Yongin Techno Valley General Industrial Complex
Silicon2 (CEO Kim Sung-woon) has signed a contract to purchase a large logistics center in Yongin, Gyeonggi Province, to meet surging global demand for K-beauty and strengthen its logistics infrastructure.

In a regulatory filing on the 9th, Silicon2 announced that it had signed a purchase agreement for a logistics center located in Deokseong-ri, Idong-eup, Cheoin-gu, Yongin, Gyeonggi Province, inside the Yongin Techno Valley General Industrial Complex.

The acquisition price is about $37 million based on the supply price. The center has a total floor area of 43,971.6 ㎡ (about 13,300 pyeong / approx. 473,300 sq ft) and will serve as a new logistics hub to handle growing global K-beauty shipment volumes.

As its sales and number of handled stock-keeping units (SKUs) have risen rapidly in recent years, the burden on the company’s existing Opo logistics center has grown, prompting Silicon2 to seek an additional logistics base.

Volume handled at the Opo center has increased about 2.05 times over the past two years. With the new center, the company plans to improve its capacity to handle peak-season volumes and boost inventory operating efficiency.

The new center is located with excellent access to major consumer areas in the Seoul metropolitan region and can be linked to key logistics infrastructure such as Pyeongtaek Port, Incheon Port and Incheon International Airport. It is expected to be highly useful as a domestic logistics hub.

Using this acquisition as an opportunity, Silicon2 plans to expand its logistics automation equipment, including automated guided vehicles (AGVs) and a warehouse management system (WMS), to raise processing efficiency and put inventory operations on a more systematic footing.

The company aims to expand its domestic logistics capacity while strengthening its foundation to accommodate the onboarding of new brands and the growth of global distribution.

“The purchase of the Yongin logistics center is a strategic investment to reliably handle the fast-growing volume of global K-beauty shipments,” a Silicon2 official said. “We will continue to strengthen our global distribution competitiveness through logistics automation and more efficient inventory operations.”

Founded in 2002, Silicon2 operates Stylekorean.com, Korea’s largest cross-border cosmetics e-commerce platform, and supplies more than 600 K-beauty brands to 175 countries. Its earnings have grown significantly in recent years, driven by growth in the North American and European markets. In the second quarter, consolidated sales rose 52% year on year to $292 million, and operating profit increased 59% to $60 million.