CJ Logistics to raise W740b fund to bolster fulfilment network

CJ Logistics, South Korea’s largest logistics firm, said Sunday that it is set to raise up to 740 billion won ($602 million) to construct major fulfillment centers in the metropolitan area, accelerating its e-commerce business.

The firm will first raise 250 billion won in cash with Samsung SRA Asset Management, the real estate investment arm of Samsung Group, and plans to borrow the remaining 490 billion won from other financial companies.

The fund will be operated for eight years until 2030.

“Financial investors can expect high returns by investing in the burgeoning logistics real estate market amid the e-commerce boom,” the company said.

With the funds, CJ Logistics plans to build fulfillment centers that cover one-stop storage, inventory management, packing and delivery for metropolitan areas including Seoul, Incheon and Gyeonggi Province.

“We will establish a tight logistics network there, and enhance customer service with fast delivery,” the company said.

Fulfillment centers can connect with major hubs such as Gonjiam terminal to shorten delivery time. Unlike general delivery service that uses multiple sub terminals and takes two to three days to complete delivery, fulfillment centers directly send packages to the hubs and deliver them in one day.

The company looks to further expand its footing in the e-commerce business by offering the new last mile delivery service that guarantees more swift and accurate package delivery at the customer’s door.

CJ Logistics currently operates two fulfillment centers in Gyeonggi Province -- a cold chain fulfillment center in Yongin and a smart fulfillment center in Gunpo, which uses artificial intelligence and logistics robots.

By Byun Hye-jin (hyejin2@heraldcorp.com)