BGF Retail Opens 260 Billion Won Logistics Hub in Busan
The CU convenience-store operator has opened its largest logistics facility near Busan New Port, combining automated distribution systems with capacity intended to support regional deliveries and overseas expansion.
BGF Retail has opened a 260 billion won ($187 million) logistics center in Busan, calling it the largest facility built for South Korea’s convenience-store industry. The investment is intended to reorganize distribution across the southeastern region while strengthening the infrastructure behind the company’s CU chain and its expansion abroad.
The company held a completion ceremony Wednesday at the center in Gurang-dong, Gangseo District. BGF Group Chairman Hong Seok-jo, BGF Retail Vice Chairman Hong Jung-kook and Busan Mayor Jeon Jae-soo were among those attending.
The complex stands on a 47,186.8-square-meter site and has 128,072.65 square meters of total floor space. BGF Retail said it represents the company’s largest logistics investment to date. Planning began after the retailer signed an investment agreement with the Busan city government in 2021. Construction started in 2024 and was completed on July 14 after roughly two years of work.
The center will serve as a major distribution base for CU stores and is designed to streamline deliveries throughout Busan and the wider Yeongnam region. Its location near Busan New Port also gives the company access to import and export channels as it develops its overseas convenience-store business. CU currently has operations in markets including Mongolia, Malaysia, Kazakhstan and Hawaii.
Automation is a central feature of the facility. The center uses automated storage and retrieval systems, auto-labeling equipment and digital picking technology to move and sort products. BGF Retail expects the systems to help the operation respond to shifts in shipment volumes by season and by day, while reducing repetitive and physically demanding tasks for workers.
The facility has received preliminary first-grade certification under the Ministry of Land, Infrastructure and Transport’s smart logistics center program. It also includes a rooftop solar power installation capable of generating as much as 2,700 megawatt-hours of electricity annually.
For BGF Retail, the project links domestic distribution efficiency with a broader international growth strategy. A larger and more automated regional hub can improve supply stability for stores in southeastern Korea, while proximity to a major port can support the movement of products and equipment connected to overseas operations.
The opening also highlights intensifying investment in logistics technology among Korean retailers. Convenience stores depend on frequent deliveries across large networks of small outlets, making inventory handling and route efficiency critical to keeping shelves stocked. BGF Retail said the Busan center will reinforce CU’s logistics capabilities and provide a foundation for continued expansion in Korea and overseas.