South Korea’s “National Smart Logistics Strategy” — Lee Jae-myung’s Vision and the Reality of Execution

Logistics & Supply Chain Strategy Briefing

STREAMLINE: South Korea’s “National Smart Logistics Strategy” — Lee Jae-myung’s Vision and the Reality of Execution

(June 9, 2025)

Announcing a policy is one thing—executing it is another. Especially when it involves physically relocating government bodies or redesigning entire logistics hubs, the cost of organizational resistance and political friction can be substantial. That’s why focusing first on lower-friction, high-impact strategies—such as launching a T-commerce platform or building smart logistics hubs—may be the most effective path forward for the Lee Jae-myung administration.

South Korea’s new president is already redrawing the nation’s logistics and mobility map. On his fifth day in office, Lee Jae-myung’s government unveiled a blueprint for transforming public logistics infrastructure, centered around the southern port city of Busan. Key plans include relocating HMM (Korea’s largest shipping line) and the Ministry of Oceans and Fisheries to Busan, building a network of inland smart ports, launching a T-commerce channel for small merchants, and expanding urban UAM/autonomous mobility pilot cities.

But it’s not just about direct logistics policies. New regulations around platform dominance, labor protection, and ESG mandates are also reshaping logistics business models—indirectly but powerfully.

❶ Point of View | What’s Changed?

“Logistics is national strategy.” Lee Jae-myung is shifting Korea’s logistics core to Busan—physically and structurally.

ㆍShipping & Ports: Relocation of HMM and Ministry of Oceans to Busan → Core of the “Ocean Capital” vision

ㆍInland Logistics: Establishment of 10+ smart inland logistics hubs (Inland Ports)

ㆍT-Commerce: Launch of a public e-commerce channel for SMEs, linked to existing public platforms

ㆍSmart City Mobility: Expansion of autonomous driving, UAM (urban air mobility), and integrated MaaS platform

ㆍGovernment Structure: Decentralization from Seoul–Sejong to Busan maritime cluster

❷ Inside the Move | Execution Status

The administration is already moving—but facing real-world constraints.

ㆍHMM & Ministry Relocation: Strong resistance from public servants (86% oppose move), HMM labor union fears efficiency loss

ㆍSmart Hubs: Reformatting of existing terminals + digital platform integration is under review

ㆍT-Commerce Platform: Design underway in collaboration with public platforms like Post Office Shopping & Home Shopping

ㆍUAM/MaaS Trials: Pilot city partnerships being coordinated by MOLIT (Ministry of Land, Infrastructure and Transport)

ㆍExecution Dynamics: Momentum during honeymoon phase, but National Assembly cooperation needed for major budget-backed policies

❸ Business Playbook | Strategic Roadmap

❹ Market Impact | How Is the Market Responding?

ㆍShipping Industry: Hopes for regional revitalization; worries about cost and operational fragmentation

ㆍBusan Region: Surge in investment sentiment around logistics and property

ㆍSMEs: Positive outlook on digital sales channels—but traffic and conversion rates are key

ㆍMobility Tech Firms: Anticipating regulatory clarity and open data ecosystems

ㆍCivil Service: Resistance to relocation remains high; staffing disruption expected

ㆍForeign Platforms: ESG-readiness may help them gain market share as regulations tighten

❺ Competitor Matrix | Stakeholder Dynamics

❻ Beyond the Numbers | Execution Realities

🔺 Pain Points

Relocation Risks: Internal resistance, HR losses, inter-ministry coordination issues

Labor & Safety: Stronger minimum wage, safety mandates, and unionization rights add cost

Platform Regulation: Capping fees and banning unfair practices may hit last-mile margins

💡 Success Conditions

T-Commerce: Needs compelling content and platform traction

Smart Hubs: Must integrate seamlessly with national freight networks

UAM/Autonomous: Requires robust pilot data, clear operational frameworks

ESG Compliance: Carbon-reduction facilities (e.g. RE100) will be mandatory in future facility builds

Editor’s Note: The Lee administration’s regulatory stance on platform governance, labor rights, and sustainability may reshape logistics profitability models just as much as direct infrastructure policy.

❼ Summary Insight | What You Need to Know

Lee Jae-myung is redefining logistics as a national digital infrastructure strategy, not just a delivery function.

In the short term, policies like T-commerce and inland logistics hubs will deliver quicker wins with less friction.

Long-term success depends on managing organizational resistance, inter-agency alignment, and ESG compliance.

Execution, not announcement, will determine whether this logistics agenda becomes a legacy—or a liability.

📊 Policy Execution Probability Matrix

© 2025 BEYONDX. All rights reserved.
This is part of the STREAMLINE: Beyond Logistics Playbook by BEYONDX series.