LX Group, an LG Corp. spinoff company, announced that it would be joining the global e-commerce industry. In particular, LX Group would launch a worldwide fulfillment service platform with Pantos Co., the country’s largest logistics company.
According to an LG official, Pantos, LX Group’s logistics unit, recently established an integrated e-commerce platform. After finalizing the logistics management system, Pantos began offering services this June.
The LG official also shared that LX Group already built around 360 branch centers and 250 logistics hubs across the world. Moreover, the newly established company aims to earn a leading position in the global e-commerce sector, becoming a company specializing in all-inclusive fulfillment services.
Re-Launching as LX Group
The fulfillment service platform marks LX Group’s first undertaking since it spun off its parent company LG. Earlier this May, LX Group sun off from LG, South Korea’s fourth-largest conglomerate.
Upon its establishment, LX Group became South Korea’s 50th largest conglomerate. As part of its business restructuring, LX Group transferred five LG subsidiaries, taking them under LX Holdings Corp., its investment holding unit.
LX Holdings currently holds the commodity trader LG International and the material manufacturer LG Hausys. The holding company also took the chemical manufacturer and distributor LG MMA and semiconductor developer Silicon Works under its management.
LX Holdings also handles Pantos, the world’s 26th largest logistics company. These subsidiaries would remove LG from their names and add ‘LX’ as part of their brand re-launch. Furthermore, LX Group’s Pantos operates a business-to-business delivery platform, continuously strengthening its global network.
Fast-Growing Fulfillment Service Market
Accordingly, LX Group announced its plans to participate in the e-commerce market with a fulfillment service, expanding its business portfolio. Fulfillment centers offer end-to-end services to e-commerce sellers, covering product managing, packing, and shipping.
Industry analysts also expect fulfillment service providers to grow exponentially in the coming years due to the worldwide e-commerce boom. Additionally, South Korea currently ranks as the world’s fifth-largest e-commerce market.
As a result, Korea SMEs and Startups Agency expects the domestic fulfillment sector to reach 2.6 trillion won ($2.3 billion) by the end of this year. Separately, Coupang reached a milestone in June by launching its first overseas e-commerce operation in Japan.
Naver also recently entered the local fulfillment industry after partnering with CJ Logistics to launch a comprehensive next-day delivery service. The two companies established fulfillment hubs equipped with CLOVA Forecast, Naver’s cutting-edge, AI-based logistics prediction technology.
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