Coupang began procedures for the construction of a large-scale high-tech logistics base in Gwangju in partnership with the regional government, the firm said Friday.

Gwangju Mayor Lee Yong-seop and Coupang’s new business division head Park Dae-joon met Friday and signed a business agreement. Under the deal, the firm and Gwangju agreed to establish a mega-sized high-tech logistics center in the region and cooperate to boost the local economy and create jobs.

The nation’s leading e-commerce firm will establish a 174,326-square–meter logistics base for a total of 224 billion won ($188 million). This is the company‘s first time to build a room temperature logistics center and a refrigeration and frozen logistics center at the same time. Construction will begin in the first half of next year and is set to be completed in the first half of 2023. Around 2,000 jobs will be created.

The firm plans to introduce its own logistics software, a product management and worker traffic optimization system using artificial intelligence, eco-friendly packaging facilities and advanced logistics equipment at the new logistics center.

Through the high-tech logistics center, Coupang plans to provide its Rocket Delivery service -- that delivers products within 24 hours -- nationwide.

“Thanks to the efforts of regional governments and related ministries, we are able to provide better Rocket Delivery services to our customers through the logistics center.” said Coupang’s Park.

“We will make more efforts to set an example of win-win development with the local community by revitalizing the local economy and creating jobs.” 

By Shin Ji-hye (shinjh@heraldcorp.com)