Consumers' need for speed prompts more delivery companies to adopt 7-day schedules

Home > Business > Industry

Consumers' need for speed prompts more delivery companies to adopt 7-day schedules

Published: 05 May. 2025, 17:24

Audio report: written by reporters, read by AI

Hanjin delivery trucks are parked in front of Gwanghwamun Square in Jongno District, central Seoul, in this photo provided by the firm. [NEWS1]

The pandemic went away but not the habits that people picked up. Parcel delivery has more than doubled within the last five years, prompting logistics companies to ramp up delivery to meet the ever-growing demand.

The volume of parcel deliveries in Korea reached nearly 6 billion in 2024, more than double the number recorded five years earlier, as contactless transactions became routine in the wake of the Covid-19 pandemic.

The growing market has triggered a wave of competition among major logistics companies, with CJ Logistics, Hanjin and Lotte Global Logistics racing to adopt seven-day delivery schedules.

Korea handled about 5.96 billion parcel deliveries last year, marking a 15.6 percent increase from 5.15 billion in 2023, according to data from the Ministry of Land, Infrastructure and Transport and the Korea Integrated Logistics Association on Monday. Compared to 2.78 billion parcels in 2019, the figure represents a 114.3 percent jump as of 2024.

The parcel delivery industry has maintained annual growth rates exceeding 20 percent since 2020, when the pandemic normalized online transactions. The average number of parcels delivered per person crossed the 100 mark for the first time in 2023, reaching 100.4, and rose to 115.2 in 2024.

A logistics industry official attributed the spike in volume to the entry of Chinese e-commerce platforms into the Korean market.

“AliExpress and Temu ramped up their operations in Korea, which significantly boosted parcel traffic,” the official said.

“Local e-commerce firms have been rolling out paid subscription programs that include same-day delivery, early-morning delivery and free returns, all of which contributed to the rise.”

More competition, higher delivery demand

The explosive growth in e-commerce has led to heightened competition among logistics providers. CJ Logistics began seven-day delivery operations in January.

“Since the launch, we’ve seen a noticeable increase in new sellers, especially those dealing in food and consumer goods,” a CJ Logistics representative said.

Hanjin followed suit on April 27, launching a pilot seven-day delivery service. The company expanded its Sunday delivery coverage from the greater Seoul area to other major cities nationwide.

Lotte Global Logistics is also actively considering the move.

“If customers demand seven-day delivery, we plan to expand accordingly,” CEO Kang Byoung-ku said during a press briefing last month. “We’re strategizing around this and will act on it if customer demand is strong.”

Industry watchers say pressure from Coupang, which already offers seven-day delivery through its own logistics network, is driving the shift. Coupang’s Rocket Delivery service, which delivers items it purchases directly, has set a new standard for fast shipping. Competing e-commerce platforms and online sellers have pushed logistics companies to match those capabilities.

Unionized parcel delivery workers protest Hanjin Delivery's seven-day delivery schedule in front of the firm's headquarters in Jung District, central Seoul, on April 17. [YONHAP]

Negotiations needed with labor

Despite the push for seven-day delivery, labor relations remain a significant challenge. Hanjin’s labor union has opposed the pilot program, claiming the company launched it without proper consultation.

“We will not accept a seven-day work schedule unilaterally imposed by management,” the union said in a statement.

CJ Logistics also faced union resistance but eventually reached an agreement by ensuring a five-day workweek for delivery workers and designating official rest days.

“Customers now expect deliveries on weekends or as quickly as possible,” said Lee Jong-woo, a business professor at Ajou University. “It’s important for companies and unions to recognize these changing expectations and work together to find common ground.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK YOUNG-WOO [[email protected]]