N.THING Launches KRW 100B Logistics-Hub Vertical Smart Farm Development

Smart vertical farm leading company N.THING is officially commencing the development of a 100 billion KRW logistics center-type smart farm using project financing (PF). This is a new concept agri-food infrastructure that integrates production and distribution, addressing the instability of fresh vegetable supply caused by the climate crisis and agricultural aging, and meeting the demand of large domestic and international distribution and food companies. N.THING is creating industrial agricultural assets by combining logistics hubs and food production facilities, and is pursuing phased expansion through PF collaborations with domestic and international logistics and infrastructure developers, financial institutions, and others. It plans to attract investors and finalize development plans, aiming for the first PF closing in the second half of this year. Established in 2014, N.THING has attracted over 32 billion KRW up to Series C and aims for an IPO in 2027. It possesses proven technological capabilities, having won the CES Best of Innovation Award in 2020 for 'CUBE,' the world's first modular smart farm, and acquiring a TCB TI-2 rating. Through collaborations with E-Mart, Baemin (B-Mart), Samsung Welstory, and others, it has already demonstrated the economic viability and quality stability of vertical farms. This project will minimize the physical distance between logistics centers and farms, leading to reduced logistics costs, improved freshness, and faster supply, while also strengthening revenue stability through mid-to-long-term supply contracts. N.THING's vertical farm in Icheon, Gyeonggi Province, shows a 94% reduction in water usage compared to conventional methods, a crop waste rate of less than 5%, and an annual greenhouse gas reduction effect of 34.7 tons. All facilities operate on electricity, which is advantageous for RE100 transition. With cultivation data and IoT-based environmental control technology, it boasts over 40 times higher productivity than open-field farming and stably supplies over 1.12 million packs (120 tons) of various vegetables annually to E-Mart and others. In 2023, it obtained pesticide-free and GAP eco-friendly certifications, as well as the 'Environmental Product Declaration certification' for the first time for a vertical farm, thus gaining recognition for its ESG values. Its 'Root-living Vegetables' brand has recorded 10 million views on social media, delivering differentiated freshness to consumers. Government deregulation related to vertical farms (allowing entry into agricultural land and industrial complexes, exemption from agricultural land preservation charges, expansion of VAT refund eligibility, etc.) and policy support are also crucial foundations for this project. The global smart farm market is projected to reach $33 billion by 2027 (annual average growth of 17.2%↑), and the vertical farm market, in particular, is experiencing high growth of over 25% annually due to the importance of food security and climate change response, with surging demand in regions with low food self-sufficiency, such as the Middle East and Southeast Asia. Kim Hye-yeon, CEO of N.THING, emphasized, "Vertical farms have evolved into industrial assets capable of year-round food production within urban infrastructure. Based on proven technology and operational experience, N.THING will lead large-scale PF projects, realizing its vision of 'a company that feeds the world' through the industrialization and globalization of smart agriculture."