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Food and Rural Affairs has announced the third basic plan for promotion of food industry

Inexorable rise of food industry 

The Ministry of Agriculture, Food and Rural Affairs has announced the third basic plan for promotion of food industry

They are going out for dinner trend of 2018 and Big Blur. The level of satisfaction with the mind, not price-performance, has emerged as a major competitive power, and the introduction of unmanned payment system and electronic payment method are leading changes in the dining culture.


As of the end of 17, the number of employed people in the food and restaurant industries in Korea was 4.54 million. With 27.3 million employed, about 10 percent of them are employed in the food and restaurant industries.


As the number of working families increases and the number of single households living alone increases, the proportion of eating out is increasing. Changes in diet also affected consumption of agricultural products. The food and restaurant industries are large consumers of 43.4 percent of domestic agricultural products and play an important role as a stable supply and demand of agricultural products.

It is a dynamic field where various new business models are being created through links with broadcasting, tourism, and ICT such as food stalls, food tours, and delivery apps. With the spread of the Korean wave and increasing awareness of Korean food and food products, it is also a promising area to enter overseas markets such as China and Southeast Asia.


However, overall innovation in industries is low as many small and medium businesses are smaller and focus on price competition rather than technology investment. In addition, the domestic market is expected to be stagnant in the long run as the number of people with high purchasing power has gradually decreased due to the low birthrate and aging population. As the number of foreign food imports increases due to increased market opening, competition with foreign companies is intensifying in the domestic market.


In response, the Ministry of Agriculture, Food and Rural Affairs promoted the third food industry to reflect changes in social and economic conditions based on the achievements and evaluations of the previous food industry. Thus, 21 detailed tasks were prepared in five major policy areas to foster food industries with global competitiveness that can compete with the world.
Action for Global Competitiveness Growth ‘ Five Major Policies jeongchaek

First, we will proactively nurture future promising areas.

By preparing promising product standards, expanding R&D investment, and improving regulations, it will focus on developing promising areas such as HMR, aging friendly foods, and functional foods. Regarding the fourth industrial revolution, the government is planning to select next-generation technologies that have huge impact in the food industry, invest heavily in R&D, and promote start-ups related to food technology. In addition, it is going to establish a system that can efficiently support growing food and food industries and support related industries such as food machinery and packaging with its focus on food packaging centers within Korea National Food Cluster

Second, it creates innovative ecosystems in the food industry. 

First of all, it aims to nurture talented people who will lead innovation in the food industry by supporting young people to start businesses. It is planning to expand its hands-on startup training programs through cheongnyeon Youth Startup Support Lab Lab and , Youth Kium Restaurant . and provide policy assistance to food startups first. The ASEAN, which has great growth potential, will also actively expand exports of Korean agricultural products and overseas food franchises by utilizing local distribution channels and water supply networks.

In addition, the government will attract more than 160 companies by 2022 to the food cluster, and strengthen the support needed by six companies to form an innovative base for food companies. By selecting innovative food companies based on R&D so that South Korean food and restaurant industries can secure international competitive edge through securing original technologies, it is going to create conditions for promoting R&D investments and others by focusing on development of innovative food companies.


Third, it supports balanced growth of the food and restaurant industries.


It is going to strengthen cooperation between companies and continue to spread best practices in order to overcome poor industrial structure and managerial instability of food and restaurant industries. In particular, the restaurant industry actively supports cooperation by expanding joint purchase of ingredients, finding and supporting the best restaurants in each region, and established a phased support system from preparation for start-ups to management and changing businesses to help stabilize management. It will introduce a ” 1:1 mentoring system ” for social and small businesses, and nurture excellent small and medium businesses as leading companies through package support.

In addition, a group of local specialized industries was selected to foster food industries that develop evenly by region, and industrialization was promoted based on established food parks and research institutes by item.

Fourth, the link between agriculture and the food industry is strengthened.

The government plans to expand incentives to induce food and food companies to use domestic products, including the introduction of new guarantee insurance for the purchase of domestic agricultural products and the creation of a producer-connected processing farm. In order to enhance competitiveness of traditional food and traditionalism, it plans to expand its consumption base at home and abroad by establishing basic infrastructure such as the Korea Institute for Technology Development (tentative name) and the Korea Center for the Microbiological Industry (2020). Based on the increased brand value and recognition of Korean cuisine through the Pyeongchang Winter Olympics, the government will continue to promote the expansion of Korean food culture and export of food ingredients.

Fifth, we will strengthen the trust of consumers at home and abroad.

To create a safe and consumption-consuming environment, the government will establish a cooperative system with consumers and expand the opportunity for consumer participation in the policy implementation process. It is also going to support production of safe products by strengthening education and consulting of small and medium food companies in response to expansion of mandatory items (based on food safety manager’s certificate of food safety) and secure overseas certifications.


The government plans to implement the plan without a hitch for the next five years, achieve 330 trillion won in overall food industry sales by 2022, increase the number of workers to 26.8 million, and increase the usage of domestic agricultural products to 6.9 million tons. Through this process, the food and restaurant industries will lead innovative growth and establish themselves as job friendly industries.​


Sources : halo top (https://www.halotop.com/) homepage

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