Samsung SDS Acquires Woojung Air Consolidation to Boost Profits

The Samsung SDS booth at the 2026 Public AI Expo held at KINTEX in Ilsan, Gyeonggi Province, on June 23. (Samsung SDS) Samsung SDS is moving to improve profitability in its air cargo business by acquiring a 100% stake in Woojung Air Consolidation, an air cargo specialist. According to IT industry sources on Oct. 12, Samsung SDS signed a share purchase agreement for the acquisition. After reviewing the deal since the first half of this year, the company plans to complete all acquisition procedures by year-end and integrate Woojung Air Consolidation as a wholly owned subsidiary specializing in air freight consolidation. The acquisition is seen as a strategic move to address persistently low margins in Samsung SDS’s logistics business. Last year, the division generated 7.39 trillion won, or approximately $5.54 billion, in revenue, accounting for 53% of the company’s total revenue, but posted an operating margin of just 1.8%. The margin remained at 1.2% in the first half of this year, indicating that profits have remained modest relative to the division’s revenue. Founded in 1999, Woojung Air Consolidation specializes in cargo consolidation, a process that combines smaller shipments into a single, larger load. It secures cargo space through agreements with South Korean and major international airlines. Last year, the company recorded 213.9 billion won in revenue and 3 billion won in operating profit. One of Woojung Air Consolidation’s key advantages is its logistics center near Incheon International Airport, which includes a commercial shipper terminal capable of handling security screening and cargo loading in an integrated process. Samsung SDS expects to significantly reduce the time and costs involved in air cargo transportation by using Woojung Air Consolidation’s infrastructure to provide its own security screening services. With Incheon International Airport as their hub, the two companies plan to jointly handle cargo originating in South Korea as well as shipments from elsewhere in Asia that transit through Incheon, strengthening their cargo consolidation capabilities. The acquisition also aims to advance digital logistics services. Samsung SDS plans to connect its digital logistics platform, Cello Square, with Woojung Air Consolidation’s digital air logistics platform, iNomad. The companies have worked together since 2022, combining air cargo location and freight rate information and jointly developing international air logistics products. Once the systems are integrated, data-driven automation is expected to accelerate and air freight processing capabilities to improve. Samsung SDS aims to strengthen its air freight forwarding business, support South Korean e-commerce sellers seeking to expand overseas and enhance its logistics outsourcing services across the value chain. Industry observers say the acquisition gives Samsung SDS both the operational capabilities and digital platform needed to expand its air freight forwarding services. Whether the company can translate its strategy to expand air cargo operations through Incheon International Airport into tangible results in global markets will be key to improving profitability.