LX Group eyes e-commerce as first business item
A subsidiary of LX Group has developed a logistics management system optimized for e-commerce, signaling the group’s interest in online commerce as its first business item, following its spinoff from the country’s fourth-largest conglomerate, LG, in May.
LX Group said Wednesday that the system developed by its logistics unit, Pantos Logistics, has been operational since mid-June.
The system brings together data on the inventory, shipping and sales of goods produced by Pantos Logistics’ corporate partners so that they can cut time and effort in managing their goods through separate systems, according to the group.
The integrated system is similar to the ones being used by e-commerce companies. They have advanced into warehousing, delivery and other linked industries, along with accordingly developing a fulfillment service system to oversee the entire processes.
“You may say that LX has advanced into the e-commerce industry, although its logistics system does not deal with retail customers,” an industry source familiar with the matter said.
Pantos Logistics is being operated under LG International, one of four affiliates controlled by LX, with group Chairman Koo Bon-joon, who is an uncle of current LG Chairman Koo Kwang-mo, taking power.
The other three affiliates are LG Hausys, Silicon Works and LG MMA. Necessary procedural measures are underway for the four affiliates to be rebranded accordingly as LX.
During the general shareholders meeting in March, LG International added e-commerce — particularly fulfillment services — as a new business area.
Korea is the world’s fifth-largest e-commerce market in terms of its annual volume of transactions, with China and the United States being the two largest players.
The estimated monetary size of the local fulfillment market is approximately 2.6 trillion won ($2.3 billion) this year, according to recent data from the Korea SMEs and Startups Agency.