□ The Ministry of Oceans and Fisheries (MOF, Minister Moon Seong-hyeok) and Incheon Port Authority (President Choi Jun-wook) announced on the afternoon of the 24th that they had signed a 'business promotion contract for the establishment of an ultra-low temperature distribution center in a Cold Chain Specialized Zone**' with Belstar Superfreeze (consortium*).

* Korea Gas Corporation, Korea Gas Technology Corporation, EMP Belstar, Belstar SF Holdings, Korea Superfreeze Inc.

** Location / Total floor area / Project period: Incheon New Port Hinterland Complex / 354,000㎡ (11 floors in total) / 2022-2024

□ The signing ceremony was attended by representatives of the consortium, including Choi Jun-wook, president of IPA, Chae Hee-bong, president of KOGAS, Cho Yong-don, president of KOGAS-Tech, Lee Jun-ho, CEO of EMP Belstar, and Kim Jin-ha, CEO of Korea Superfreeze Inc.

□ The MOF revised the 「Guidelines for Management of Type 1 Port Hinterland Complexes」 last year to integrate and characterize similar industries in consideration of the characteristics of each port, and introduced a special zone designation system. The Incheon New Port Cold Chain Specialized Zone to where Belstar Superfreeze (consortium) will move was designated as the first specialized zone in June last year to prepare for the increasing demand for refrigeration of livestock and fisheries products.

□ This new concept logistics center utilizes LNG cold thermal energy discarded by the nearby KOGAS as an alternative source of electricity. As the use of LNG cold thermal energy offers benefits such as reducing electricity bills (up to 70%) and logistics costs, it is expected to not only increase the efficiency of the logistics center operation but also contribute to the creation of a low-carbon, eco-friendly port ecosystem.

□ Belstar Superfreeze (consortium) will invest a total of KRW 521.8 billion over three years from 2022 to 2024 to build a logistics center, handle approximately 290,000 tons of frozen and refrigerated cargo annually, and create 250 new jobs.

□ For this project, KOGAS and KOGAS-Tech are in charge of supplying LNG cold thermal energy and installing and operating related systems. EMP Belstar and Belstar SF Holdings, are major global investment companies, and Korea Superfreeze Inc. operates the logistics center. This project is expected to become the first public-private collaboration project model in the port hinterland.

  * Korea's first low-temperature logistics center that utilizes LNG cold thermal energy was established in Pyeongtaek (March 2019).

□ Going forward, the MOF and IPA plan to provide administrative support so that the logistics center can be built without any setbacks, and actively promote marketing and new route opening activities so that companies can stably secure cargo volume.

□ Jeon Jae-woo, director of MOF's shipping and logistics division, “The participation of KOGAS and KOGAS-Tech has secured the stability and reliability of the project, attracting large-scale private investment including foreign direct investment (KRW 134.8 billion). We will continue to make efforts to revitalize the port hinterland by discovering various projects involving the government, public institutions and the private sector.”

□ Choi Jun-wook, president of IPA, said, “This project is very meaningful as a result achieved in difficult conditions of reduced trade between countries and shrinking trade activity due to COVID-19. We will do our best for ESG (Environment, Social, Governance) management to fulfill social responsibilities, such as carbon-neutral and eco-friendly energy consumption, job creation in the region, and public-private collaboration.”