⛽ Read this article to find out!

  1. Do you know who initiated the first convenience store drone logistics in Korea? The answer is GS25. Behind this initiative was a national project conducted in collaboration with the Ministry of Trade, Industry and Energy and GS Caltex, which operates a network of gas stations. You might wonder how gas stations, drones, and logistics come together in such an unexpected combination, right? It turns out there are four compelling reasons why gas stations are a perfect match for drone logistics. An official from GS Caltex, responsible for new business and overseeing the drone project, shares in detail the background, business design, and demonstration process of how gas stations came to meet drones and logistics.
  2. GS Caltex is serious about 'logistics.' Although this content focuses on drone logistics, GS Caltex has been involved in various logistics projects, such as setting up IKEA pickup points at gas stations and transforming gas stations into urban logistics centers since November last year. In fact, this isn't just a story about GS Caltex. All four major oil companies have had some involvement in logistics-related businesses, big or small. Why is that? We can understand the reasons from the perspective of the oil companies.
  3. When it comes to drone logistics, there's always this question: Is it really viable as a business? GS Caltex has also faced this question and conducted studies on various domestic and international drone logistics cases. The challenge was that the examples of commercialization in the United States didn't quite fit with Korean culture. Eventually, GS Caltex opted for this model. You can find out what GS Caltex's envisioned drone logistics business model is.
  4. Nevertheless, logistics at gas stations is challenging, a fact recognized by GS Caltex. The article outlines what needs to be addressed for gas station logistics to move beyond commercialization and become more active. Despite the challenges, the reasons why GS Caltex, among other oil companies, continues to pursue the challenge of gas station logistics can also be discovered.

CHAPTER 1
Are Gas Station Owners Wealthy?

There was a time when owning a gas station meant you were considered a significant local magnate. Cars were scarce, and gas stations were not as ubiquitous. Additionally, the supply of petroleum products was controlled by the government, making gas stations crucial energy supply points in their regions.

However, this notion has long become outdated. A quick search of recent articles reveals an increasing number of gas station closures, with some even being left inoperative due to the high costs of shutdown.

So, why are gas stations facing hardships? To understand this situation better, a brief explanation of the domestic oil retail market structure is necessary. South Korea's oil retail market consists of 'oil refiners', who import crude oil to process and supply products, and 'gas stations', which sell these products to customers. Directly operated gas stations by oil refiners make up about 10% of the market, with the remaining 90% operated by individuals or franchises.

Despite the dominance of four major oil companies (SK Energy, GS Caltex, S-Oil, HD Hyundai Oilbank) in the domestic petroleum distribution market, price information is highly transparent. Anyone can access Opinet, run by the Korea National Oil Corporation, to check the supply prices of individual oil companies and the daily selling prices at gas stations nationwide. As these prices are linked to international fuel trading prices, the profit margin for oil refiners in the domestic market is limited. With the number of gas stations close to free competition, and selling prices publicly available, the expected profits for gas station operators are also limited. With shrinking revenue streams and rising operational costs, including labor costs, the industry's difficulties have been compounded.

In response, oil companies have begun exploring ways to utilize their gas station networks for other business purposes. The first alternatives considered by oil refiners were the introduction of EV (electric vehicle) charging capabilities and the construction of hydrogen refueling stations.

For EV charging stations to be introduced at gas stations, amendments to the Dangerous Goods Safety Management Act were necessary to relax the distance between EV chargers and fuel dispensers. Additionally, simple installation of EV chargers was not enough for commercialization, necessitating the development of business models utilizing EV chargers for advertising revenue and ancillary space utilization, such as cafes.

In this context, the future-oriented gas station model presented by GS Caltex in 2020 is the 'Energy Plus Hub SamBang' seen at the intersection near Sinnonhyeon Station. It features ultra-fast charging facilities, advertising monitors, café spaces, and state-of-the-art car wash facilities. GS Caltex is also actively pursuing the establishment of hydrogen refueling stations, with the 'Gangdong Hydrogen Station'—where gas, LPG, and hydrogen refueling stations are bundled together—as a prime example.