10 l September 2016

Korea has the 17th largest foodmarket in the world, worthapproximately USD 56.9 bil-lion. That’s huge for the glob-

al food industry, which is expected to beworth USD 7 trillion by 2020, andexperts predict the Asia-Pacific region tomake up 40 percent of the market. In par-ticular, Northeast Asia’s food industryhas shown steady annual growth of over30 percent since 2010.

The growth of the food industry is ahigh priority for the Korean government.In 2008, the Ministry of Agriculture,Food and Rural Affairs established thefirst government-supported food industri-al complex in Iksan, nicknamed ‘Foodpo-lis’, as a testament to its dedication to theindustry.

Iksan CityThe government devoted 2.3 million ㎡

of land in Iksan City in North JeollaProvince to this complex, as well as touniversities with food research experi-ence. Generous financial incentives werealso provided, as the government has ear-marked USD 474 million for the project.

The seaside city of Iksan is also locat-ed close to major transportation pas-sages. National highways, including theHonam Expressway, run through thecity, while it takes just 68 minutes toSeoul and 27 minutes to Sejong City viathe KTX. Three harbors (Gunsan, NewSaemangeum and Dangjin Harbor) arelocated within an hour of Iksan, whilefour airports are within driving distance.

The city of Iksan, in particular, isstrategically close to China and other sig-nificant neighboring markets, includingHong Kong and Japan.

FoodpolisThe industrial complex of Foodpolis,

also known as "Food Science Park" con-sists of six zones: the enterprise supportfacilities zone, a private research zone, a

strategic food zone, a foreign investmentzone, logistics/distribution zone and thegeneral food zone. A waste treatmentfacility is also available within the com-plex.

A number of companies have alreadybeen closely eyeing this cluster. Koreancompanies such as Harim Corp., AZSystem, Wonkwang Pharmacy, JounHealth and BTC have signed leases. Sixforeign companies have filed paperworkto facilitate a move into Foodpolis,including Hampton Grains of the U.S.and Czech brewer Gold of Prague.

The residential district is also underconstruction at Foodpolis, and this areawill include apartments, schools and com-mercial properties by 2018. Food-relatedtheme parks and cultural faculties are alsounderway–the Global Food Theme Parkand the Food Museum are just some ofthe examples of the largescale projectsplanned for the district.

Benefits & IncentivesFurthermore, government incentives

have made the area an appealing invest-ment destination. They include corporateincome tax exemption for five years (100percent for three years, 50 percent for the

following two years), 100 percent taxexemption from local taxes for 15 years,tariff exemption on capital goods importfor five years and up to 75 percent reduc-tion on land leases for 50 years.

Resident employees from Jelloabukdoare also eligible for a stipend up to KRW1,000,000 (USD 991) per month forevery new employee hired beyond 20people, while Iksan city employees areeligible for a stipend of up to KRW500,000 (USD 455.50) per month forevery new employee hired beyond 20people. Up to KRW 500,000 (USD 449)in education and training is also providedevery month.

Foodpolis is expected to create 23,000employment opportunities and an esti-mated economic value of USD 4 billionfor Korea. The area is also expected toincrease the value of the overall foodindustry by creating a more advancedindustrial structure and a competitiveatmosphere.

For more information,visit http://eng.foodpolis.kr

Zone

Iksan, Korea’s National Food Cluster