BUSAN — BGF Retail (282330) has completed an ultra-large logistics center in Busan's Gangseo District, where it invested 260 billion won ($187 million). The company plans to use the facility as a core logistics hub supporting its expansion beyond domestic retail into global business, combining distribution functions that supply CU stores nationwide with import and export operations through Busan New Port.
The completion ceremony for the BGF Retail Busan Logistics Center is being held on the 16th in Gurang-dong, Gangseo District, the Busan Metropolitan Government said. Busan attracted the investment from BGF Retail in 2021, and construction began in 2024, taking two years to complete.
The Busan Logistics Center, built with a total investment of 260 billion won, is the largest single investment in BGF Retail's logistics infrastructure. It sits on a site of about 47,000 square meters with a total floor area of about 127,000 square meters, comprising one basement level and four above-ground floors. It is regarded as the largest logistics facility investment in Korea's convenience store industry.
The center serves simultaneously as the company's second central distribution center, supplying goods nationwide, and as a regional distribution hub for Busan and the Yeongnam region. It will also function as a trade base linked to Busan New Port, consolidating BGF Retail's logistics operations in one location. As the company has recently expanded overseas into markets including Hawaii, Mongolia and Kazakhstan, the center will also serve as a forward base for building a global logistics network.
Automated equipment has been installed to reduce workloads and improve worker safety. Solar power facilities on the roof provide a foundation for environmentally friendly logistics operations.
BGF Retail operates the CU convenience store chain and has about 18,000 franchise stores in South Korea. Consolidated revenue last year came to 9.06 trillion won ($6.5 billion). The center's role is expected to grow as the company expands abroad, having recently become the first Korean convenience store operator to enter Hawaii and surpassing 800 stores globally.
The Busan city government expects the large-scale investment to create local jobs, invigorate the logistics industry and strengthen logistics competitiveness in connection with Busan Port. "The Busan Logistics Center will be a driving force in raising the competitiveness of Busan's entire marine industry, including shipping, ports and logistics," Busan Mayor Jeon Jae-soo said.
