Further consolidation in Korean express market
Consolidation has intensified in the Korean express market with this week’s acquisition by Hanjin of rival Shinsegae, making it into the new domestic market leader ahead of Korea Express and Hyundai.
Hanjin spent 30 billion won (EUR 18.7 million) to buy Shinsegae Dream Express, part of the Shinsegae retail group, the Yonhap news agency reported. Shinsegae Dream Express made a loss of 3.3 billion won (EUR 2 million) on sales of 96.7 billion won (EUR 60 million) last year.
The acquisition would put Hanjin Express ahead of Korea Express, which ended 2007 with sales of 293 billion won (EUR 182 million), and Hyundai Express which had sales of 286 billion won (EUR 178 million). The next largest operator is CJ GLS, with revenues of 184 billion won (EUR 115 million). The four market leaders are estimated to have about 60% pct of the domestic parcel delivery market.
Earlier this year UPS bought full control of its international express joint venture with Korea Express by acquiring the latter’s 40 pct stake in the venture. UPS said the transformation of the joint venture to a wholly-owned subsidiary would allow it to grow its business in Korea and better serve its customers in a key market.
Consolidation has intensified in the Korean express market with this week’s acquisition by Hanjin of rival Shinsegae, making it into the new domestic market leader ahead of Korea Express and Hyundai.
Hanjin spent 30 billion won (EUR 18.7 million) to buy Shinsegae Dream Express, part of the Shinsegae retail group, the Yonhap news agency reported. Shinsegae Dream Express made a loss of 3.3 billion won (EUR 2 million) on sales of 96.7 billion won (EUR 60 million) last year.
Hanjin Express, the parcel delivery unit of the Hanjin shipping and logistics group, which includes Korean Air, was previously number three in the Korean domestic express delivery market with revenues of 252 billion won (EUR 157 million). The acquisition would thus give it annual revenues close to 350 billion won (EUR 218 million). Hanjin Express cooperates with Korean Air and the Global Distribution Alliance (GDA) for international parcels, according to website information.
The acquisition would put Hanjin Express ahead of Korea Express, which ended 2007 with sales of 293 billion won (EUR 182 million), and Hyundai Express which had sales of 286 billion won (EUR 178 million). The next largest operator is CJ GLS, with revenues of 184 billion won (EUR 115 million). The four market leaders are estimated to have about 60% of the domestic parcel delivery market.
Earlier this year UPS bought full control of its international express joint venture with Korea Express by acquiring the latter’s 40 pct stake in the venture. UPS said the transformation of the joint venture to a wholly-owned subsidiary would allow it to grow its business in Korea and better serve its customers in a key market.
