IKEA has withdrawn its plans to build the largest logistics center in Asia after signing an investment agreement worth 700 billion won with Gyeonggi Province.
According to related industries on the 16th, IKEA has decided to abandon the plan for the composite logistics center it was planning to build in the Pyeongtaek Poseung district in Gyeonggi Province and will sell the site valued at 55.5 billion won.
In 2020, during the tenure of Governor Lee Jae-myung, IKEA signed an investment agreement with Gyeonggi Province to build the largest composite logistics center in Asia on a site the size of 14 soccer fields.
At that time, Gyeonggi Province announced it had attracted investments worth 750 billion won from a total of five foreign corporations, creating around 7,000 jobs. IKEA planned to use this facility as a strategic base to strengthen online delivery logistics and sales.
IKEA Korea stated, “We planned a multifunctional composite logistics center to provide an omnichannel shopping experience that encompasses both online and offline shopping, but the abrupt change in consumer patterns and distribution environments has made a conservative reevaluation of the investment unavoidable.” It also mentioned that a buyer for the site has yet to be determined.