South Korea Third-Party Logistics (3PL) Market Size

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.