The Impact of Warehouse Expansion Strategies on Foreign Ownership in Logistics Firms

With the accelerated integration of global capital markets, the influence of foreign investors has been expanding. These investors now consider not only financial performance but also strategic execution and long-term growth potential. Amid the rapid growth of e-commerce, warehouse infrastructure has emerged as a key element in the logistics industry, prompting the need for empirical analysis on how warehouse expansion strategies affect foreign investment decisions. This study investigates the effects of warehouse expansion categorized by type (area and count) and strategic location on foreign ownership in logistics firms. Using data from 2014 to 2022 on listed Korean logistics firms, this study combines warehouse registration data from the National Logistics Information Center with financial data from Fn-Guide. The regression results show that an increase in warehouse area does not have a statistically significant effect on foreign ownership. In contrast, an increase in the number of warehouses significantly increases foreign equity holdings. This effect is further amplified when the expansion occurs in strategic regions, providing empirical evidence of the importance of location-based strategies. These findings suggest that foreign investors respond not only to financial metrics but also to non-financial strategic signals particularly those related to logistics infrastructure. For logistics firms, expanding the number of warehouses and building decentralized networks in strategic locations can enhance foreign investment. Additionally, policy efforts to improve logistics data transparency, develop logistics hubs, and support SMEs can improve the investment climate and strengthen industry competitiveness.