About 70% of the largest players in the Korean logistics industry are located in Gyeonggi Province, says Bae. Those major players are looking to consolidate operations from the multiple smaller, non-cross-docked facilities that are prevalent in the region, he says.

"Korea is a very small country and there is a very small amount of land for development, so developers like to maximize site coverage," says Bae. "With cross-dock facilities, you end up with fewer leasable square feet, so very little of that type of product has been developed; but we studied the market and of course (users) prefer these types of facilities because they are more efficient."

As for competition, Bae says ProLogis is the first specialized industrial developer in the Korean market. "There have been individual-type developers on a small scale, but global competitors like AMB (Property Corp.) haven't entered the market yet," he says. "There are a few Singapore based investors as well in the market, but they are not developers; they are buying existing facilities."