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Rapid Growth of the Korean Processed Food Industry 내용닫기
Rapid Growth of the Korean Processed Food Industry

The development of processed food technology has contributed to improving the quality, and consequently increasing the demand for processed food.
As the Korean certification system for foreign foods has aligned with global systems (such as the Halal certification system), the global demand for Korean processed food has also increased.
Recent demographic changes, such as the increasing number of single person households, have promoted the development of new processed foods and ready-made meals.

The ready-made meal market in Korea reached KRW 977.4 billion in 2019, and thanks to the increasing demand for convenient food, the market posted an annual growth rate of 16.2% between 2012 and 2019.

"Size of Ready-made Meal Market in Korea per Distribution Channel"
2012 (KRW 366.2 billion) → 2018 (KRW 902.6 billion), grew 2.5 times
- Department stores(2012 1% → 2018 1% 0%p)
  
  Lotte Department Store, Hyundai Department Store
- Discount stores(2012 35.3% → 2018 34.9% 0.4%p 하락)
  
  Emart, Home Plus, Lotte Mart, etc. (including some large-sized NH Nonghyup Hanaro Mart locations)
- Supermarket chains(2012 17.4% → 2018 19% 1.5%p 상승)
  
  Emart Everyday, Home Plus Express, GS Supermarket
  
  Cooperative Stores (Agricultural, Fisheries, and Livestock cooperatives stores)
- Convenience stores(2012 17.5% → 2018 20.8% 3.3%p 상승)
  
  GS25, CU, 7-Eleven
- Independent supermarkets(2012 19% → 2018 17.6% 1.4%p 하락)
  
  Private supermarkets
  
  with at least two POSs
- General foods(2012 9.8% → 2018 6.8% 3%p 하락)
  
  Private, small-sized
  
  general food stores
※ Source: aT IRS Food Industry Statistics

Continuous Growth and Strong Exports in the Food Industry 내용열기

Continuous Growth and Strong Exports in the Food Industry

The production of the Korean food industry has maintained an annual average growth rate of 6.04% since 2007,
and the status of the food industry within the manufacturing industries has constantly improved.

In 2019, exports of Korean processed foods reached USD 5.64 billion, with an annual average growth rate of 6.6% since 2010.
The export of noodles recorded USD 610 million, up 10.1% YoY, thanks to strong exports to China and the US. Beverages,
a newly emerging primary product, saw increasing exports to most countries, thanks to Hallyu,
and recorded USD 420 million, up 1.0% YoY.

"Main Indicators of the Food Industry"

Main Indicators of the Food Industry 2007, 2012, 2018, CAGR(‘07→’18)
	2007	2012	2018	CAGR (‘07→’18)
Business entities (Number) Compared to the manufacturing industry (%)	4,257	4,423	5,616	2.55%
	6.9	6.9	8.1	2.55%
Production (USD billion) Compared to the manufacturing industry (%)	52	71	84	6.04%
	5.1	5.0	5.9	6.04%
Added-value (USD billion) Compared to the manufacturing industry (%)	21	24	31	5.19%
	5.9	5.4	6.0	5.19%

※ Source: Statistics Korea, Research on the Mining and Manufacturing Industries

"Food Export Trends "

(Unit: billion )

Food Export Trends 년도별 Fresh, Processed, Marine
Category	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
Processed	31.8	43.3	45.4	45.2	50.3	50.7	53.6	57.3	56.5	56.4
Marine	18.0	23.1	23.6	21.5	20.7	19.2	21.3	23.3	23.7	25.0
Fresh	9.0	10.5	11.1	12.1	11.5	10.4	11.1	11.0	12.8	13.8
Total	58.8	76.9	80.1	78.8	82.5	80.3	85.9	91.5	93.0	95.3

※ Source: Ministry of Agriculture, Food and Rural Affairs (2019), Export and Import Trends and Statistics of Food, Agricultural, Forestry, and Fishery Products.

Global Food Companies Enter Korea to Target Korean and Asian Markets 내용열기

Global Food Companies Enter Korea to Target Korean and Asian Markets

Many global companies have successfully entered the Korean market to target its domestic market and to export to the wider Asian market.

Starbucks entered Korea through a joint venture with Shinsegae, a Korean distribution company, and has continued to grow since opening its first store in 1999.
In 2014, Starbucks held the global launch of its Siren Order service (a mobile order and payment service) in Korea,
driving the rapid growth of Starbucks Korea.

Global Food Companies Enter Korea Country, Name of parent company, Name of company in Korea, Location, Items, Number of employees
Country	Name of parent company	Name of company in Korea	Location	Items	Number of employees
US	Starbucks	Starbucks Korea	Seoul	Coffee store	14,846
US	Coca-Cola	Coca-Cola Beverage Company	Yangsan Gyeongsangnam-do	Beverages	2,333
Switzerland	Nestle	Lotte Nestle Korea	Cheongju Chungcheongbuk-do	Feed, Dairy products	478
US	Dole Food	Dole Korea	Seoul	Packaged fruit products	93
US	Del Monte Foods	Del Monte Fresh Produce (Korea)	Seoul	Beverages, Fruits and vegetables wholesale and retail	75
US	Mars	Mars Korea	Seoul	Chocolate, Snack, Feed	72

※ Source: Korea Agro-Fisheries and Food Trade Corporation, Food Industry Statistics (aTFIS)
※ Footnote: The number of employees in Korea as of 2018.

Preemptively Promote Promising Industries 내용열기

Preemptively Promote Promising Industries

The Korean Ministry of Agriculture, Food and Rural Affairs announced the third Food Industry Promotion Basic Plan in April 2018 and selected five policies
and a set of detailed tasks to improve the innovative capacity of the food industry, increase added-value in the agricultural industry, and contribute to the economic development of Korea.
The Ministry will promote promising industries, such as Home Meal Replacement (HMR) and functional food,
develop new technologies to respond to the Fourth Industrial Revolution, and lay a foundation for the growth of related industries, such as food ingredients and packages.
The ministry is also promoting the export of agro-foods and entering overseas markets as well as forming an innovative ecosystem for the food industry.

FOODPOLIS Korea National Food Cluster 내용열기

FOODPOLIS Korea National Food Cluster

The Korea National Food Cluster established in Iksan, Jeollabuk-do in 2018 focuses on five strategic foods: high-tech convergence foods like functional and bio foods, fermented foods,
ingredients such as food additives, processed foods like rice, and items of personal preference.
The cluster features strong locational strength as a primary networks of roads, railways, airports, and ports is located nearby.
Comprehensive logistics companies have been designated to support the logistics of resident companies at low cost and with high efficiency.

"Major Logistics and Port Locations in Korea"

※ Source: FOODPOLIS Korea National Food Cluster website
※ Inquiring with the Consumer Goods Industry PM regarding eligibility and detailed conditions

"FOODPOLIS Korea National Food Cluster Land Planning"

FOODPOLIS Korea National Food Cluster Land Planning Category, Area, Number of companies, Invited businesses
Category		Area	Number of companies	Invited businesses
Industrial facilities	Strategic Food Zone(intensive fostering)	350 thousand ㎡	50	High-tech convergence foods, fermented foods Ingredients, convenient foods, rice processed foods, items of personal preference
	Global Food Industry Zone	450 thousand ㎡	30	Location for foreign-invested companies
	Logistics and Distribution Zone	100 thousand ㎡	5	Logistics and home delivery related businesses Distribution (transportation) related businesses Storage (low-temperature and cold storage)
	General Food Zone (Local Food Specialized Zone)	500 thousand ㎡	50	Baking, confectionery, noodles, beverages, regular liquor Processed meat, dairy, and fishery products
	Food-related Industry Zone	100 thousand ㎡	15	Packaging, containers Food processors Seasoning, food additives
Food R&D Zone		54 thousand ㎡	10	Private research institutes, companies, university affiliated research institutes
Business Support Zone		94 thousand ㎡	6	Food functions, safety, packaging center Pilot plant, lease factory, support center
Theme Park Zone		244 thousand ㎡	-	Parks, global theme parks, reservoir
Housing Complex		413 thousand ㎡	-	Housing sites, public facilities like wastewater treatment center Roads, green spaces

※ Source: FOODPOLIS Korea National Food Cluster website
※ Source provider: Korea Institute for Industrial Economics and Trade

Invest KOREA

Food/Fashion/Beauty PM

Chung Bo Young Key Industries Promotion Team

T.+82-2-3460-7888

Recommendation on Locations

BEST1

[Jeollabuk-do Iksan City]

National Food Cluster (Small and Medium Cooperation for Foreigners)

Designated area(m2) : 116,000
Management : Korea Industrial Complex Corporation
Nearby Railway : Iksan Station (16km)
Nearby Airport : Gunsan Airport (59km)

BEST2

[Incheon Metropolitan City Seo-gu]

I-Food Park

Designated area(m2) : 281,471
Management : Incheon Metropolitan City Office
Nearby Railway : Bupyeong Station (22km)
Nearby Airport : Gimpo International Airport (22km)

BEST3

[Jeollanam-do Yeongam County]

Yeongam Specialized Agricultural Industrial Complex

Designated area(m2) : 116,307
Management : Jeollanam-do Yeongam County
Nearby Railway : Imseong-ri Statioln (39km)
Nearby Airport : Gwangju Airport (45km)

BEST4

[Jeollanam-do Jangheung County]

Jangheung Bio Food Industry Complex [formerly: Haedang]

Designated area(m2) : 2,892,052
Management : Jeollanam-do Jangheung County
Nearby Railway : Boseong Station (22km)
Nearby Airport : Gwangju Airport (69km)

BEST5

[Gangwon-do SokchoCity]

Daepo 1st Agricultural Industrial Complex

Designated area(m2) : 177,280
Management : Gangwon-do SokchoCity
Nearby Railway : Gangneung Station (70km)
Nearby Airport : Yangyang International Airport (17km)

BEST6

[Chungcheongbuk-do Jincheon County]

K-Food Valley [formerly: Songdu]

Designated area(m2) : 831,966
Management : Chungcheongbuk-do Jincheon County
Nearby Railway : Jeungpyeong Station (22km)
Nearby Airport : Cheongju International Airport (27km)