South Korea Last Mile Delivery Market Overview, 2030

The South Korean last mile delivery market is experiencing rapid expansion, driven by the growing e-commerce sector, the high adoption rate of technology, and increasing consumer expectations for faster, more convenient delivery options. South Korea's advanced technological infrastructure, high-speed internet penetration, and widespread smartphone usage have created a fertile ground for innovation in last mile delivery. Major e-commerce players such as Coupang, Gmarket, and 11Street have disrupted traditional retail models, making fast delivery a critical part of their competitive edge. Coupang, in particular, has revolutionized the industry with its ""Rocket Delivery"" service, offering same-day or next-day delivery for millions of items. This shift towards quicker delivery times is largely attributed to consumer demand for convenience, as people expect their products to be delivered within hours of placing an order. The South Korean government’s investments in infrastructure and transportation systems have also played a significant role in enabling efficient last mile delivery services across the country. With its compact geographical layout and high population density in urban areas, South Korea is an ideal location for implementing advanced delivery solutions, such as drones, autonomous vehicles, and electric bikes. These solutions are being integrated by logistics companies to address both the urban congestion challenges in cities like Seoul and the need for environmentally friendly delivery methods. Moreover, the rapid adoption of digital payment methods, combined with South Korea’s sophisticated logistics network, has made it easier for consumers to place orders and receive goods with minimal hassle. The increasing popularity of ""click and collect"" services, where consumers can choose to pick up their online purchases at designated locations, has also helped mitigate some of the last mile delivery challenges.

According to the research report, ""South Korea Last Mile Delivery Market Overview, 2030,"" published by Bonafide Research, the South Korea Last Mile Delivery market is anticipated to grow at more than 9.96% CAGR from 2025 to 2030. In addition to the growing demand for fast deliveries in urban centers, the South Korean last mile delivery market is also witnessing innovations to meet the needs of rural and suburban areas. Despite the country’s relatively small size, challenges still exist in providing cost-effective delivery services to regions outside of major cities. Logistics companies are focusing on adapting delivery models to overcome these challenges by using smaller vehicles or shared delivery fleets to improve operational efficiency. Many companies are exploring the use of autonomous delivery vehicles, including self-driving cars and drones, to deliver goods to remote areas or areas that may be difficult to access with traditional vehicles. Furthermore, the popularity of smart homes and smart appliances is fueling the demand for specialized delivery services. As a result, companies are offering tailored solutions such as temperature-controlled delivery for food and pharmaceuticals, adding a new layer of complexity to last mile delivery. With South Korea being a leader in the development of autonomous delivery technologies, including drones, there is significant potential for future advancements in the sector. Drones are expected to play a key role in reducing delivery times and overcoming the challenges of congested urban streets or hard-to-reach rural locations. Additionally, last mile delivery companies are increasingly leveraging Artificial Intelligence (AI) to better predict demand and optimize delivery routes.

The last mile delivery market in South Korea is expanding rapidly, driven by the country’s advanced digital infrastructure, high internet penetration, and increasing consumer demand for seamless e-commerce experiences. In the business-to-consumer segment, leading e-commerce platforms such as Coupang, Gmarket, and Naver Shopping have revolutionized the retail landscape by providing fast and reliable deliveries to customers nationwide. Urban centers like Seoul, Busan, and Incheon are witnessing a surge in online shopping, necessitating efficient logistics operations to fulfill rising orders. The country’s dense population in metropolitan areas allows for optimized delivery networks, where businesses leverage local fulfillment centers and micro-warehouses to reduce transit times. The rise of subscription-based delivery models, particularly in grocery and meal-kit services, has further accelerated the need for efficient last mile logistics. With South Korea being a global hub for electronics and automotive manufacturing, businesses require swift and precise last mile solutions to maintain their operational efficiency. Meanwhile, the customer-to-customer delivery model is also gaining traction through peer-to-peer platforms like Karrot and Joonggonara, where individuals trade secondhand goods and require secure and efficient courier services. The increasing adoption of mobile payment systems and integrated logistics tracking has enhanced the convenience and reliability of last mile delivery services, allowing businesses and consumers to experience seamless transactions.

South Korea’s last mile delivery industry is witnessing rapid advancements in technology, with companies integrating both autonomous and non-autonomous solutions to improve efficiency. The traditional method of human-driven deliveries continues to be the dominant force, with motorcycles, bicycles, and small trucks being commonly used for urban logistics. Couriers from platforms like Baemin and Yogiyo rely on these vehicles to navigate dense city streets and deliver food, groceries, and small parcels with speed and accuracy. However, the country’s focus on technological innovation has led to a rise in autonomous delivery solutions. Companies are experimenting with self-driving robots and drones to address labor shortages and enhance last mile efficiency. E-commerce giant Coupang has invested in drone delivery trials, aiming to streamline its logistics operations by reducing reliance on human couriers. Autonomous delivery robots are being deployed in university campuses, office complexes, and smart city districts to deliver packages and food orders without human intervention. South Korea’s smart city initiatives, particularly in regions like Songdo and Pangyo, are integrating AI-powered logistics systems to create a more connected and efficient urban delivery ecosystem. Despite these advancements, widespread adoption of autonomous delivery solutions remains limited due to regulatory constraints and the complexity of navigating crowded urban environments. To overcome these challenges, logistics companies are focusing on hybrid delivery models that combine human-operated transport with AI-driven route optimization. The evolution of last mile delivery in South Korea is marked by a balance between traditional and innovative logistics approaches, ensuring that both urban and rural consumers benefit from efficient and timely delivery services.

The demand for last mile delivery services in South Korea is fueled by applications across e-commerce, FMCG, and specialized industries. The country’s highly digitalized consumer market relies on e-commerce platforms for daily essentials, electronics, and fashion, making efficient last mile logistics a crucial component of online retail success. Online grocery shopping has gained significant momentum, with companies like Market Kurly and Coupang Fresh offering fast delivery of perishable goods. FMCG brands benefit from robust logistics networks that ensure products like household essentials, personal care items, and beverages reach customers quickly. The growing adoption of meal-kit services has further driven demand for fast and temperature-sensitive deliveries. South Korea’s pharmaceutical industry is also witnessing an increased reliance on last mile delivery, particularly for prescription medications and health supplements. Online pharmacies provide doorstep delivery of essential medicines, supported by temperature-controlled logistics solutions to maintain product integrity. Additionally, the country’s luxury goods and electronics sectors have high expectations for secure and premium delivery services, prompting logistics providers to offer specialized handling and packaging solutions. The application of last mile logistics in multiple industries highlights the need for highly adaptable and technology-driven solutions to keep pace with consumer expectations.

South Korea’s fast-paced urban lifestyle and demand for convenience have led to the rise of diverse delivery speed options, catering to various consumer preferences. Standard delivery services, which typically take a few days, continue to dominate for non-urgent shipments, such as apparel, books, and electronics. However, the demand for expedited delivery options is growing significantly, particularly for groceries, fresh food, and high-value products. Same-day delivery services are becoming increasingly common, with companies leveraging artificial intelligence and data analytics to optimize order fulfillment and delivery routes. Platforms like Coupang’s Rocket Delivery and Market Kurly’s dawn delivery service have set new benchmarks in the industry, offering near-instantaneous delivery solutions. Businesses are investing in last mile innovations, including strategically positioned dark stores and urban fulfillment centers, to reduce delivery times and meet consumer expectations. Additionally, temperature-controlled logistics have become essential for same-day delivery of perishable items, ensuring that fresh produce and dairy products reach consumers in optimal condition. As South Korea continues to lead in technological adoption and smart city development, last mile delivery services are expected to evolve further, integrating automation, AI, and robotics to enhance speed and efficiency.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Last Mile Delivery Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Service Type
• B2C (Business-to-Consumer)
• B2B (Business-to-Business)
• C2C (Customer-to-Customer)

By Technology
• Non-autonomous
• Autonomous

By Application
• E-commerce
• FMCG (Fast-Moving Consumer Goods)
• Others (electronics, luxury goods, and pharmaceuticals)

By Delivery Time
• Regular Delivery
• Same-Day Delivery

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.