Credit: Woojung Air
Samsung SDS is expanding its airfreight business with a takeover of South Korean consolidator Woojung Air, according to local media, adding airline capacity procurement expertise and a wholesale customer base that includes more than 1,200 freight forwarders.
The deal would strengthen the Samsung group’s position as a logistics supplier to other cargo owners. Samsung SDS already sells forwarding services through its digital forwarding Cello Square platform, while Woojung’s reported customers include Chinese ecommerce logistics company Cainiao.
Samsung SDS signed an agreement today to acquire 100% of Woojung, with completion expected by year-end. The purchase price has not been disclosed.
In a message to employees, quoted by Korean specialist publication Cargo Press, Woojung CEO Joon Suk Yim said discussions had begun in the first half of this year.
“Woojung has gained new wings, called Samsung SDS, built on the proud history it has forged,” he wrote, and outlined plans to strengthen consolidation by combining the companies’ Korea-origin cargo with shipments from elsewhere in Asia, transiting through Incheon.
Woojung’s terminal infrastructure and iNOMAD system would be linked with Cello Square and Samsung’s logistics network “to improve automation and airfreight competitiveness”, according to the report.
Founded in 1999, Woojung consolidates shipments and procures cargo space from airlines, rather than operating aircraft itself. Its business combines wholesale airfreight services with airport handling and digital booking capabilities. It reportedly handles more than 60,000 tonnes annually and has reported revenue of ₩213.9bn ($160.5m) and operating profit of ₩3bn last year, giving it an operating margin of approximately 1.4%. Its website lists 135 employees.
Its infrastructure includes a 20,104 sq metre logistics centre in Incheon Airport’s free trade zone, where it screens cargo, builds airline pallets and containers, and transfers cleared shipments securely to airline terminals, reducing the need for further screening.
Samsung SDS and Woojung have worked together since 2022, when they agreed to combine Woojung’s cargo-tracking and rate information with Cello Square and develop international logistics services for Korean ecommerce sellers.
The acquisition fits a strategy Samsung SDS had already outlined to investors.
In January, management said it planned to strengthen “air freight and contract logistics businesses, which offer more stable profitability compared to ocean logistics”. It also outlined plans to secure airline capacity in advance and work with European and Japanese cargo owners to combine shipments into larger, more efficient loads.
Its latest quarterly results subsequently identified air forwarding as a driver of logistics growth. Second-quarter logistics revenue increased 6.6% year on year, to ₩1.9553trn, supported by air forwarding, contract logistics and external business through Cello Square.
Other retail and industrial groups have also expanded established logistics businesses this year. JD Logistics increased its ownership of Deppon to approximately 99.7%, following its original acquisition of control in 2022. And the supply chain solutions arm of India’s TVS motor company agreed to acquire Swamy & Sons, securing an initial 80% stake in May.
For independent forwarders, the question is how Woojung’s wholesale business will operate under Samsung SDS ownership. The acquisition would give an existing ccustomer closer access to airline capacity and a sizeable forwarder customer base. Whether those customers continue to regard Woojung as a neutral supplier could help determine how much of that business Samsung SDS retains.
Woojung’s website notes it works with a multitude of carriers, including Air Canada Cargo, Atlas Air, Airzeta, Eva Air Cargo, Korean Air, and ANA.