- Investment Opportunities
- Location Report
Since the Miracle on the Han River, South Korea has experienced exponential growth across all sectors. The food and beverage industry of Korea was no exception. From a country that barely produced enough to feed themselves, Korea has emerged as a strong exporter of food products. In recent years, its food manufacturing industry has grown at a rate of 6.8 percent per year, while the food service industry recorded a growth rate of 8.9 percent. In terms of market size, Korea is the 14th largest food market in the world.
The size of Korea’s food industry is
expected to break through the KRW 200
trillion (USD 183.8 billion) mark and the
local governments are further developing
the country’s food industry clusters. These
include the I-Food Park in Incheon and the
Goesan Agricultural and Industrial complex.
Located in Incheon, Korea’s logistics haven, I-Food Park is the first food industry cluster to be established in the capital area. Spanning across a land of 261,000 square meters, the cluster will gather various food manufacturers, ultimately increasing the industry’s potential. The cluster will be completed in the second half of 2018, and is expected to cost a total of KRW 140 billion (USD 128.66 million).
The I-Food Park aims to create jobs, increase investments and vitalize the economy of Incheon. The cluster is expected to create 16,000 jobs for locals and bring in KRW 890 billion (USD 817.91 million) in economic impact to the region. Already, there are about 40 companies that have expressed their desire to move into the cluster.
The park will provide cutting-edge infrastructure for resident companies, allowing them to find and successfully enter overseas market, including the Chinese market. R&D centers, Hazard Analysis and Critical Control Points (HACCP)-related facilities and logistics complexes will be established to further develop the food industry.
In addition, the cluster aims to modernize the manufacturing facilities which will allow the businesses to operate with efficiency allowing them to produce cheaper and provide higher quality products for the consumers. Like any other cluster, the I- Food Park also hopes that the latest technology and knowledge related to the industry can be shared amongst the resident companies, further developing their manufacturing capabilities. The businesses that move in to the cluster will receive various tax-related benefits and will be able to easily access Incheon airport and Incheon port.
Goesan Agricultural and Industrial
At the very center of Korea is a city in which the world’s first organic produce exhibition was held. The city is Goesan, a mecca for the fermented food and organic produce industry. Due to its incredible positioning, all of the businesses that reside in its Agricultural and Industrial Complex are able to reach any part of the country in just a few hours.
Next to this complex is the Goesan Fermented Food Agriculture-Industrial Complex and the Organic Produce Industrial Complex. The fermented food complex was established with a cost of KRW 26 billion (USD 24 million) and already there are 12 businesses that are doing business in the 323,511 square metered cluster. The complex provides top-class infrastructure including two newly built factories. Its beverage factory has the capability of producing 9 million bottles of beverages (soy milk, fruits and vegetable juice) per year. The milling factory can grind 20 tons of rice per day, and is operated with the goal of reducing production costs and increasing the income for agricultural households.
The Organic Produce Complex covers 628,497 square meters and hosts environmentally-friendly logistics and companies related to food manufacturing, especially those that are experts in organic produce.
The clusters that have been introduced here are all working towards the common goal of supporting the continuous development of the Korean food and beverage industry. They also seek to boost the regional economy, and ultimately the economy of the country. Most importantly, these clusters aim to provide high-quality, safe and affordable products for consumers. With the complexes providing a solid foundation, the food and beverage of industry of Korea is set to accelerate its growth and development.