Dongwon Group to establishe new corporation for auto parts logistics

South Korea's Dongwon Group announced on Monday that it will launch a new corporation called "Next Lo Co." on May 1 to strengthen the competitiveness of its automotive parts logistics business.

Next Lo is a specialized parts logistics company that handles the logistics operations of automotive parts companies. It's an affiliate of Dongwon Loex, responsible for the logistics business of Dongwon Group.

The goal of Next Lo is to become a leading domestic automotive parts logistics company through infrastructure expansion and the establishment of an eco-friendly logistics system.

The name "Next Lo" is a combination of "Next" and "Logistics" and embodies the vision of becoming a specialized parts logistics company that provides sustainable next-generation logistics services.

Lee Dong-ho, the head of Dongwon Loex Parts Logistics, was appointed as the CEO of Next Lo. He stated that he will strategically respond to the rapidly changing logistics industry environment by further enhancing the expertise of the existing automotive parts logistics business and continuously improving operational efficiency.

Prior to its official launch, Next Lo signed a cooperative agreement with Hyundai Mobis for mutual growth in the automotive parts logistics area at the Hyundai Mobis headquarters in Seoul's Gangnam on April 21. Through this agreement, Next Lo aims to solidify its solid cooperation with Hyundai Mobis while expanding its business areas to various industries by securing domestic and international automotive parts companies as its customers.

In 2019, Dongwon Group established Dongwon Loex by merging Dongbu Express, which it acquired in 2017, and the logistics business unit Loex of Dongwon Industries. Dongwon Loex has grown into a leading integrated logistics company in Korea, providing logistics services in various areas such as freight transportation, port cargo handling, storage, international logistics and distribution. It has become a main business of the group with its sales exceeding 1 trillion won ($750 million) last year.

Write to Il-Gue Kim at black0419@hankyung.com