Ikea sets up distributions corporation in Korea

Furniture retailer Ikea has set up a distributions services corporation in Korea, according to the company Wednesday.

“Ikea set up the new corporation as part of its expansion plan to become a multi-channel leader. We expect to be able to manage inventory and distribution more efficiently, and improve customer services such as delivery. We have not yet decided on any details,” Ikea said in an official statement.

The company established a corporation called Ikea Distribution Service Korea Ltd. effective Jan. 3, according to local news reports. The company said that there are no definite plans in the works for the operation of the corporation, including those for a distribution center here.

Currently, most of the products at Ikea’s store in Gwangmyeong, Gyeonggi Province, are filled through a distribution center in China, run by Ikea Distribution Services Asia Pacific in Shanghai.

Ikea is preparing to open additional stores in Korea, including one in Goyang, Gyeonggi Province, which is slated to open later this year.

By Won Ho-jung (hjwon@heraldcorp.com)