BGF Retail, operator of convenience store chain CU, held a completion ceremony Wednesday for its 260 billion won ($191 million) logistics center in Busan, which it says is the largest facility of its kind in Korea’s convenience store industry.
BGF Group Chairman Hong Seok-jo and BGF Retail Vice Chairman Hong Jung-guk attended the ceremony, along with Busan Mayor Jeon Jae-soo and other company and local government officials.
The center occupies a 47,187-square-meter site in the Busan International Industrial Logistics City in Gangseo-gu, with a total floor area of 128,073 square meters.
BGF Retail agreed with the Busan city government to build the facility in 2021 and broke ground in 2024. Construction was completed July 14 after about two years.
The refrigerated section is already operating, while the ambient-temperature section is scheduled to begin operations by year-end.
The center will streamline deliveries to CU stores across Busan and the broader Yeongnam region that also includes Daegu, Ulsan and North and South Gyeongsang provinces. Its proximity to Busan New Port will support the company’s import and export operations involving Mongolia, Malaysia, Kazakhstan and Hawaii.
BGF Retail plans to develop the facility into a global logistics hub connecting its domestic and overseas operations.
The center uses automated systems including shuttle-based storage and retrieval, automatic labeling and digital picking. The company said the technology would improve handling and sorting efficiency while allowing the facility to respond flexibly to seasonal and daily fluctuations in shipment volumes.
Automation will also reduce repetitive, physically demanding tasks for employees. The Ministry of Land, Infrastructure and Transport has granted the facility preliminary Grade 1 certification as a smart logistics center.
Solar panels at the site can generate up to 2,700 megawatt-hours of electricity annually. BGF Retail also expects the center to create jobs and contribute to the local economy.
“The Busan logistics center will strengthen CU’s logistics capabilities and ensure a stable supply of products,” Hong said. “More efficient operations will also enhance the competitiveness of our franchisees.”
jyoungseon8@heraldcorp.com
