– UK-Based Tesco, a World-Leading Logistics & Retail Firm, Will Invest in a Fresh Grocery Logistics Service Center in Anseong Logistics Complex –

Anseong Logistics Complex, the nation’s largest advanced logistics complex, which was built by Gyeonggi Province and Anseong City, will soon accommodate a large-scale logistics center. Samsung Tesco, a foreign-invested global retail leader, will invest USD 100 million (FDI-based) into the logistics center. This comes on the heels of the recent investment of USD 500 million (FDI: USD 0.3 billion) by the world-largest logistics infrastructure developer, ProLogis.

Gyeonggi Province held the MOU signing ceremony for the establishment of the fresh grocery logistics service center in Anseong Logistics Complex at the InterContinental Hotel located in Samseong-dong, Seoul, at 11:00 on May 7, 2008. Gyeonggi Governor Kim Moon-soo, Deputy Minister of Knowledge Economy Lee Jae-hoon, Mayor of Anseong Lee Dong-hee, and Managing Director of Samsung Tesco Michael Iddon attended the ceremony.

Mr. Iddon said, “We will build a large-scale fresh grocery logistics service center that will serve as a fresh goods logistics hub for the Seoul metropolitan area and the central region. The initiative aims to respond to ever increasing logistics volume, which has been fueled by the dramatic growth of China’s economy and the expanding consumer market of the metropolitan area.”

The logistics center will be built in Chilgok-ri, Wongok-myeon, Anseong City, and will accommodate advanced logistics facilities, such as refrigerators, freezers, workhouse, tray washers (automatic washers for fresh produce), and a training center, on a lot with an area of 120,000m2 and with a floor space of 49,587m2.

Most notably, the center will be equipped with eco-friendly construction equipment and advanced logistics facilities, to operate the proprietary Multi Cold Chain System and Primary Distribution System of Samsung Tesco. The new systems will reduce the delivery time from suppliers to consumers, responding to consumer need for fresh agricultural, livestock, and marine products as well as frozen foods, while helping partners to significantly reduce logistics costs.

Deputy Minister of Knowledge Economy Lee Jae-hoon, who joined the ceremony on behalf of the central government, said, “The government is operating a P/T team to support the early construction of the Anseong Logistics Complex, and is reviewing measures to ease regulations and improve the investment environment in a wide range of areas, including education, medicine, and housing, in order to strategically attract global companies in the future.”

Gyeonggi Province Governor Kim Moon-soo said, “The fact that global logistics and retail leaders such as ProLogis and Tesco have decided to invest in Anseong proves that Anseong is a transportation hub of Korea, and has a competitive edge as a logistics hub of the province and the inland areas. The province plans to link the Anseong Logistics Complex with the Pyeongtaek Port Logistics Complex, which has shown the most dramatic growth of any such complex in the nation, to form a world-class logistics hub that can lead the logistics industry of the Seoul metropolitan area and the central region. The province will provide all possible administrative support for the successful completion of Tesco Logistics Center in December 2012, and will work in full cooperation with the related government agencies, including the Ministry of Knowledge Economy and the Ministry of Land, Transport, and Maritime Affairs.”

Mayor of Anseong Lee Dong-hee said, “As the place where the Gyeongbu Expressway, the Jungbu Expressway, the Pyeongtaek-Eumseong Expressway, and the Cheonan-Bundang Expressway meet, Anseong has enormous growth potential as a transportation hub. Nevertheless, the Seoul Metropolitan Area Readjustment Planning Act and the balanced development policies have hindered the city’s development plans, which has resulted in frustration for our residents. As the city is now permitted to construct a large-scale logistics center that can fully utilize its geographical advantages, we expect that we will develop into a self-sufficient city thanks to the stimulation of the regional economy and the job creation that will result.”

The signing of the MOU by Gyeonggi Province is significant in that it is the result of efforts to attract investment in the service sector based on partnerships between the central government and the local governments. The Ministry of Land, Transport, and Maritime Affairs considered the construction of the Anseong Logistics Complex when it allocated logistics volumes and established its basic urban development plan.

The fresh grocery logistics service center to be built by Samsung Tesco is different from other logistics facilities in that it incorporates more than 20 ways to save energy and eco-friendly concepts from the construction stage with the aim of reducing CO2 emissions in accordance with the Kyoto Protocol to the United Nations Framework Convention on Climate Change. When completed, the center is expected to bring huge economic benefits, including an annual traffic volume of KRW 1 trillion, annual employment creation of more than 1,000 jobs, and the advancement of the logistics industry through the introduction of diverse advanced logistics systems, such as the Multi Cold Chain System