April 15, 2015
Following the example of The Netherlands, home to a mega food industry hub called Food Valley that generates $64 billion annually, South Korea’s Ministry of Agriculture, Food and Rural Affairs is investing $500 million to build a mega food industry complex on a site just under one square mile, designed to attract global food businesses looking to gain market share in Asia. Upon completion in 2016, the complex is expected to generate $14 billion annually with 150 companies and 10 research centers in residence.
The global food industry is forecast to be worth $7 trillion by 2020, with Asian-Pacific markets accounting for 40% of that growth. The creation of Foodpolis is part of South Korea’s plan to capitalize upon this growth, positioning its agribusiness and food sectors as drivers behind its economic expansion.
Korea’s goal is to gain a food export value of $30 billion by 2020 – up from $8.25 billion last year, to become one of the world’s top ten food exporting nations. To reach this goal, South Korea is building Foodpolis to leverage its Korea-China Free Trade Agreement to attract global food companies seeking to gain entry and market share in China’s growing market.
South Korea is at the center of Northeast Asia – home to a population of 1.6 billion, and is two hours by plane to over 60 major cities, each with a population of over 1 million. In addition, its ease of exporting to China, Japan and Southeast Asia, its business expertise, information technology, business incentives to foreign investors, and its reputation with Chinese consumers as a source of safe, high quality food make it an ideal location for overseas food businesses.
To those companies interested in investing in Foodpolis, the South Korean government is also offering an exemption from income taxes for the first three years and a 50% exemption from income taxes for the following two years, plus a 15 year exemption from property taxes. The complex will also support investing companies with wastewater treatment, low-cost electricity, research and development centers where companies can use the equipment at no charge, residential complexes, hospitals, foreign schools, and other urban services and facilities.
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