China's Temu expands in South Korea with major logistics hub

By Kim Dong-young Posted : March 20, 2025, 14:02 Updated : March 20, 2025, 14:02
Logo of Temu shown on a laptop Getty Images via AP-Yonhap
Logo of Temu shown on a laptop/ Getty Images
 
SEOUL, March 20 (AJP) - Chinese e-commerce giant Temu has secured its first major logistics facility in South Korea, signaling a significant escalation in its expansion strategy just two years after entering the market.

According to industry sources, the company has signed a long-term lease for a sprawling distribution center in Gimpo near Seoul. The 165,000-square-meter facility — roughly the size of 23 soccer fields — features ten floors above ground and one below, equipped with both ambient and cold storage capabilities.

Strategically located near Incheon International Airport, Gimpo International Airport, and Incheon Port, the facility will provide Temu with streamlined access to South Korea’s capital region. Operations will be managed by Lotte Global Logistics.

This marks the first time a Chinese e-commerce company has established such a large-scale logistics presence in South Korea. The move follows Temu’s February announcement that it was actively recruiting local sellers for its open-market platform.

Industry analysts suggest that the facility will serve as a pivotal outpost for Temu’s efforts to penetrate the Korean market.

By reducing delivery times for low-cost Chinese products, the logistics hub could enable nationwide one- to two-day shipping and same-day delivery within the Seoul metropolitan area.

"By integrating budget-friendly Chinese goods with expedited delivery, Temu has the potential to disrupt the competitive landscape," said an industry insider.

Temu’s aggressive push into South Korea comes as it faces mounting challenges in the United States, where President Donald Trump’s anti-China policies have presented significant hurdles.

Initially launched in the U.S. in September 2022 as a subsidiary of NASDAQ-listed Pinduoduo Holdings, Temu has struggled under the policies of the second Trump administration, despite the U.S. being its primary market.
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