The South Korean government recently announced the establishment of a corporate entity in Vietnam, named K-UPA, with the aim of establishing a logistics center in the Southeast Asian nation to support small and medium-sized enterprises (SMEs).
The launch of K-UPA is the fruit of the efforts by the South Korean Ministry of Oceans and Fisheries, in collaboration with the state-run Ulsan Port Authority, to establish the center in Dong Nai, located in southern Vietnam. This initiative aims to assist Korean companies in storing goods under controlled room or low temperatures.
In partnership with the Korea-based logistics firm KCTC, the project is estimated to cost USD 14.3 million and involves the construction of a 12,000-square-meter center capable of storing 4.3 million pallets of goods.
The Ulsan Port Authority holds an 80% stake in the project, with the Vietnamese arm of KCTC holding the remaining 20%. The center is expected to significantly enhance the export competitiveness of Korean firms operating in the Southeast Asian region.
The center is slated to commence preliminary operations in December 2024, with full services expected to begin by July 2025. It will offer discounts of approximately 10 to 15% for Korean SMEs.
With the new logistics center in Southeast Asia, the South Korean government expects to boost corporate investment in research and development (R&D) projects and setting new records for financing exporters in 2024 to boost exports to the region.
(Source: Korea Times)
