Of the government's budget for next year, 7.9 trillion won has been allocated to the 'Digital New Deal' plan.
The project underlying the plan is establishing a 'Data Dam,' which refers to a 'cloud service integration
platform' where we can store a large quantity of data and supply it to those in need. This will serve to select
and store the data accumulated by public institutions and process it into usable forms. Data processing is a
critical factor in AI development; therefore, establishing the 'Data Dam' can be a preliminary work to prepare
for future industries. The name 'Data Dam' is also interesting in that it aims to create jobs and stimulate the
economy, as the US government constructed the Hoover Dam for similar purposes during the Great
▲ Overview of Data Dam Project (Ministry of Science and ICT)
Logistics is one of the five areas supported by the Data Dam project. There are fourteen selected
operators for the logistics sector (a consortium is considered one operator). We see that many of
them are companies whose main business is IT development or fourth-party logistics. That is where
one of the selected, E&C GLS, is distinctive from other players. Their first identity lies in the
operation of their own warehouse and fulfillment services they provide for customers while dealing
with various logistics solutions.
Logistics fulfillment service is E&C GLS’s core business and is in line with the growth of the
e-commerce market. This operator provides field-oriented consulting services as well, based on its
actual logistics operation experience. This is a rare case in Korea in which executives and employees
with hands-on experience in various forms of distribution such as home shopping, department
stores, and e-commerce have combined their accumulated know-how with IT for fashion and
cosmetics, auto parts, and special cargo, etc.
▲ E&C GLS Logistics Center, Icheon (E&C GLS)
The company has years of practice to effectively respond to e-commerce, select logistics locations,
and enhance the efficiency of structures and facilities. For instance, a Manhattan Beach, CA-based
fashion company selected Korea as its logistics hub in the Asian market and successfully settled
down using E&C GLS's services. In particular, Mr. Yang Hong-hyun, executive director, explains that
the company can be a good choice for foreign enterprises that want to establish a logistics system
in the early stage of the Korean or Asian market. "If technologies such as blockchain and data cloud
are applied to facilities, customers will be able to check the flow of products more easily and
efficiently, and this will create great synergy combined with our existing logistics management
skills," he added.
Existing Warehouse Management System software allows us to see values and figures of goods
entered and released from a facility, but E&C GLS is going further to develop solutions that can
optimize the flow of workers, equipment, and cargo traffic within the place. The development is
expected to be completed in December this year and will be applied first to its logistics center
starting next year. Besides, when the blockchain system, supported by the government, becomes
practical, it will be able to further increase efficiency by reducing the time required to resolve data
inconsistency or share it among the logistics process participants. Mr. Yang explained that the
company's blockchain development was already underway before the government announced the
plan, and it was lucky to be one of the selected companies. "We are one of the first to try this kind
of IT development among the logistics providers in Korea," he said.
"Our strength is that we have the practical ability to draw out specific action plans from a big
picture, and that's what sets us apart from other firms," says Yang. "Beyond a logistics center
operator or solution business, we aim to play a role as a data provider," he said, expressing strong
confidence to lead the market in the coming years.