SK Inc. invests 25 billion KRW in cold logistics company Belstar... Joint 2nd largest shareholder with Goldman Sachs

[Asia Economy Reporter Park Soyeon] SK Inc. has secured the position of the second largest shareholder in a global cold chain logistics company, strengthening its logistics competitiveness. Cold Chain refers to a low-temperature distribution system that maintains the storage and transportation processes of fresh foods and other products at low temperatures to ensure quality.

On the 13th, SK Inc. announced that it has become the second largest shareholder by investing 25 billion KRW in Belstar Superfreeze (hereafter Belstar), a cold chain logistics company, jointly with investment bank Goldman Sachs. Both parties also hold the option to invest an additional total of 25 billion KRW, with 12.5 billion KRW each, within the next year.

Belstar is a company that possesses technology utilizing LNG cold energy in cold chains. It was established in 2014 by the US private equity firm EMP Belstar. The largest shareholders are EMP Belstar and China International Trust Investment Corporation, who share the equity.

Domestically, Belstar completed a modern low-temperature logistics center on a 28,000-pyeong site in the Oseong Industrial Complex, Pyeongtaek City, Gyeonggi Province, in April last year, and has been operating it since June. Starting this year, it plans to expand its business by participating in the development project of the ultra-low temperature complex logistics center, which will be the largest in Korea, to be established by Incheon Port Authority in the new port hinterland of Songdo International City, Incheon.

Belstar’s distinctive competitive edge lies in its technology that recycles cold energy generated during the process of converting liquefied natural gas back into gaseous form in an ultra-low temperature environment of minus 162°C as a refrigerant for low-temperature logistics. This technology not only allows the reuse of wasted LNG cold energy but also prevents environmental pollution that could occur by discharging seawater used in vaporization back into the sea. Compared to conventional electric refrigeration methods, it can reduce electricity costs by up to 70%, offering excellent cost competitiveness. Belstar operates its own LNG cold energy research institute and holds four domestic patents and one international patent.

According to the UN’s Food and Agriculture Organization, due to the absolute shortage of low-temperature logistics infrastructure and immature cold chain operations, the food loss rate during distribution in Asia is about 56%, which is two to three times higher than that of developed countries. In Korea, less than 10% of low-temperature logistics center facilities have been completed within the last five years, indicating significant aging. Through this investment, SK Inc. expects to enter the ultra-low temperature logistics market with high growth potential and accumulate expertise in high value-added logistics sectors such as biopharmaceuticals, premium fishery products, and pharmaceuticals requiring temperature and humidity control.

Based on its unique technology and business development experience, Belstar is expected to participate in numerous new LNG cold energy-based cold chain logistics center development projects led by domestic public enterprises and local governments. Furthermore, SK Inc. plans to build a cold chain network across Asia through collaboration with various partner companies within the group.

Focusing on future growth engines such as biopharmaceuticals, new energy, and semiconductor materials, SK Inc. entered the logistics business in 2017 by investing in the global logistics company ESR (E-Shang Redwood Group). Due to the explosive growth of e-commerce, the value of SK Inc.’s stake doubled within two years, and recently ESR successfully listed on the Hong Kong Stock Exchange.

An SK Inc. official stated, "While demand for cold chain infrastructure in the Asia region is rapidly increasing, the supply of modern infrastructure is severely insufficient. By combining Belstar’s proprietary technology with SK Inc.’s business know-how and extensive global network, we believe we can secure a leading position in the Asian cold chain market."

This content was produced with the assistance of AI translation services.