Korea Post’s Remarkable Performance

Declares a long-term vision calling for 26 trillion won in sales in 2020 as the most reliable company in the Asia-Pacific region

Korea Post, in charge of postal services and financial services by post offices nationwide, was inaugurated on July 1, 2000, as an affiliate of the now-defunct Ministry of Information Communication, departing from the direct control of the ministry. The shift was designed to give its management leeway and responsibility for business performances in order to cope with such environmental changes as the development of e-mail and other info-tech media and the opening of the Korean postal service market.
Despite such hardships as the Asian financial crisis, the current economic crisis and a plunge in postal matters caused by the evolution of the Internet, Korea Post has since come a long way as it saw its profit surge from 31.2 billion won in its inaugural year to 168.8 billion won in 2009, for an accumulative 1.57 trillion won in profits for the decade. The figure was remarkable compared to a $3.8 billion loss for its counterpart in the United States, a 230 million euro loss in the United Kingdom and a 47.4 billion yen loss in Japan.
In an effort to brace for a plunge in postal matters following technology development, Korea Post has strategically nurtured postal home delivery services and international Express Mail Services (EMS) since 2000. The postal home delivery service, which was nothing but postal parcel service in the past, has grown from strength to strength to become one equivalent to the home delivery service level of the private sector. Korea Post saw the postal home delivery service business reach 285 billion won in sales in 2009, a 25-fold jump from the 11.2 billion won in 2000. Korea Post also rose to the No.1 player in the Korean international EMS market by surpassing the 6 million EMS case mark last year to beat multinational EMS providers.
Korea Post has revamped its postal delivery network from railroad to road and installed a director general in charge of logistics as part of its efforts to ramp up its presence in the logistics business. In 2004, it built a postal logistics system so that a real-time search of the logistics delivery process can be available via the Internet at any time and any place. Two years later, a postal matter situation control system based on the Graphical Information System/Global Positioning System (GIS/GPS) was in place to ensure comprehensive, real-time management of postal matters. The system was exported to Kazakhstan for 5.5 billion won last year. Korea Post offers SMS services informing users of expected delivery time and completion of delivery, differentiating it from other logistics companies.
The opening of Internet post offices has revolutionized postal services. It has enabled electronic mail, customer-tailored letters and home delivery/EMS applications via the Internet. Thanks to this, Korea Post has been able to offer 35 kinds of services, including mail delivery and change of address applications, contributing to it becoming an IT company.
IT has given a helping hand to the postmen as well. A system for classing postal matters according to the order of delivery has been built, resulting in cutting each postman’s average workday by one and a half hours. So far, 69 units have been installed. Paper delivery sheets have disappeared as personal digital assistants (PDAs) have been in use since 2001. Starting last year, the radio frequency identification (RFID) system made its debut. RFID readers have been in place and tags have been attached to 48,000 devices so that the arrival and dispatching of postal matters can be improved and transportation apparatus can be efficiently managed.
Korea Post has made a splash in the financial services business. The company has seen its savings account amounts and insurance assets double by building a stable profit foundation through a raise in the yield of financial funds and the supply of customer-tailored products. Korea Post has been credited with overcoming the drawbacks of a state-run financial institution amidst fierce competition with its privately run rivals. Korea Post has handled such financial services as the opening of stock exchange accounts for residents in fishing, farming and remote areas, and serving as an agent of 148 privately run financial institutions under mutual agreements.
The Postal Social Volunteer Group and the Delivery 365 Volunteer Team are Korea Post’s representative clubs that are actively involved in social contribution activities. They have volunteered in sharing love with the underprivileged through a nationwide network. The number of beneficiaries has topped 140,000 and the support amounts have surpassed 20 billion won. Korea Post has offered financial products tailored to meet the needs of people and to provide financial assistance to low-income earners through Korea Post’s financial services.
Korea Post has been recognized for its achievements in Korea and abroad. It has topped the Korea Customer Service Index in general administration services for the 11th straight year, the National Customer Service Index in public administration services for the ninth straight year and the National Customer Service Index in postal home delivery services for the fourth time in a row. Among the coveted awards Korea Post has received abroad is the Gold Level Award in the EMS service quality survey from the Universal Postal Union (UPU) for the fifth time.
In a ceremony to celebrate the 10th anniversary of its inauguration at the Seoul Post Tower on July 1, Korea Post unveiled the “Korea Post Vision 2020” calling for 26 trillion won in sales in 2020 and it being the ‘No. 1 publicly reliable company’ in the Asia-Pacific region, as well as introducing its new corporate identity. To this end, Korea Post announced as action plans the “four S Strategies” ― “Smart Post,” “Smile Finance,” “Social Infra,” and “Strong System” ― in order to transform itself into a global publicly reliable company integrating the whole of Korea by connecting individuals and individuals, individuals and firms, and companies and companies based on its nationwide network. nw

Korea Post President Namgung Min delivers a speech at a ceremony to mark the 10th anniversary of its establishment.