The Trends and Potential for Food Industry Clusters in Korea

Abstract

So far, Korean rural areas could hardly have chances to arising food industry clusters, due to weak industrial infrastructure of non-agriculture sectors. However, for adjust to WTO Agriculture Agreement upon implementation, the government took the various measures in domestic agriculture policies be focused on the development of regional-agriculture cluster and branding of agricultural production. Followings are characteristics and problems concerning to agricultural policy and challenges be related to food industry cluster in Korea.

First, the agri-food policy has been actively involved to the branding of agricultural productions and development of agri-food cluster in Korea. The development of standards in the marketing of food distribution, branding guidance to agricultural products and pilot projects for the food cluster formation, are the related efforts. Secondly, the most noticeable pattern is to expand the business area as like production line expansion and finding service or processing sectors in local level agri-food cluster. Thirdly, many factors prevent the development of the cluster be required cooperation as well as competition among related local companies. To point out problems, it could be summarized spot transaction on products sales, exclusive in-sourcing led by production side and dependence on government subsidies.