동북아경제 중심국가 건설

Location Strategy of Building a Logistics Hub in Korea

This paper discusses two specific issues to draw policy implications regarding location strategy to build a business and logistics hub in Korea: location determinants of plants and logistics centers of global firms, and analysis of competitiveness of sub-nation entities. This paper suggests that Korea should carry out comprehensive, fundamental reforms as follows: First, in prioritising development, it is most desirable to first concentrate on developing the Capital Region and Kwangyang and Pusan ports to full capacity, and then to develop international logistics function in other parts of the country. Consequently, current policy regulations on the Capital Region should be re-evaluated in order to enhance the competitiveness of Korea's industries and to be more effective at inducing foreign investment. Second, Korea should make systematic and continuous efforts to have well-developed logistics infrastructure such as ports, airports, information and communication facilities, and distribution facilities. Free trade zones must also be actively developed to offer comprehensive logistics and production capabilities. Third, Korea urgently needs to improve the quality of logistics service providers, and to develop a solid workforce of logistics professionals. Finally, Korea needs a detailed national strategy and action plan on a clear vision with relevant government bodies working closely for coordination.