Asung Daiso has begun construction of a 600 billion won ($453 million) logistics center in Yangju, Gyeonggi Province, its largest to date, as the South Korean fixed-price retailer expands its distribution network to meet growing demand from stores and online shoppers.
The company held a groundbreaking ceremony Monday at the Yangju Eunnam General Industrial Complex, attended by about 400 people, including Asung Daiso Chairman Park Jeong-bu and Yangju Mayor Jeong Deok-yeong.
Scheduled for completion in January 2029, the center will span 206,102 square meters across four above-ground floors and one basement level.
Once operational, it will supply about 800 Daiso stores across the Seoul metropolitan area and Gangwon Province, while handling up to 50,000 daily orders from Daiso Mall, the company's online shopping platform.
The facility will have a maximum processing capacity of 350,000 orders per day, exceeding the Namsa center's 230,000, also in Gyeonggi Province, and the Busan center's 320,000. A separate logistics hub in Sejong, set to open in April 2027, will handle up to 300,000 daily orders.
A key feature of the Yangju center is its integrated inventory system, which will manage online and offline orders through a single automated network. The company expects the system to reduce duplicate storage, lower operating costs and speed up order fulfillment.
The facility will use automation equipment from logistics technology company Knapp, including 478 high-speed storage shuttles and 46 lifts capable of processing up to 20,000 orders per hour. Automated picking and sorting systems will further streamline warehouse operations.
Asung Daiso expects the project to create about 1,000 jobs and generate additional economic activity in the surrounding area.
"We are breaking ground on our fourth logistics center to establish the infrastructure needed to support our continued business expansion," Park said. "We will work to recruit local talent and cooperate with regional businesses so the Yangju hub can grow alongside the local community."
yejinlim@heraldcorp.com
