Coupang Logistics Center
Overview
Coupang Logistics Centers are logistics hub facilities operated by Coupang, located nationwide, serving as advanced logistics hubs that automate and streamline the processes of product receiving, storage, picking, packing, and shipping. These centers are the physical foundation enabling Coupang's core competitive advantage, 'Rocket Delivery,' and play a pivotal role in the ultra-fast logistics system that delivers products to customers within 24 hours of ordering. As of 2025, Coupang operates over 100 fulfillment centers (FCs) and more than 250 sub-hubs nationwide, processing millions of orders daily with a directly employed workforce of over 50,000 people.
Main Content
Types and Roles of Logistics Centers
Coupang's logistics network is broadly divided into large fulfillment centers (FCs), sub-hubs, and last-mile delivery bases. Large fulfillment centers are located in the Seoul metropolitan area (Gimpo, Bucheon, Daejeon, Yangsan in Gyeongnam, etc.) and major cities, storing hundreds of thousands of product types in spaces spanning tens of thousands of pyeong. Here, the entire process from product receiving and storage to order receipt, picking, packing, and shipping takes place. Sub-hubs are regional intermediate logistics bases that sort products shipped from large FCs by region and send them to final delivery destinations. Last-mile delivery bases are small neighborhood-level warehouses where Coupang Friends (delivery drivers) pick up products and handle the final step of direct delivery to customers.
Automation Technology and Operating Systems
Coupang Logistics Centers have introduced world-class logistics automation technology. Notably, they operate a self-developed warehouse management system (WMS) called the Coupang Flexible System (CFS), which performs real-time inventory management, order processing optimization, and dispatch planning. Robot-based automation is particularly prominent; the Automated Storage and Retrieval System (AS/RS) introduced in 2023 automatically stores and retrieves products from high racks, while picking robots and AGVs (Automated Guided Vehicles) move products instead of humans. Additionally, an AI-based demand forecasting system analyzes past sales data, weather, events, etc., to optimize inventory by region and time, minimizing stockout rates and maximizing inventory turnover. As of 2024, this automation has increased throughput by over 30% in some centers and contributed to reducing error rates to below 0.1%.
Economic and Social Impact of Logistics Centers
Coupang Logistics Centers have a significant impact on local economies. Each center attracts investments worth hundreds of billions of won during the construction phase and creates thousands of direct jobs during the operational phase. For example, the Daejeon Logistics Center completed in 2024 has a total floor area of 100,000 pyeong and employs over 7,000 workers. Additionally, related industries such as courier services, transportation, restaurants, and accommodations develop around the logistics centers, contributing to local economic revitalization. However, negative impacts such as traffic congestion, noise, and air quality deterioration also exist. In response, Coupang is strengthening ESG management by introducing electric trucks, installing solar panels, and using eco-friendly packaging materials. As of 2025, carbon emissions from Coupang Logistics Centers have decreased by 15% compared to 2020, with a target of a 50% reduction by 2030.
Working Conditions and Labor Issues
The working conditions at Coupang Logistics Centers have been a subject of ongoing controversy. Issues regarding worker health and safety have been raised due to high work intensity, night and weekend shifts, and performance pressure. According to a 2023 survey by the Ministry of Employment and Labor, the industrial accident rate at Coupang Logistics Centers was 1.5%, higher than the national average of 0.7%. In response, Coupang has implemented improvement measures since 2024, including the introduction of smart safety equipment (wearable sensors, AI CCTV), expansion of rest areas, and operation of psychological counseling programs. Furthermore, from January 2025, the 52-hour workweek system has been fully applied across all logistics centers, and night shift allowances have been increased by 50%. Through collective bargaining with labor unions, work pace measurement standards have been rationalized, and an agreement has been reached to supplement additional manpower by over 20% during peak seasons (Black Friday, Chuseok, etc.).
Latest Trends
In 2024-2025, Coupang Logistics Centers are evolving along two axes: hyper-automation and eco-friendly transition. In September 2024, Coupang broke ground on a 5th-generation logistics center in Icheon, Gyeonggi Province, which introduces the concept of a 'Dark Store' where AI and robots handle all processes. Human workers are only responsible for monitoring and exception handling, with all logistics flows automated. Additionally, in March 2025, Coupang launched a drone delivery pilot service in Daegu and Jeju, installing drone landing pads on logistics center rooftops and announcing plans to reduce delivery times to remote and mountainous areas to within two hours. Meanwhile, Coupang is operating the Bucheon 2 Center, which received carbon-neutral logistics center certification in April 2025, and is applying zero-energy design to all new centers. Furthermore, the introduction of an AI-based dynamic dispatch system optimizes delivery routes in real time, reducing fuel consumption by 12%. These innovations are key drivers for Coupang, which surpassed 40 trillion won in annual revenue in 2024, maintaining its competitiveness in the global e-commerce market.
Related Topics
- [[Rocket Delivery]]
- [[E-commerce Logistics Innovation]]
- [[Coupang]]
- [[Logistics Automation]]
- [[ESG Management]]