Korean logistics completions plunge 74% in 2025 as new supply slows

Total logistics stock reached 42.8 million square metres.

Nationwide completions of large-scale logistics centres in Korea fell sharply in 2025, reflecting a dramatic slowdown in new supply after several years of rapid expansion, according to a report by global real estate advisory firm Savills.

In its latest market update, Savills said completions of logistics centres larger than 16,500 sq m in gross floor area dropped 74% year-on-year in 2025. Despite the steep decline in new projects, the country’s total logistics stock still grew to 42.82 million sq m, representing a 3.8% increase compared with a year earlier.

The report noted that new cold storage supply remained particularly limited during the year. According to Savills, only about 80,000 sq m of cold storage space was completed nationwide in 2025, with all of the new facilities located within the Seoul Metropolitan Area.

The Seoul Metropolitan Area (SMA) continues to dominate the country’s logistics landscape. Savills estimates the region accounts for approximately 74.7% of total nationwide logistics stock.

However, the pace of development in the region slowed significantly in 2025. Savills said the SMA had recorded average annual additions of about 3.62 million sq m between 2020 and 2024, reflecting strong developer activity during the pandemic-era logistics boom.

That trend reversed last year. Completions in the SMA dropped to just 1.08 million sq m in 2025, well below the levels seen in previous years.

Even with the slowdown in new deliveries, overall stock in the region still expanded modestly. Savills reported that logistics inventory in the Seoul Metropolitan Area reached 31.98 million sq m at the end of 2025, representing a 3.5% year-on-year increase.

Savills said the sharp fall in completions highlights a cooling development pipeline after several years of aggressive construction across the logistics sector.