), marking the highest in its history. This was attributed to companies restocking in anticipation of economic recovery and a shortage of capacity in the shipping industry.
South Korea Third-Party Logistics (3PL) Market - Revenue generated by Air Cargo Export, South Korea, 2018 - 2021 (USD Billion)

Growth of E-commerce in the Country is Driving the Market

  • South Korea ranks as the sixth-largest e-commerce market globally, projecting a revenue of USD 118 billion for 2022, trailing behind China, the United States, Japan, Germany, and the United Kingdom. The ramifications of economic globalization have led to the gradual spread of disputes between Russia and Ukraine, affecting South Korea.
  • Online retail sales in South Korea constitute 32% of total retail sales, standing second only to China (46%) and the United Kingdom (36%). Notably, countries with developed e-commerce sectors, like Indonesia (20%) and the United States (16%), follow suit.
  • Regarding specific categories, fashion products dominate the Korean e-commerce market, with an estimated revenue of USD 41 billion expected by 2025. Electronics are projected at USD 27 billion, while beauty, health, personal care, and home care collectively amount to USD 19 billion. Additionally, Toys, Hobbies, and DIY products are forecasted to generate USD 17 billion in revenue.
  • Industry experts anticipate South Korean e-commerce revenue to sustain a 4% annual growth rate in the upcoming years. In comparison, the global revenue is forecasted to surge by 10% within the same period, reaching a 12% increase by 2025. The percentage of online shopping in South Korea is anticipated to hold relatively steady at 39% in 2025, up from 37% in 2022.

South Korea 3PL Market - Countries with the highest share of retail sales taking place online, in Percentage, South Korea, 2022

South Korea Third Party Logistics (3PL) Industry Overview

The third-party logistics (3PL) market in South Korea is fragmented, with a mix of foreign and local businesses, such as CJ Logistics, Pants Logistics, and Lotte Global Logistics, among the leading competitors. Consistent economic growth, the rapid expansion of e-commerce retailers such as Coupang, Wemakeprice, 11street, G-Market, and TMON, as well as the desire to achieve carbon-neutral operations, are driving increasing demand for third-party logistics businesses. Companies are concentrating on incorporating automation into their processes and upgrading their energy sources to reduce their carbon footprint.

South Korean gas stations have partnered with courier service providers, subletting their buildings as logistics hubs and bringing a new dynamic to the local delivery business. Hyundai Oil Bank Co., a major refiner in South Korea, has entered into a strategic relationship with Coupang Inc., an e-commerce business, to establish a gas station-based logistics system.

South Korea Third Party Logistics (3PL) Market Leaders

  1. DSV

  2. CJ Logistics Corporation

  3. Pantos Logistics

  4. Kuehne + Nagel

  5. Toll Holdings Limited

*Disclaimer: Major Players sorted in no particular order

South Korea 3PL Market Concentration
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South Korea Third Party Logistics (3PL) Market News

  • July 2023: CJ Logistics invested USD 457 million to establish three logistics hubs in the US communities of Elwood, Des Plaines, and Secaucus. The objective is to increase its presence in North America and accommodate the rising volumes of South Korean exports to the US. Construction of the facilities will be supported in part by Korea Ocean Business Corp, a state-backed ship finance organization.
  • June 2023: In order to build massive logistical hubs in the United States through a public-private partnership, CJ Logistics, a top supply chain and technology business in South Korea, established a strategic agreement with the Korea Ocean Business Corporation (KOBC). These logistics facilities, with a combined investment of over USD 457 million (KRW 600 billion), will prioritize managing the import and export cargo of international and South Korean businesses, enabling their international expansion and trade activation.
  • November 2022: DSV and Gymshark entered into a strategic partnership to enable Gymshark to meet growing international sales, complex supply chain requirements, and customer expectations. As an official logistics and transport partner of the British fitness community and apparel brand, Gymshark, DSV will play a key role in supporting the company's ambitious growth strategy by providing international multimodal transport solutions for Gymshark's fitness wear, apparel, and accessories.

South Korea Third-Party Logistics (3PL) Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumption

    2. 1.2 Market Definition

    3. 1.3 Scope of the Study

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Market Drivers

        1. 4.2.1.1 Global Trade and Export-Oriented Economy boosting the market

        2. 4.2.1.2 Investment in Robotics and Automation

      2. 4.2.2 Market Restraints

        1. 4.2.2.1 South Korea's logistics infrastructure, while generally well-developed, can experience congestion in key areas, such as ports and highways

        2. 4.2.2.2 Like many other countries, South Korea faced issues related to labor shortages in the logistics sector.

      3. 4.2.3 Market Opportunities

        1. 4.2.3.1 South Korea has a thriving e-commerce sector, with companies like Samsung, LG, and Hyundai expanding their online presence

        2. 4.2.3.2 South Korea serves as a major hub for global trade, connecting Asia with North America and Europe.

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Sellers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes Products and Services

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Government Regulations And Initiatives

    6. 4.6 General Trends In Warehousing Market

    7. 4.7 Demand From Other Segments, such As Cep, Last Mile Delivery, Cold Chain Logistics etc.

    8. 4.8 Insights Into The E-commerce Business

    9. 4.9 Technological Trends

    10. 4.10 Impact Of COVID-19 on The Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Services

      1. 5.1.1 Domestic Transportation Management

      2. 5.1.2 International Transportation Management

      3. 5.1.3 Value-added Warehousing and Distribution

    2. 5.2 By End-User

      1. 5.2.1 Manufacturing and Automotive

      2. 5.2.2 Oil & Gas and Chemicals

      3. 5.2.3 Distributive Trade (Wholesale and Retail trade including e-commerce)

      4. 5.2.4 Pharma & Healthcare

      5. 5.2.5 Construction

      6. 5.2.6 Other End-Users

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 CJ Logistics Corporation

      2. 6.2.2 Pantos Co.

      3. 6.2.3 Toll Holdings Limited

      4. 6.2.4 DSV

      5. 6.2.5 Kuehne + Nagel International AG

      6. 6.2.6 Daewoo Logistics

      7. 6.2.7 KCTC

      8. 6.2.8 Sunjin

      9. 6.2.9 SF Express

      10. 6.2.10 Jupiter Express

      11. 6.2.11 Logos Global*

    3. *List Not Exhaustive
  7. 7. FUTURE OF SOUTH KOREA 3PL MARKET

  8. 8. APPENDIX

    1. 8.1 Macroeconomic Indicators

    2. 8.2 External Trade Statistics - Exports And Imports, By Product

    3. 8.3 Insights into Key Export Destinations And Import Origin Countries

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South Korea Third Party Logistics (3PL) Industry Segmentation

Third-party logistics, often known as 3PL, is a system in which a company offers inventory management and delivery services to another company. A 3PL company is frequently used by a company (client) that does not have its own logistics department. In turn, 3PL takes care of some or all of the client's logistics needs.

The South Korean third-party logistics (3PL) market is segmented by service (domestic transportation management, international transportation management, and Value-added Warehousing and Distribution) and by end-user (manufacturing and automotive, oil & gas and chemicals, distributive trade (wholesale and retail trade, including E-commerce), pharma and healthcare, construction, and other end users). 

The report offers the market sizes and forecasts for the South Korean third-party logistics (3PL) market in value (USD) for all the above segments.

By Services
Domestic Transportation Management
International Transportation Management
Value-added Warehousing and Distribution
By End-User
Manufacturing and Automotive
Oil & Gas and Chemicals
Distributive Trade (Wholesale and Retail trade including e-commerce)
Pharma & Healthcare
Construction
Other End-Users
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South Korea Third-Party Logistics (3PL) Market Research Faqs

The South Korea Third-Party Logistics Market size is expected to reach USD 28.60 billion in 2024 and grow at a CAGR of 4.05% to reach USD 34.89 billion by 2029.

In 2024, the South Korea Third-Party Logistics Market size is expected to reach USD 28.60 billion.

DSV, CJ Logistics Corporation, Pantos Logistics, Kuehne + Nagel and Toll Holdings Limited are the major companies operating in the South Korea Third-Party Logistics Market.

In 2023, the South Korea Third-Party Logistics Market size was estimated at USD 27.44 billion. The report covers the South Korea Third-Party Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Third-Party Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

South Korea Third-Party Logistics (3PL) Industry Report

Statistics for the 2024 South Korea 3PL market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea 3PL analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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South Korea 3PL Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)