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IKEA |
[Alpha Biz= Reporter Kim Sangjin] IKEA has decided to cancel its plan to build the largest logistics hub in Asia in Pyeongtaek, Gyeonggi Province. On December 16, the company announced that it would not proceed with the construction of the complex logistics center on a 102,000 square-meter site in the Poseung district of Pyeongtaek. Instead, IKEA has opted to sell the land, valued at approximately 55.5 billion Korean won.
The original plan was developed in 2020 when IKEA signed an investment agreement with Gyeonggi Province, under the leadership of then-Governor Lee Jae-myung. The agreement aimed to establish the largest logistics center in Asia, covering an area equivalent to 14 football fields. At that time, a ceremony was held to attract investments, with five foreign companies, including IKEA, participating. The provincial government had projected an investment of 7.5 trillion Korean won and the creation of around 7,000 jobs.
IKEA Korea stated that it had been undergoing internal procedures to establish a multi-purpose logistics center in Pyeongtaek to offer a convenient shopping experience to many people. However, the company cited the rapidly changing retail environment, driven primarily by e-commerce, and the need for a more conservative investment approach in line with its global strategy as the reasons for reassessing the project.
IKEA also clarified that the cancellation of the logistics hub was unrelated to any recent political developments in South Korea. The company emphasized that the decision had already been made prior to the current situation and was included in the 2024 fiscal year (September 2023–August 2024) report.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
