Parcel boxes move along a conveyer belt at a logistics center in Seoul on Jan. 31, 2021. (Yonhap)
SEOUL, March 10 (Korea Bizwire) — In the midst of the rapid growth of the e-commerce market resulting from the COVID-19 pandemic, the demand for logistics warehouses that are needed for storing, loading, unloading and sorting cargo is growing at a healthy pace.
The online real estate information provider Real Estate 114 analyzed the cases of approval by local administrations for the period from 2016 to 2020.
The analysis showed that there were 869 approvals for logistics warehouse companies during the period, about 3.4 times higher than those for large-scale stores (252 cases), including department stores and shopping centers.
In 2020, in particular, when the spread of the coronavirus began, cases of approval for logistics warehouse companies marked a robust year to year growth rate of 60 percent, reaching 255, the highest on record since 2016.
In contrast, cases of approval for large-scale stores fell by 21.8 percent from 55 cases in 2019 to 43 cases last year.
“These figures indicate that along with the popularity of the non-face-to-face consumption trend, changes are looming in the demand for distribution and retail space,” said Yeo Kyung-hee, an analyst at Real Estate 114.
Ashley Song (ashley@koreabizwire.com)
