Huge Coupang project underway

Coupang has started building its largest fulfillment center, a massive complex in Daegu that the company hopes will allow it to expand services and increase efficiencies.

A groundbreaking ceremony was held Monday for the 320-billion-won ($277-million), 330,578.5-square-meter (3,558,317-square-foot) structure, which will be situated inside the Daegu National Industrial Complex.

Coupang signed a memorandum of understanding with the Daegu city government in November 2015 for the construction and additionally agreed with the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport to complete construction by 2021.

The ceremony on Monday was attended by Daegu Mayor Kwon Young-jin, Rep. Choo Kyung-ho of the Liberty Korea Party and Coupang CEO Kim Bom.

The new fulfillment center, when completed, will serve as the main distribution center for Coupang’s nationwide logistics system. Situated in Daegu, the center is expected to cover deliveries and incoming packages for North Chungcheong, South Chungcheong, North Jeolla and South Jeolla, Coupang said.

The company added the new fulfillment center will work more efficiently and better optimize delivery routes with the utilization of information technology solutions.

Coupang said the new fulfillment center is expected to create more than 2,500 jobs in the area and generate growth in related industries.

The company also believes the facility will also provide new business opportunities for small- and medium-sized companies in Daegu.

“Thanks to the support from Daegu city government, the Land Ministry and the Industry Ministry to create a good managerial environment, we are constructing a fulfillment center that will help us provide a better rocket delivery service for more customers,” Kim said in a statement.

“Coupang will continue investments like this in the future to create more jobs and contribute to the local economy.”

“Coupang’s largest fulfillment center being built in Daegu is meaningful itself, but this is just the very beginning of collaboration between Coupang and the Daegu city government,” Kwon said in a statement.

“We will continue looking into more collaborative projects in various areas like enhancing logistics systems and implementing autonomous driving in deliveries through use of artificial intelligence.”

BY KO JUN-TAE [ko.juntae@joongang.co.kr]