South Korea Mergers and Acquisition in Logistics Industry South Korea Logistics Market | Page 2

Freight Forwarding Market
The freight forwarding market grew from USD ~ billion during 2011 to USD ~ billion during
2013, at a CAGR of ~% during 2011-2013. Expanding e-commerce, retail, manufacturing and
express delivery industries has positively augmented the freight forwarding market in South
Korea. The market witnessed a setback as the revenues fell to USD ~ billion during 2014.
The logistics industry remained relatively stagnant post 2014 as the industry account ed for
same revenues during 2016.
Sea freight movement has majorly dominated the market of logistics in South Korea with a
revenue share of ~% during 2016, followed by land freight (~ %) and air freight (~%) during
the same year. Majority of the freight movement during this period has been undertaken
through the Asia-North America and European Union flow corridor. Major competitors in
South Korea freight forwarding market are DHL, DB Schenker, Nippon Express, Ceva
Logistics, UPS, Yusen Logistics and others. It has been forecasted that the market will
increase at a low CAGR of ~% during 2016-2021 to reach USD ~ billion by 2021.
Express Delivery Market
Express logistics is seen as a premium segment of the logistics industry as it involves time
sensitive shipments of goods via multimodal transportation. The market has grown from
USD ~ billion during 2011 to ~ billion in 2016. The rising prominence of online shopping,
especially by B2C segments and expanding cold chain logistics market has attributed to the
increasing demand for express delivery in past few years in South Korea. Air express has
dominated the market of South Korea express logistics during 2016. The presence of well
planned infrastructure to support air cargo had been the prime reason which has attr ibuted
the dominance of air express in the country. In terms of revenues, air express has
contributed a share of ~% during 2016 followed by ground express accounting for ~% during
the same year.
It has been forecasted that the express delivery market will increase at a CAGR of ~% during
2016-2021 and is envisaged to reach at USD ~ billion in 2021.
Third Party Logistics
Third party logistics market has witnessed a positive growth in the past few years in South
Korea. The market grew at a CAGR of ~% during 2011-2016. Third-party logistics (3PL)
outsourcing is rapidly gaining prominence as more corporations across the world are unable
to manage their complex supply chains and hence are outsourcing logistics activities to the
3PL service providers. On the basis of revenues, the third party logistics market share in the
country grew from ~% in 2011 to around ~% of the logistics market during 2016. The growth
has been attributed to the growing e-commerce industry in the country. Major competitors
in the 3PL market are Hyundai Gls Co. Ltd, DFDS Transport (Korea), Ltd., Ahjin
Transportation, DKSH, Zuellig Pharma and others. It has been forecasted that the market
will increase at a CAGR of ~% during 2016-2021 to reach at USD ~ billion by 2021.