Invest KOREA

[Photo by The Minister of Trade, Industry and Energy]

According to Pulse by Maeil Business News Korea,

The South Korean government will increase support for “agri-tech” or advanced agriculture companies, including vertical farms, to expand overseas.

Minister of Trade, Industry and Energy Ahn Duk-geun and Minister of Agriculture, Food and Rural Affairs Song Mi-ryung announced the initiative on Tuesday at Plan T Farm, a Pyeongtaek-based company specializing in vertical farming.

Vertical farming is a commonly known smart farming technology that integrates advanced technologies such as information and communication technology (ICT), robotics, and artificial intelligence (AI) to automate farming processes, including temperature and humidity control, within indoor, multi-level structures.

The government will relax regulations to allow for the establishment of vertical farms on designated agricultural land and amend laws to include vertical farming in the list of industries eligible to occupy industrial complexes.

Various measures will also be taken to improve the competitiveness of vertical farming enterprises. Support will focus on technological advancements such as sensor, ICT, and robotics upgrades starting in 2024, with expanded policy support for smart farm ICT convergence projects and the addition of vertical farms eligible for smart farm support. Smart farms will also qualify for trade insurance preferences from April 2024 onwards, providing exporters with benefits such as increased insurance limits and premium discounts.

The global vertical farming market is experiencing rapid growth, with a high export potential for Korean companies that is being recognized by the government. According to global research firm MarketsandMarkets, the market is projected to top $15.3 billion by 2028, up from $4.2 billion in 2023, and smart farming’s global expansion is particularly noticeable in the Middle East region.

“If vertical farms can be situated in industrial complexes, there will be significant synergy effects for the simultaneous growth of both upstream and downstream companies,” Ahn said.

Plan T Farm, where the meeting was held, is a leading Korean vertical farm operator alongside ALGA Farmtech, Dreampf Corp.‘s Dream Farm, Daehan Steel Co.’s Gref, and N.thing Inc. According to Plan T Farm, its operation produces over 140 tons of lettuce per month across seven vertical farms nationwide, a production level that exceeds conventional outdoor farms by more than 40 times.

“Vertical farming can dramatically reduce the cost of producing crops by using the waste heat generated during the production process. Vertical farms are also environmentally friendly, as they can also prevent the influx of pollutants with closed environments and use industrial complex infrastructure such as water, electricity, and wastewater treatment,” Plan T Farm said.



By Kim Si-gyun, Lee Jin-han and Chang Iou-chung

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (March 27, 2024)