AliExpress, a Chinese e-commerce company, is reportedly planning to invest more than $1 billion to expand its market presence in South Korea.
According to AliExpress’s parent company, Alibaba, they submitted a business plan to the S. Korean government on Mar. 14, outlining their intention to invest $1.1 billion over the next three years to grow their business in Korea.
The proposed business plan includes investing $200 million to establish a 180,000㎡ integrated logistics center in Korea this year. This facility will be the largest single facility of its kind in Korea, equivalent to 25 soccer fields.
Logistics center is the part of the supply chain that involves transporting customer orders and shipments, storing inventory in an e-commerce warehouse, packing boxes, and delivering orders on schedule.
Additionally, the plan involves investing $100 million to support the global sales of Korean sellers.
Alibaba has also included plans in its business proposal, which involves spending $7.5 million on intellectual property protection, $75.8 million on consumer protection, and another $75.8 million to support Korean sellers.
They plan to establish a sourcing center to discover excellent Korean products and intend to open a global sales channel in June that will serve as an export platform.
