Korea Post to build investor relations, seek new business

Kim Joon-ho Korea Post president

By Bahk Eun-ji

Korea Post President Kim Joon-ho said that the postal agency plans to build investor relations (IR) next year to seek new business through its postal network.

“Korea Post is facing difficulties, as the paper mail delivery business has been shrinking. Competition has also intensified with the rise of private companies in parcel delivery and shipping,” Kim said during a recent meeting with reporters in Seoul.

The president said the postal agency will build IR in order to find new business by using the existing postal networks by next February. Currently, there are around 3,600 postal offices across the country.

“Post offices are set up across the country, so IR will be built in order to find out how to use the network,” Kim said.

The Korea Post will rent out around 150 postal offices for commercial use, except for small offices and public spaces.

The president cited the post office branch in Gwanghwamun, Seoul, as an example ― it hosts a franchise coffee shop and a convenience store in its building.

The president said, however, the new business will not hinder small business owners or self-employed individuals.

Korea Post has been diversifying its revenue sources to make up for the deficit from the shrinking traditional mailing business. It launched budget mobile phones sales and postal banking and insurance services.

It has also been strengthening partnerships with organizations in other nations, including ones in North Europe, South America and Africa.

The company will be exporting its advanced IT systems, including its mail distribution channel system and automated facilities for mail centers, after meeting with 320 business buyers during the Post-Expo in Stockholm, Sweden, in September.

The company has established automated postal centers across the country and currently runs two such centers in Gimpo and Hanam in Gyeonggi Province.

Kim said four or five more automated postal centers will be built in next year, with the centers incorporating more IT technologies to enhance customer value.

“These efforts will be made to help us overcome the challenges we face due to increasing labor costs and decreasing revenues,” the president said.