South Korea will invest US$3 billion to expand its overseas terminals and logistics network under a government plan aimed at strengthening supply chains and boosting trade competitiveness, reports New York's Journal of Commerce.

The Ocean and Fisheries Ministry said the three-point plan will raise the number of publicly supported logistics facilities abroad from nine to 40, secure investment in 10 overseas port terminals, and help develop three major logistics companies by 2030.

Priority will be given to warehouses and container yards in 11 target markets including the US, Canada, Mexico, Vietnam, Indonesia, Thailand, Germany and Poland. Vice Minister of Oceans and Fisheries Kim Seong-beom said securing overseas bases was vital to stabilising supply chains.

Most of the investment will be managed by the Korea Ocean Business Corporation. The plan includes creating a foreign terminal investment group with shipping companies, logistics operators and port authorities such as Busan to identify expansion opportunities.

A container terminal investment fund worth $670 million will be set up to acquire stakes in foreign terminals and secure operating rights. KOBC's Global Logistics Supply Chain Investment Fund will also double to $1.3 billion to support small and medium-sized logistics firms abroad.

The ministry said the initiative comes amid rising concern that South Korea is losing ground in global trade due to limited overseas investment. It cited tariff hikes, the Russia-Ukraine war, the Red Sea conflict and climate pressures as factors increasing supply chain instability.

Only nine per cent of overseas logistics centres run by South Korea's top 15 companies are owned, with the rest leased. The ministry warned this left firms exposed to rising costs and disruption during crises.

Just seven South Korean companies hold stakes in overseas container terminals. HMM has interests in six including Long Beach, Tacoma, Singapore and Algeciras. CJ Logistics operates facilities in Shenyang, Klang and Thailand, while Lotte Global Logistics has warehouses in Vietnam, the Philippines and Europe.