Korea to push logistics sector as growth engine

Deputy Prime Minister and Finance Minister Hyun Oh-seok said Tuesday that Korea must further develop and advance its logistics sector to coincide with its global economic level.

The government needs to create next-generation logistics companies that can provide comprehensive services using the latest advanced information technology, Hyun said in a meeting with economic-related ministers.

He urged the Ministry of Land, Infrastructure and Transport and the Ministry of Oceans and Fisheries to implement a road map that can take Korea to the next level of economic growth.

A logistics company must be able to not only provide ground transportation services but also air and sea.

Such services should also include purchasing, for instance, raw materials for customers as they are as important as the industry’s basic delivery services.

The two control towers for the advancement of the logistics sector aim to achieve 10 percent annual growth and create more than 72,000 jobs in the industry over the next five years, the ministries said in a statement.

“Korea plans to further develop the logistics industry as its new growth engine that can push the country to become an advanced economy,” the ministries said.

They also set out to foster logistics professionals by providing special education programs through universities.

The Fair Trade Commission aims to ensure fair market practices between logistics companies and their transporters such as truck drivers, or between companies and customers.

Hyun also urged ministers to continuously monitor the financial markets and constantly recheck their contingency plans against massive capital outflow due to external uncertainties.

Although Korea is able to withstand shocks due to its strong fundamentals, government agencies must keep on sharing financial information and coordinate against possible market downturns stemming from the U.S. stimulus exit.

Asia’s fourth-largest economy must also coordinate policies with G20, ASEAN and APEC economies to cushion the impact on the markets from the U.S.’ tapering of its quantitative easing.

By Park Hyong-ki (hkp@heraldcorp.com)