BGF Retail Begins Construction on Largest Logistics Center in Busan

Busan, South Korea - BGF Retail, the operator of South Korea’s largest convenience store chain CU, has officially begun construction on what is set to become the country’s largest logistics center for the convenience store industry. The groundbreaking ceremony took place on September 3, 2024, in Busan, marking a significant milestone in the company’s ambitious expansion and modernization efforts.

The ceremony, held at the Busan International Industrial Logistics City in the Gangseo-gu District, saw the participation of prominent figures such as BGF Group Chairman Hong Seok-joh, BGF Retail Vice Chairman and CEO Hong Jung-kook, and Busan Mayor Park Heong-joon. This event underscores BGF Retail's commitment to strengthening its logistical capabilities and supporting regional economic growth.

BGF Retail is investing approximately 220 billion KRW (about $165 million USD) into this project, which will cover an extensive area of 38,000 pyeong (approximately 125,000 square meters). The logistics center will be twice the size of BGF’s current central logistics hub and is expected to feature cutting-edge automation systems that will enhance efficiency and accuracy in the distribution process.

The new logistics center will integrate advanced automated systems to streamline the sorting and distribution processes, catering specifically to the needs of the Yeongnam region’s CU stores. Moreover, this facility is envisioned to function as a key export hub, supporting BGF Retail’s international operations in countries such as Mongolia, Malaysia, and Kazakhstan.

Aligned with South Korea's green energy initiatives, the logistics center will include solar power generation systems capable of producing up to 3,900 MWh annually. This renewable energy effort is part of BGF Retail's broader ESG (Environmental, Social, and Governance) strategy, which also includes significant contributions to the local economy through the creation of approximately 800 jobs.

BGF Retail, which started as a joint venture in 1989 and launched its own CU brand in 2012, has grown into South Korea's leading convenience store operator with over 15,000 stores nationwide. The company has also expanded its footprint internationally, with CU stores now operating in Mongolia, Malaysia, and soon in Kazakhstan. BGF Retail is known for its commitment to corporate social responsibility, highlighted by programs like CU Sprout Store, which supports underprivileged entrepreneurs, and partnerships with organizations like UNICEF​.

Hong Seok-joh, Chairman of BGF Group, stated, “This logistics center represents a cornerstone in our strategy to not only lead the convenience store industry in South Korea but also to expand our influence and operations on a global scale.” Mayor Park Heong-joon added, “The construction of this facility is a significant step towards establishing Busan as a global logistics hub, and we are proud to support BGF Retail in this visionary project.”

The Busan logistics center is expected to be operational by late 2026, positioning BGF Retail at the forefront of logistical innovation within the convenience store industry.