Alibaba arm Cainiao to become logistics partner for Korean SME exports

Alibaba Group’s Cainiao Smart Logistics Network has agreed to become the official logistics partner of Korea SMEs and Startups Agency (KOSME) for small and medium-sized export businesses in South Korea.

Cainiao’s smart warehouse in China / Photo credit: Cainiao

The memorandum of understanding aims to promote bilateral trade and to expand the connection of Korea and China’s ecommerce industries, according to a statement.

Under the tie-up, Cainiao Network will be KOSME’s partner in its logistics subsidy program, which aims to provide up to 15 million won (US$13,500) per company to cover roughly 70% of their export expenses, including those for ecommerce logistics.

SMEs will also be able to leverage Cainiao’s logistics management system, which would allow them to get real-time insights and support across warehouse inventory, order fulfilment, delivery status, and billing, among others.

“This will offer SMEs a greater peace of mind to better focus on their sales and growth strategies,” said James Zhao, general manager for global supply chain at Cainiao.

The development comes after Cainiao officially launched in Korea last year, offering 15,000 square meters of warehouse space, last-mile delivery, and customs clearance services.