This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:34 p.m. on Jul. 21, 2026.
As a large fire broke out at Coupang's Incheon logistics center invested in by the National Pension Service and others, once the flames are fully contained and the situation is under control, IGIS Asset Management and Coupang are expected to determine who is liable for the losses. As of 3 p.m. on the 21st, the fire at the Incheon Coupang logistics center was in the overhaul stage.
The building is covered by property damage insurance with a 380 billion won limit. Because rent losses incurred during the restoration period can also be covered by insurance, some observers say the likelihood that institutional investors will immediately shoulder massive losses is limited. However, if the fire is found to have originated during Coupang's facility operation or management, Coupang will likely be liable for damages.
◇ Coupang holds a master lease on the entire logistics center... it directly appointed and manages fire safety firms
According to the investment banking (IB) industry on the 21st, IGIS Asset Management has taken out property damage insurance with a compensation limit of about 380 billion won for the building and facilities of Coupang 32 Logistics Center in Seoknam-dong, Incheon. The coverage reportedly includes not only direct property losses when the building is damaged by fire, but also rent losses incurred during the restoration period.
However, 380 billion won is the maximum coverage limit, not a confirmed payout. The exact amount is expected to be determined after fire suppression through a building safety inspection and loss assessment. The actual payout may vary depending on the building's residual value, restoration costs, deductibles under the policy, and exclusions.
The logistics center is owned by a private real estate fund managed by IGIS Asset Management. In 2024, IGIS acquired it from KKR for a price in the mid-500 billion won range. The fund's main beneficiaries include three institutions, such as the National Pension Service and the Teachers' Pension.
The logistics center has eight above-ground floors, with a total floor area of about 299,000 square meters, and Coupang has operated it as a logistics center under a long-term master lease. The fire first broke out on the 6th floor on the 18th and spread to the 7th floor, and initial suppression was completed on the evening of the 20th. However, embers remain, so full extinguishment is expected to take more time.
The issue ahead is who is responsible for the ignition cause and for building and facility management. If the fire occurred due to a structural defect in the building itself or a defect in equipment for which the landlord is responsible, IGIS could bear liability.
IGIS says that even in that case a significant portion of the damages would be covered by insurance, but some in the retail industry believe the damages could exceed the insurance payout. Coupang suffered 340 billion won in losses in the Icheon Deokpyeong logistics center fire five years ago. The Incheon logistics center is about 2.3 times larger than Deokpyeong.
The variable is whether Coupang bears responsibility related to the fire. Coupang fully occupies the logistics center under a master lease and has directly appointed and managed fire and disaster prevention firms. Therefore, if it is confirmed that the fire was caused by negligence by Coupang or a fire-safety contractor, Coupang could be liable for compensation. In that case, the insurer could first pay IGIS and then exercise subrogation to recover the payout from Coupang or the facility management firm.
Fire authorities and police plan to conduct a joint inspection focusing on the 6th floor, the initial ignition point, as soon as the fire is fully extinguished, and to secure CCTV footage and fire alarm records. The insurer's accident investigation and loss adjustment procedures are expected to follow.
Some say there is likely no issue with the building itself because sprinklers and fire shutters were operating when firefighters arrived at the scene. However, whether the systems activated at the right time and performed to specification can only be confirmed after a detailed inspection.
◇ Ties with the National Pension Service already shaken... the fire adds to IGIS's burden
Meanwhile, from IGIS's standpoint, the logistics center fire could become another liability factor in its relationship with the National Pension Service. Although the fire has not fixed investment losses for the National Pension Service, IGIS is now in a position where it must continuously brief its key investor on the fire's cause and scale of damage, the likelihood of an insurance payout, and plans to restore the asset.
The relationship between the two sides was already shaken once during last year's IGIS control sale process. At the time, controversy flared that IGIS had provided information related to National Pension Service-committed funds to potential buyers without prior consent, and the National Pension Service even reviewed replacing the manager of assets entrusted to IGIS or clawing back investments. Although it did not lead to a wholesale withdrawal, the industry assessed that significant cracks had formed in mutual trust.
This year, conflict resurfaced over operating rights for Yeoksam Centerfield. As IGIS moved to sell Centerfield ahead of the fund's maturity, the National Pension Service and Shinsegae Property opposed it, and the National Pension Service ultimately selected a new external manager to replace IGIS and began procedures to transfer the asset.
In this context, the outbreak of a fire at another large asset financed by the National Pension Service has put IGIS in an even more awkward position. It must handle talks with Coupang over liability and the possibility of profitability deteriorating due to restoration delays. In particular, if the fire's cause is traced to issues in building or facility management, some say it cannot be ruled out that the National Pension Service will question IGIS's asset management capabilities.
An IGIS official said, "As soon as fire suppression is complete, we will swiftly restore the asset so there is no disruption to the tenant's normal use and to protecting fund beneficiaries."