Lotte Global Logistics is establishing a logistics branch in the Netherlands to secure local logistics systems in line with Korean food exports to Europe. Following the opening of iHerb’s fulfillment center in Texas last year to strengthen its North American market presence, the company is accelerating business expansion this year by targeting the European market along the “ramen road.”
According to industry sources on the 15th, Lotte Global Logistics is pursuing the establishment of a local branch in the Netherlands with a target of the first half of this year. The company plans to enter the market by establishing a branch of its existing Hungarian subsidiary in the Netherlands.
Lotte Global Logistics’ expansion into the Netherlands aims to capture logistics demand from Korean food companies. The company recently won a contract for Samyang Foods’ maritime shipping logistics, enabling it to support Samyang Foods’ overseas growth, including the strong export performance of Buldak Bokkeum-myeon (spicy fire noodles).
Demand for Korean food is growing in Europe, particularly riding on the popularity of K-culture. Food trucks specializing in K-food are gaining popularity locally, reflecting strong interest in Korean cuisine. The Netherlands is considered the “gateway to Europe” as home to the Port of Rotterdam, Europe’s largest port by cargo volume. Following Samyang Foods, Nongshim has also established a subsidiary in the Netherlands to target the European market, increasing logistics demand from these companies.
“We initially targeted the first quarter, but the establishment was somewhat delayed due to the outbreak of war in the Middle East. We will complete the establishment within the first half and expand our overseas business,” a company official said. “Once the Netherlands branch is established, detailed investments needed for local logistics operations, including warehousing, will gain momentum.”
Lotte Global Logistics is turning to overseas markets because it has determined that the domestic logistics market has reached saturation. CEO Kang presented “global” as the top business strategy at last month’s shareholders’ meeting. “We will build a solid business foundation in the global market and expand our logistics territory,” Kang said.
Lotte Global Logistics internally assesses that it has significant room for global business expansion as its overseas business ratio remains smaller than competitors. The company’s overseas business revenue accounted for 11.7% last year with 18 overseas subsidiaries, compared to competitor CJ Logistics’ overseas revenue ratio of 32.4% and 115 overseas subsidiaries.
Meanwhile, in Vietnam, Lotte Global Logistics will complete the Dong Nai integrated logistics center, which broke ground last year, in late next month and launch full-scale local logistics operations. The Dong Nai integrated logistics center spans 26,167 square meters and is equipped with cold chain logistics facilities including refrigeration and freezing capabilities. Once completed, Lotte Global Logistics will be able to provide one-stop total logistics services including import and export of fresh food, storage, and delivery. The company internally estimates the annual average growth rate of Vietnam’s local cold chain logistics market at over 20%.