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CJ Olive Young opens dedicated logistics center on Jeju Island
Inside CJ Olive Young's Micro Fulfillment Center Jeju on its opening day on Wednesday in Aewol, Jeju Island / Courtesy of CJ Olive Young
By Ko Dong-hwan
Major beauty retailer CJ Olive Young has strengthened its delivery capabilities for Jeju consumers by opening a new logistics center on the island.
The K-beauty retail chain under CJ Group said Monday that it opened its Micro Fulfillment Center (MFC) Jeju on Wednesday in Aewol, located in the island's central region. The 1,702-square-meter facility is designed to enable same-day delivery for products ordered through the company's e-commerce platform, with purchases arriving before midnight on the day they are placed.
The company said the new center allows about 90 percent of orders on the island to be delivered to customers' doorsteps on the same day.
The launch of MFC Jeju comes as the island has long faced slower and more expensive deliveries than the mainland. Previously, orders to Jeju typically took at least three days to arrive, compared with up to two days for most mainland deliveries. Customers on the island were also required to pay a 2,500 won ($1.63) "remote area surcharge" on every delivery, regardless of the purchase amount.
With the facility, the surcharge will no longer be included in the bills.
Olive Young has also faced constraints on order volumes and sales on Jeju Island due to the absence of a local logistics center. While the company's same-day delivery service completed about 20 million deliveries across the mainland last year, deliveries on the island totaled just 150,000 despite growing demand. The company attributed the gap to Jeju's limited logistics infrastructure.
With the launch of MFC Jeju, Olive Young said it now offers up to 11,000 products for same-day delivery on the island and plans to expand the selection to 16,000.
The company has also introduced a dedicated Jeju section on its mobile app, allowing customers to browse products eligible for same-day delivery while highlighting shopping trends among local consumers.
"We invested in MFC Jeju to provide satisfactory shopping experiences and same-day delivery services to Jeju residents," an Olive Young official said.
"We believe customers across the country, including those in remote areas, should have equal access to the services we offer."
Unlike conventional logistics centers, which are typically located in rural areas, an MFC is a smaller facility designed to operate closer to customers in urban environments.
Olive Young introduced its first MFC in Seoul's Gangnam district in 2021 and has since expanded the network to 25 locations nationwide, including Busan, Gwangju and Daejeon.