BGF Retail builds South Korea's largest convenience store logistics center in Busan

BGF Retail has completed the largest logistics center in South Korea's convenience store industry, located in Busan. The facility is set to reshape the delivery network across Busan and the broader Yeongnam region and serve as a central hub for supplying products to CU convenience stores both domestically and overseas.

BGF Group Chairman Hong Seok-jo said at the center's completion ceremony Wednesday that the Busan logistics center is "an important stepping stone that elevates CU's logistics competitiveness and further solidifies our standing as a leader in the domestic convenience store industry." He added that it "will strengthen the competitiveness of franchisees through stable product supply and efficient logistics operations, while also serving as a growth engine for CU's expansion beyond the domestic market and into global markets."

The ceremony was attended by BGF Retail Vice Chairman Hong Jeong-guk, BGF Retail Strategy and Innovation Division Head Oh Jeong-hu and other BGF Group officials, as well as Busan Mayor Jeon Jae-soo, Gangseo-gu District Mayor Park Sang-jun and Busan-Jinhae Free Economic Zone Authority head Park Seong-ho.

The center stands on a 47,187-square-meter site in Gurang-dong, Gangseo-gu, within the Busan International Industry and Logistics City. With a total floor area of 128,073 square meters, it is the largest logistics facility in BGF Retail's infrastructure network. The total investment came to 260 billion won ($192 million).

BGF Retail signed an investment agreement with the city of Busan in 2021 and broke ground on the center in 2024. The refrigerated section is already in operation, and the company plans to bring the ambient-temperature section online by the end of this year.

The center is equipped with smart logistics systems including a shuttle-based automated storage and retrieval system, auto labelers and a digital picking system, boosting efficiency in product intake, output and sorting while allowing the facility to handle fluctuations in cargo volume by season and day of the week. It has also received a first-grade preliminary certification as a smart logistics center from the Ministry of Land, Infrastructure and Transport.

BGF Retail built the center to manage its growing number of stores and product lines. Beyond domestic logistics, the facility will also handle international import and export operations, supporting the expansion of CU's overseas business — including in Mongolia, Malaysia, Kazakhstan and Hawaii — through the Port of Busan.

The Busan logistics center is also equipped with solar power generation facilities capable of producing up to 2,700 MWh of electricity annually. BGF Retail said it expects the center's operation to contribute to job creation and economic revitalization in the Busan region.