Coupang to build its largest 'fulfillment' center in Daegu

Coupang CEO Bom Kim, fifth from left, poses with other dignitaries during the groundbreaking ceremony for the company's high-tech logistics center in Daegu National Industrial Complex, North Gyeongsang Province, Monday. / Courtesy of Coupang

By Kwak Yeon-soo

Coupang will build its largest high-tech logistics center in Daegu National Industrial Complex, North Gyeongsang Province, the company said Tuesday.

This comes after the e-commerce platform signed a memorandum of understanding (MOU) with Daegu Metropolitan City to construct an “eco-friendly high-tech logistics center” in November 2015.

Coupang will invest 320 billion won ($276 million) to construct a mega "fulfillment" center covering 330,000 square meters, which is equivalent to the size of 46 soccer fields. The construction is expected to be completed in 2021.

The company's Daegu logistics center will serve as the company's key hub to establish a nationwide logistics system for Rocket Delivery.

The center will also tap into AI-powered logistics and a delivery system that enhances work efficiency and reduces workload by helping workers manage items conveniently, optimizing delivery routes and using eco-friendly logistics equipment.

Coupang will create more than 2,500 new jobs and drive the growth of relevant industries in construction and operation of the logistics center.

Once Coupang's logistics network is expanded across the nation, it will present business opportunities to more than 2,000 small businesses in the region.

“We will be able to provide better Rocket Delivery service for our customers, with the support of Daegu City, the Ministry of Land, Infrastructure and Transport and Ministry of Trade, Industry and Energy to create a business-friendly environment,” Coupang CEO Bom Kim said during a groundbreaking ceremony held in Daegu National Industrial Complex, Monday.

“Coupang will continue with such investment and work toward adding new jobs and helping local economies.”

Some key figures, such as Daegu Mayor Kwon Young-jin and Dalseong County Assemblyman Choo Kyung-ho, attended the ceremony.

“We look forward to pursuing cooperation in various areas including advancement of logistics system and introduction of autonomous vehicle delivery, backed by AI and robot technologies,” Daegu Mayor Kwon Young-jin said.