Daiso to Build 600 Billion Won Logistics Center in Yangju, Targeting Completion in 2029

Supply to more than 800 stores in the Seoul metropolitan and Gangwon regions
Targeting daily processing capacity of 350,000 orders
Building an integrated online and offline logistics automation system

Asung Daiso, which operates Daiso, a fixed-price household goods retailer, plans to invest 600 billion won to build an integrated online and offline logistics hub in Yangju, Gyeonggi Province. The company aims to expand its logistics capacity in line with the growth of its stores and online mall, and to improve product supply and delivery efficiency through an automated system.

Asung Daiso said on October 27 that it held a groundbreaking ceremony for the Yangju Hub Center on October 26 at the Eunnam Industrial Complex in Yangju, Gyeonggi Province. The center is scheduled for completion in January 2029. Its operations are expected to create approximately 1,000 jobs.

Chairman Park Jeongbu of Asung Daiso Co., Ltd. (13th from right) and Yangju Mayor Jeong Deok-young (15th from right), along with other key attendees, break ground at the groundbreaking ceremony for the Yangju Hub Center, held on the 26th at the Eunam Industrial Complex in Yangju. Photo provided by Asung Daiso.

The Yangju Hub Center will be Asung Daiso's fourth hub center and the largest of its existing logistics centers. It will be built on a site measuring 111,600 square meters, with a total floor area of 206,102 square meters, and will have four above-ground floors and one basement level. Once completed, it will supply products to more than 800 stores in the Seoul metropolitan and Gangwon regions and handle up to 50,000 online orders a day for Daiso Mall.

The key focus of the investment is integrating online and offline logistics. Rather than operating separate logistics systems for stores and the online mall, Asung Daiso will adopt an omnichannel approach that uses shared inventory and logistics facilities. The strategy is to reduce duplicate inventory across channels, make better use of space and equipment, and lower the costs of inventory transfers and order processing.

To this end, the company will introduce automation equipment from Knapp, a global logistics automation company. The OSR (Order Storage and Retrieval) system, which handles product storage and dispatch, will be equipped with 478 high-speed shuttles and 46 lifts. It will be capable of processing 20,000 orders per hour. The system is designed to manage online and offline products together in a single shuttle rack to improve inventory management efficiency.

The center will also be equipped with GTP (Goods to Person), which automatically delivers products to workers, and ODS (Order Distribution System), which sorts and dispatches products according to order sequence. The goal is to boost logistics productivity by reducing the need for workers to move products and the burden of picking, while automating the order-processing process.

The Yangju Hub Center will also complement Asung Daiso's existing logistics network. The Namsa Hub Center serves the Seoul metropolitan and Gangwon regions, while the Busan Hub Center serves the Yeongnam and Honam regions. The Sejong Hub Center, scheduled to open in April 2027, will handle logistics for the Chungcheong region, the southern part of the Seoul metropolitan area, and Daiso Mall. Once the Yangju Center is completed, supply capacity is expected to expand, particularly in Seoul, northern Gyeonggi Province, and northern Gangwon Province.

Daiso's daily order-processing targets for each center are 230,000 orders for Namsa, 320,000 for Busan, 300,000 for Sejong, and 350,000 for Yangju. Through the construction of new centers and the introduction of automation equipment, the company plans to meet growing online and offline logistics demand and establish a stable foundation for product supply.

Asung Daiso also expects the logistics center to benefit the local economy. In addition to direct employment, the company anticipates increased local spending as the number of workers and visitors grows, as well as expanded business activity among logistics and distribution companies and partner firms.

Asung Daiso Chairman Park Jeongbu said, "We are beginning construction of the Yangju Hub Center, our fourth logistics center, to build a foundation that will support the continued expansion of our business. We will grow together with the local community by hiring local talent and working in mutually beneficial partnerships with local businesses."

This content was produced with the assistance of AI translation services.