NeTruck House of SK Energy offers a “one-stop service” to truck drivers by providing various services in one place: parking lot for large trucks, maintenance and repair garage, gas station, and all kinds of resting facilities for drivers. NeTruck, which has been highly praised by truck drivers since 2006, is acknowledged as having created not only economic value but also social value as a representative DBL⁽¹⁾ achievement of SK Energy, a subsidiary company of SK Innovation.

(1) DBL: Double Bottom Line, the management strategy of pursuing both economic and social values

| Truck drivers’ distress: “It is difficult to eat or bathe.”

Although truck drivers play an important role of taking care of the country’s on-the-ground logistics, they are exposed to poor working conditions and many risks of accidents. Having to transport freight as quick as the shippers demand, truck drivers suffer from the pressure of “having to be on time.” Besides, they have to seek gas stations that are cheaper even by little and drive at night when tolls are exempted in order to save on the cost of oil and expressway tolls, which account for most of their expenses. Such a working environment that disrupts their biorhythm eventually sometimes leads to accidents from dozing off at the wheel and other traffic accidents. Furthermore, because they spend much time alone for a long time, many suffer from work-related diseases, such as cardiovascular disorders, backache, and depression.

| SK Energy’s NeTruck House – A service area for truck drivers to rest and refuel at one-stop

SK Energy’s NeTruck House was precisely created to meet these needs! It is a resting facility that provides all the convenient facilities for truck drivers, who suffer from the pressures of being on time, oil prices, and tolls, to rest.

Truck drivers stopping by a NeTruck House can use all the facilities they need during their long drive on the road in one-stop. They can sleep, take a shower, enjoy a meal, and do laundry at the Convenience and Relax Areas, as well as enjoy low parking fees and comprehensive maintenance and repair services. They are far better and different to general service areas for trucks operated by the Korea Expressway Corporation. NeTruck House’s one-stop services help save on time, oil, and toll fees.

In addition, NeTruck House contributes to taking care of the physical and mental health of truck drivers. Inside the House, there are a free fitness room where drivers can work out even if briefly, and rooms for playing table tennis and game of go, and other simple games to release stress.

| Why NeTruck House was made

Truck drivers having difficulty using general service areas need service areas exclusively for trucks⁽²⁾ with large entry roads and parking spaces. However, service areas for trucks are located on some expressways only, and they are far lacking because of all kinds of regulations and Not In My Back Yard (NIMBY) movements of the local residents.

In addition, although public garages can be used for truck parking, they are inappropriate for drivers to take a long rest, according to many drivers. They lack proper resting facilities and are mostly located in odd corners that they are not easily accessible. Despite these problems, the central or local governments had difficulty advancing into the service area business exclusively for trucks because of a lack of actual business experience and financial burden from the long-term operation.
(2) Service area for trucks: Facility that provides the necessary functions for the transportation of freight, such as resting facilities, parking space, vehicle maintenance and repair, and refueling facilities where truck drivers can take a rest, load or unload, and stand by (Clause 10, Article 2 of the Trucking Transport Business Act)

▲ NeTruck House in Sanggae-dong, Ulsan, Korea

SK Energy started the NeTruck House business in order to promote the welfare of truck drivers while simultaneously alleviating the burden of operating such services of central and local governments. SK Group’s late Chairman Chey Jong-hyun’s statement, “Pursue the company’s socially responsible activities for truck drivers,” played a significant role in the decision to start this business. The business started with the establishment of NeTruck House in Gwangyang in 2006, which provides “quality space to rest” for both physical and mental health while saving on time, as well as for networking and conversing with other drivers. As such, it is improving the poor environment for truck drivers.

SK Energy currently operates 19 NeTruck Houses nationwide in Korea, and a total of 5,284 trucks can be parked there. The Houses are all equipped with ▲ a parking lot, ▲ convenience and relax area, ▲ car service area, and ▲ gas station.

The greatest advantage of the NeTruck House is that it acts as a go-between and provides freight information. Office space is prepared for mediators so that truck drivers may easily find work and communicate among themselves. Truck drivers can network among themselves or with shippers for everyone to win-win. In addition, they can use the “NeTruck Friends”⁽³⁾ app to share freight information among truck drivers.

(3) NeTruck Friends: A part of SK Energy’s NeTruck business that started off to build a transparent shipping market and an efficient shipping system,supporting the base for truck drivers to do business and providing the opportunity for win-win growth

NeTruck House promotes the welfare of truck drivers while also ▲ reducing the occurrence of traffic accidents; ▲ solving the problem of illegal parking on the road; ▲ guaranteeing quality rest; and ▲ vitalizing the local economy, thereby creating social value.

At first, SK Energy faced many difficulties in obtaining all kinds of permits, overcoming regulations, and convincing local residents who were opposed. However, SK Energy took charge of investing and operating the facilities, employed first the local residents, and continued to communicate to solve the problems. The company currently provides space for truck drivers to enjoy quality rest and sleep, thereby indirectly contributing to reducing the occurrence of traffic accidents. The Houses are also vitalizing the local economies by opening convenience facilities and leasing office spaces to the public. Moreover, the monthly average refueling at NeTruck House amounts to 600,000 liters, which is 3 to 4 times higher than general gas stations. As such, the Houses are creating economic effects as well.

In the future, SK Energy plans to introduce solar energy facilities in the Houses to reduce greenhouse gases and fine dust so as to solve these socio-environmental problems. The Busan Newport NeTruck House will fully start operating solar energy facilities in September this year. Two additional facilities will start being built, including one in Okcheon, this year. The company plans to build additional facilities nationwide in the future.

Meanwhile, in May this year, NeTruck House had the honor of winning the Korea Logistics Grand Prize⁽⁴⁾. The prize thus acknowledged the efforts made to uniformly improve the welfare of truck drivers, not as a one-shot business. The company won the prize thanks to its having continuously pursued social value, which makes it all the more meaningful.

(4) Korea Logistics Grand Prize: An award given for over 20 years since 1998 by the Korea Logistics Society by discovering companies, groups, or individuals who contributed to the development of Korea’s logistics

▲ SK energy CEO Cho Kyong-mok (left) and Saigon NewPort’s (SNP’s) Deputy General Director Ngo Minh Thuan participating in a ceremony to sign a contract for the establishment of a joint venture

SK Energy signed a memorandum of understanding (MOU) for the joint pursuit of a service area business for trucks with SNP⁽⁵⁾ of Vietnam in August last year, thereby announcing its plan to advance overseas. It is the first time that a service area for trucks is being built in Vietnam. This is proof that NeTruck’s success in Korea has been acknowledged, and the company looks forward to being loved by truck drivers overseas as well.

(5) SNP: Saigon NewPort, a company belonging to the Navy of the Vietnamese Ministry of Defence, responsible for 50% of the cargo volume in the whole country and 90% of the southern region, the top port operation and logistics state-run company of the country

SN Energy’s goal is to build and operate 25 NeTruck Houses by 2022. The company plans to continue creating social value by building more NeTruck Houses and by developing factors that can create additional value.