Port & Logistics Research DivisionDirector GeneralSung Woo Lee

Establishes a 10-yr basic plan every 5 yrs as prescribed by Basic

Logistics Policy Act

Reduces logistics cost, improves national industrial competitiveness,

creates value-added logistics and increases job demands by building

up the efficient national logistics system.

Enhances the competitiveness at home and abroad by organically

responding to global, national and regional economic environment

changes

Systemized logistics plan is required to improve the national competitiveness

Evaluates the current logistics system, industrial competitiveness & response level by diagnosing environmental & situational changes

Diagnosis & evaluation of the logistics policy implementation status over the last 10 year

Maximizes the benefits of completed projects by assessing the performance & analyzing the implementation status of existing plansDecides whether to continue or improve uncompleted projects by analyzing causes

Finding ways to improve through performance review & self-examination

Finds a new policy direction that replaces previous vision & goals &

specifies implementation plans based on policy keywords of the

upcoming 10 years.

Draws new vision & goals of logistics policies & Discovers strategies & projects to implement

Diagnostics! Evaluation! Analysis! Outlook! And Improvement!

National Logistics Basic Plan Revision (2011~2020), 2011, Ministry of Land, Transport &Maritime Affairs

Legal basis : Article 11, Basic Logistics Policy Act.

National Logistics Basic Plan(2001~2020), 2001, Ministry of Construction & Transportation

Legal basis: Article 3, Logistics Promotion Law

National Logistics Basic Plan Revision (2006~2020), 2006, Ministry of Construction &Transportation

Legal basis : Article 3, Logistics Promotion Law

National Logistics Basic Plan Revision(2016~2025), 2015 Legal basis : Article 11, Basic Logistics Policy Joint implementation of Ministry of Oceans & Fisheries &

Ministry of Land, Infrastructure and Transportation

Continuous planning since the governance changes in 2001

National Logistics Basic Plan

Shipping HarborMaritime

Affairs

• Shipping industry’s long-term development plan

• Basic plan of crew supply and demand

Maritime Transport Act

Sea Affairs Act

• Basic harbor plan(Trade port/Costal port)

• Port hinterland development master plan

Harbor Act

•Maritime safety basic plan

Maritime Safety Act

Int’l Logistics

MLIT

Rail roads, Roads, Aviation, Inland

Logistics Facilities etc.

MOF

Dualized logistics governance is dealt with integrated plan

Review on policy Implementation directions

/Comparative analysis of implementation plans

Change & Outlook of domestic/int’l logistics

environment

SWOT analysis of domestic

logistics system

Analysis/evaluation of implementation status

of existing plans

Proposal of national logistics vision

& goals

Establishment of implementation

strategies & action plans

Establishment of performance management

methods

Organized cooperation between the two research agencies across the entire process including statusanalysis, strategy establishment & project discovery(Build up co-work system within & between agencies)

Systemized establishment of vision, goals & strategies through advice of management strategy experts

Policy improvement by having research led by expert researchers depending on major policy element

Move to next phase after sharing & adjusting research results of each phase through joint workshop atevery phase

Enters into the int’l logistics market to respond to changes of future logistics mapStrengthens the competitiveness of logistics industry by making market advanced and performing regulatory innovationDiscovers smart logistics tech dealing with future and raises information-oriented business

Realizes the efficient logistics by establishing land/sea/air integrated logistics systemSecures soft-infra for offering high-quality logistics serviceRealizes the advanced logistics system by enhancing green logistics and logistics security

Realization of global logistic powerhouse leading creative innovation and sustainable growth

Global logistics powerhouse leading the 21st low-carbon green growth

Creation of new growth engineEnhanced capability to respond to future

Continuous economic feasibility support

Leading low-carbon green growthAdding high-value to logistics

industry

• Driven by private, backed up by gov’t

• Job creation, life-support logistics• Efficiency and value-added• Eco-friendly, security and safety

Vision Achieves the National Prosperity through logistics

GoalTransition of logistics industry trend from services to adding value

Int’l logistics industry system moving from quantitative growth to qualitative

growth

Strategy

Nurturing business/Creating market/

Globalization/Creating added value

Improving service for public’s welfare, quality of life(employment/logistics

service/HR development/quality of life)

Activating logistics infra & investment attraction

Future response & Eco-friendliness

(Sustainable tech)

Safety first, regulatory innovation & market

normalization (including maritime affairs)

Vision, goals, strategies and specific implementation plans

Establishment of national logistics basic plan (1yr)

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Establishment of local logistics basic

plan (1yr)

Deliberation→ Decision→Notificati

on

Deliberation→ Decision→Notification

Plan & Implementation

projects

0 12 24National Level

When notified as national plan, local plans are devised and implemented (2-yr required)

Local Level

World’s 2nd best airport, 6th largest harbor, LPI 23thWorld’s 9th largest freight volume, 5th bottoms

Improvement of national logistics competitiveness

Accounting for 10% of national GDP(shipping 3%), 5th largest national income (shipping)Support for the growth of national key infra industries such as shipbuilding, steel, automobile, electronics

Contribution to national wealth

No. 1 in the E-commerce market growth rate

Commercialization of block chain, IoT, AI, VR & various technologies

applied in logistics

Foundation for convergent growth connected with 4th industrial technology

Contribution to improve the national environment by securing harbor-based eco-friendly logistics system

Establishment of eco-friendly and safe logistics system

New construction of Busan New Port

• Ongoing project since 1995, until 2020

• To be a Hub Port of the Northeast Asia

In 2016, ranked the world top 6 cont’ port

Construction of World-class infrastructure

Planning to

Construct a LNG Bunkering Terminal

Keep dredging work to provide sufficient depth for ULTRA Large Vessel

Redevelop the North Port of Busan(Old Port) as a People Friendly Port

Response to internal/external environmental changes with redevelopment of harbor and construction of LNG bunkering terminal

Improvement of national living environment by establishing eco-friendly logistics system

Strategy/Specific Targets Performance Index Unit Dept. 10yr 15yr 20yr 25yr

1 Expansion into int’l logistics market responding to logistics map changes in the future

1.1Increase of overseas sales of

logistics company

Share of overseas sales of

integrated logistics company% Policy 19.80 22.0 26.3 31.6

1.2 Building global networkAvg # of overseas bases of

integrated logistics companyRegion Policy 5.97 9.97 12.71 16.80

1.3Raising global logistics

company

Expert logistics company with a

sales of 3trillon or more

Compa

nyPolicy 1 2 4 5

1.4 Nurturing Korean style GTO # of Korean style overseas GTO ea

Harbor

logistics

planning

11 12 14 17

1.5 Building global network# of North Pole Route use in

total by logistics company ea

Maritime

policy- 3 15 30

2 Strengthening competitiveness of logistics industry through market advancement and regulatory innovation

2.1Quality improvement of

national logistics serviceLPI Point Policy 3.7 3.67 3.94 3.96

2.2Reduction of national logistics

cost

National logistics cost rate

against GDP% Policy 10.4 9.8 9.0 8.2

2.3 Expansion of logistics market Third-party logistics use rate % Policy 52.0 60.0 70.0 73.6

2.4Increase of productivity of

logistics company

Operation profit rate of

logistics company % Policy 3.5 5.0 5.80 6.82

2.5

Improvement of

competitiveness of SM-sized

logistics company

Sales of company with 300

employees or less

KRW

100,000

,000

Policy 2.27 2.31 2.67 3.09

2.6

Enhancement of

competitiveness of shipping

market

Bottoms of national shippers

Ton

100,000

,000

Maritime

policy0.44 0.67* 1.0 1.5

3 Discovery of future-oriented smart logistics technology and fostering information business

:

:

:

:

Less effective in implementing the logistics plan due to diversified governance

Insufficient to overcome infra-focused logistics policies

Lack of understanding among people about logistics industry

Limit to respond to rapidly changing logistics environment

Restricted cooperation and sharing logistics policies with neighboring countries

Insufficient upbringing of expert manpower

Required to unify logistics governance

Shipping, overland transport, air transport, professional logistics

and industrial logistics should be integrated

Required to develop infrastructure under the logistics plan

Hard to manage policies if the functions of infra-focused

logistics departments covering railroads, ports and air are strengthened

Customized plan to match up to the national economy

Infra → Freight Volume → Added Value → Network → City Development

Plan to meet the national environment and features

Policy-making that considers geological features and

specification of each mode

Required to foster not only logistics experts

but also logistics master

Manpower being capable of understanding and managing SCM

at the national level should be secured in addition to logistics

experts in each sector

Cooperation with global logistic experts at the early stage

When devising logistics plans, cooperation with global experts

via ODA or international organizations is required

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