Most global logistics firms in S. Korea to raise investment

By Nam Kwang-sik SEOUL, May 18 (Yonhap) -- Nearly seven in 10 global logistics companies operating in South Korea plan to increase their investment here in the future since they are optimistic about the local market, a poll showed Wednesday. According to the survey of 220 global logistics firms by the Korea Chamber of Commerce and Industry, 67.5 percent of the respondents said that they will push for growth strategy such as the expansion of facility investment in the local market. Only 2.5 percent of the companies, including DHL Global Forwarding Korea Co., said that they will decrease their capital spending in the country, while none of them will pull out of the local market. In regard to the future outlook for the local market, 70.8 percent of the companies polled said the market will expand though the growth rate may not be high. The companies predicted the growth of the local logistics market will rise by about 10 percent over the next five years, the chamber said. More than 88 percent of the companies entered the South Korean logistics market after 1990, it said. "The outcomes of key factors of the local logistics market will determine whether the market gains a competitive advantage over rival countries such as Japan and China," the KCCI said.