Updated: July 2025, 12

What is the Comprehensive Logistics Efficiency Act (Logistics Efficiency Act)?

The Logistics Integration and Efficiency Act (Logistics Integration Act), officially known as the "Act on Promoting Integration and Efficiency of Distribution Operations," is a law whose purpose is to improve inefficiencies in domestic logistics, reduce environmental impact, and promote labor savings.

Based on this law, logistics companies can cooperate with multiple other companies to create a plan to build an efficient logistics system (a comprehensive distribution business efficiency improvement business plan) and receive certification from the competent minister, which allows them to receive various support measures (subsidies, tax breaks, financial support, deregulation, etc.).

Key benefits of becoming certified

By receiving certification under the Property Effect Act, you can not only improve the efficiency of your business, but also enjoy significant benefits in terms of management.

Main requirements for certification

• Is it an initiative involving collaboration between two or more entities (separate legal entities, regardless of whether they have a capital relationship)?
• Is it something that integrates transportation, loading and unloading, storage, cargo handling, and distribution processing?
• Will efficiency be improved through the consolidation of transportation networks, modal shifts, and joint transportation and delivery?
• Will it reduce environmental impact and labor in distribution operations (quantitatively calculated)?
• Within a 5km radius of an interchange on a national expressway, a freight train station, a port, a fishing port, an airport, a distribution complex, an industrial complex, or a wholesale market
• For ordinary warehouses, 3,000 m² for single-storey buildings and 6,000 m² for multi-storey buildings, and 6,000 m³ or more for refrigerated warehouses and storage tank warehouses
• High-standard berths, large vehicle handling and turning areas, data exchange systems, truck sales offices, truck reservation reception systems, cargo storage management systems

Examples of businesses eligible for certification

The certification is available to businesses that carry out distribution operations such as transportation, storage, cargo handling, and distribution processing in an integrated and efficient manner through collaboration with multiple businesses.

Pillars of the businessExplanation of specific methods for improving efficiencyConsolidation of transportation networksJoint transportation and delivery, larger trucksIntegrating the transportation routes and bases of multiple operators to improve loading rates.Modal shiftConversion to rail and shipConverting long-distance trunk line transportation from trucks to rail and ship, which have a lower environmental impact, to achieve both efficiency and environmental measures.Joint transportation and deliveryJoint collection and deliveryMultiple operators will jointly collect and deliver in the same area, reducing the number of vehicles and improving operational efficiency.Joint use of facilitiesSharing of joint warehouses and distribution processing facilitiesBy jointly developing and using specific distribution business facilities, costs will be reduced and operations will be made more efficient.

Certification application flow

To receive certification, you must have a plan that is appropriate in light of the basic policy and that will enable you to carry out your business reliably.

1. Advance consultation (government agency)

At the planning stage, we consult with the relevant Regional Transport Bureau to confirm whether the project is eligible for certification and whether the direction is appropriate.

2. Planning

A comprehensive business plan for improving the efficiency of distribution operations will be prepared. The plan will include a detailed description of the project outline, implementation period, involved businesses, goals for improving efficiency and reducing environmental impact, and matters related to the development of specific distribution business facilities (if applicable).

3. Coordination with relevant government agencies

If necessary, we will coordinate in advance with administrative agencies (such as local governments) involved in development permits and other laws and regulations.

4. Formal application of business plan

A formal application for the business plan, along with the necessary supporting documents, is submitted to the competent minister (e.g., the Minister of Land, Infrastructure, Transport and Tourism).

5. Examination and Certification

The application will be reviewed to see if it meets the requirements and the reliability of the business. If the review is successful and the requirements are met, certification will be issued.

Our companyAbout services

Process to certification

Achievements

When expanding an existing commercial warehouse located within an urbanization control area, we were able to obtain special development permission by receiving certification under the Property Effect Act, and we were able to complete the warehouse expansion.

In addition, we provided comprehensive support for the application for warehousing registration and general freight truck transportation business license application procedures in line with the Material Utilization Law certification plan.

Benefits of requesting

Obtaining certification under the Property Effect Act requires complex planning and coordination with government agencies.

We will listen to your company's business details and challenges, and provide total support, from formulating a feasible business plan that meets the certification standards, to prior coordination with relevant government agencies and the formal application process.

If you are considering the use of physical effects law, please feel free to contact us.