South Korea Third-Party Logistics (3PL) Market Size
| Study Period | 2019-2028 |
| Base Year For Estimation | 2022 |
| Market Size (2023) | USD 27.49 Billion |
| Market Size (2028) | USD 33.53 Billion |
| CAGR (2023 - 2028) | 4.05 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
South Korea Third-Party Logistics (3PL) Market Analysis
The South Korean Third-party Logistics (3PL) Market size is expected to grow from USD 27.49 billion in 2023 to USD 33.53 billion by 2028, at a CAGR of 4.05% during the forecast period (2023-2028).
- 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 concentrated 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 increased, and there is a need to improve the demand for 3PL companies to handle orders continuously. It resulted in competition to deliver goods of good quality, making retailers seek logistics hubs in the Greater Seoul area.
- Due to the spread of COVID-19, third-party logistical challenges for exporting enterprises were severe in 2020, as both air and sea freight charges were raised. It was a year in which air freight saw a significant increase in rates. It is due to increased demand amid a supply shortage, while sea freight saw a rise in freight rates. Logistics issues were complicated, such as port congestion due to increased cargo volume and a lack of empty containers.
- Before the onset of COVID-19, governments put high tariffs on traditional staple foods (7.9%), with more than 90% of food being subject to non-tariff obstacles. The quarantine policy in the early stages of the COVID-19 outbreak resulted in a reduction of agricultural production personnel, the closure of agricultural and fishery products processing companies, and the suspension of logistics and transportation. It caused China's supply of agricultural and marine products and preparations to fall short of demand.
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 Korea 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 |
South Korea Third-Party Logistics (3PL) Market Trends
This section covers the major market trends shaping the South Korea Third-Party Logistics (3PL) Market according to our research experts:
Boom in Air Cargo contributing to 3PL market in South Korea
Export performance by air and sea in 2020 was mixed, as a significantly greater setback occurred. The revenue generated by aviation climbed by 11.4% in 2020, totaling USD 183 billion, supporting the 3PL market of the country during the pandemic. Exports of air freight further increased significantly in 2021. In 2021, the exports of high-value-added products such as displays (OLEDs), computers (SSDs), semiconductors, and pharmaceuticals exhibited considerable growth, according to the reputation for higher air cargo exports. On the other hand, even though maritime cargo exports were generally slow, secondary battery exports showed an upward trend that stood out.
The proportion of air cargo exports increased. In particular, in the case of exports to Germany, the proportion of air cargo exports increased.
In August 2021, Korean Air (the largest airline and flag carrier in South Korea) reported a 31% increase in second-quarter profit, driven by record revenue in its cargo business, which continues to support the airline amid a lack of passenger flights. The Korean flag carrier said revenue in the second quarter of 2021 rose 16% from one year ago to KRW 1.95 trillion (USD 1.7 billion), and operating profit rose to KRW 196.9 billion (USD 0.15 billion). Its cargo division achieved revenue of KRW 1.51 billion (USD 1.19 million), which South Korea said was the highest in its history, owing to companies restocking in anticipation of economic recovery and a shortage of capacity in the shipping industry.
To understand key trends, Download Sample Report
Growth of E-commerce in the Country is Driving the Market
South Korea is the sixth-largest e-commerce market in the world, with a projected revenue of USD 118 billion for the full year 2022, after China, the United States, Japan, Germany and the United Kingdom. With the deepening of economic globalization, disputes between Russia and Ukraine have gradually spread to South Korea.
South Korea’s online retail sales accounted for 32% of total retail sales, second only to China (46%) and the United Kingdom (36%). Countries with developed e-commerce industries such as Indonesia (20%) and the United States (16%).
By category, fashion products account for the bulk of the Korean e-commerce market revenue, with an estimated revenue of USD 41 billion in 2025, followed by electronics (USD 27 billion), beauty & health & personal care & home care (USD 19 billion), Toys & Hobbies & DIY (USD 17 billion).
According to Industry Experts, South Korean e-commerce revenue is expected to maintain an annual growth rate of 4% in the next few years, while global revenue is forecast to increase by 10% during the same period, and will increase by 12% in 2025. The proportion of online shopping in South Korea is expected to remain relatively stable at 39% in 2025, up from 37% in 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
DSV
CJ Logistics Corporation
Pantos Logistics
Kuehne + Nagel
Toll Holdings Limited
*Disclaimer: Major Players sorted in no particular order
_Market__-_Market_concentration.webp)
South Korea Third-Party Logistics (3PL) Market News
- November 2022: DSV and Gymshark have 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. In this capacity, DSV will provide international multimodal transport solutions for Gymshark's fitness wear, apparel and accessories.
- August 2022: Daewoo Logistics opened a container yard catering to Busan New Port on 24 August, capable of handling 3,580 TEU daily. The 45,608-square metre facility is located in Jinhae district in Changwon in South Gyeongsam province. The Busan-Jinhae Economic Free Economic Zone is a logistics hub in northeast Asia.
South Korea Third-Party Logistics (3PL) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption
1.2 Market Definition
1.3 Scope of the Study
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Sellers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes Products and Services
4.3.5 Intensity of Competitive Rivalry
4.4 Value Chain / Supply Chain Analysis
4.5 Government Regulations And Initiatives
4.6 General Trends In Warehousing Market
4.7 Demand From Other Segments, such As Cep, Last Mile Delivery, Cold Chain Logistics etc.
4.8 Insights Into The E-commerce Business
4.9 Technological Trends
4.10 Impact Of COVID-19 on The Market
5. MARKET SEGMENTATION
5.1 By Services
5.1.1 Domestic Transportation Management
5.1.2 International Transportation Management
5.1.3 Value-added Warehousing and Distribution
5.2 By End User
5.2.1 Manufacturing and Automotive
5.2.2 Oil & Gas and Chemicals
5.2.3 Distributive Trade (Wholesale and Retail trade including e-commerce)
5.2.4 Pharma & Healthcare
5.2.5 Construction
5.2.6 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 CJ Logistics Corporation
6.2.2 Pantos Co.
6.2.3 Toll Holdings Limited
6.2.4 Lotte Global Logistics
6.2.5 Sebang Co.
6.2.6 Daewoo Logistics
6.2.7 KCTC
6.2.8 Sunjin
6.2.9 SF Express
6.2.10 Jupiter Express
6.2.11 Logos Global*
- *List Not Exhaustive
7. FUTURE OF SOUTH KOREA 3PL MARKET
8. APPENDIX
8.1 Macroeconomic Indicators
8.2 External Trade Statistics - Exports And Imports, By Product
8.3 Insights into Key Export Destinations And Import Origin Countries
South Korea Third-Party Logistics (3PL) Market Research FAQs
How big is the South Korea Third-Party Logistics (3PL) Market?
The South Korea Third-Party Logistics (3PL) Market size is expected to reach USD 27.49 billion in 2023 and grow at a CAGR of 4.05% to reach USD 33.53 billion by 2028.
What is the current South Korea Third-Party Logistics (3PL) Market size?
In 2023, the South Korea Third-Party Logistics (3PL) Market size is expected to reach USD 27.49 billion.
Who are the key players in South Korea Third-Party Logistics (3PL) Market?
DSV, CJ Logistics Corporation, Pantos Logistics, Kuehne + Nagel and Toll Holdings Limited are the major companies operating in the South Korea Third-Party Logistics (3PL) Market.
South Korea Third-Party Logistics (3PL) Industry Report
Statistics for the 2023 South Korea Third-Party Logistics (3PL) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Third-Party Logistics (3PL) analysis includes a market forecast outlook to (2023to2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South Korea Third-Party Logistics (3PL) Report Snapshots
