New Growth Engine of Emerging Food Market - Part2
11 Nov 2015 | Foodpolis
The FOODPOLIS initiative is one of the biggest food R&D investment projects in the world. The food cluster is designed to be a new center for Northeast Asia’s food market.
Brought to you by
Ladies and gentlemen, thank you for being with us today.
My name is Dennis Cho from Agency for Korean National Food Cluster.
Today I will introduce you to the food policy projects and investment opportunity.
This presentation is categorized into 5 parts, the background of food policy projects, business environment of Korea, food policy plan, and incentives.
Please report to this chart, which is based on materials from the Closter Initiative Green Book.
You can see the basic roles that clots have come to play.
We see this in all our case studies and researches, and it is a network of collaborative efforts that we are trying to create at food.
Our agency is going to push ahead to develop the identity of the cluster and pitch its merits to investors around the world.
Food valley in the Netherlands is most developed food cluster.
In the world, the cluster was formed in 2004 and has expanded its members from 115 to 234.
Today there are more than 1400 companies that are directly involved or supporting the work.
In total, 70,000 people are employed in 21 research centers.
In 2013, Hanes established Innovation Center.
In food belly Denmark established Agro-Food Park in 2009 with 15 companies and 700 knowledge workers.
Since then, they have more than doubled to 48 companies.
And there are 50 food research groups in Copenhagen alone.
And the question, of course, is why can't Korea make a cluster?
Korea has been successful at developing the economy here.
We have world-class companies that are either top of their field or are knocking on door.
But where is food on this agenda?
As we look around for new growth engine, we identified the agri-food industry as one in which we were undeveloped, but in which there is tremendous market potential.
Our research shows that we are roughly the same size as the Netherlands in terms of land, but our exports are comparatively non-existent.
In fact, our country is faced with tremendous opportunity for growth.
Our industry is small today, but our market opportunities are massive.
We are located between two large players whose demands for food continue to grow.
And the Asia Pacificig food market will be the largest in the world in 2020.
We have been a strong and leading members of the international trading community, and we have concluded FTA with 42 countries, including North America.
Europe and Asian countries, and we are the member of, OECD and WTO.
We are also a great place to do business.
Korea gives you access to outstanding human resources.
And our credit rankings are solid.
And you won't find faster internet or better communication service anywhere in the world.
We also have a low corporate taxes, low cost of doing business, and high ranking for easy of doing business.
Now I'm gonna introduce food policy project plan.
The Korean Ministry and local governments are creating food cluster in South Korea, Ian City.
The location is Yan City, the famous bread basket that will be completed on June 20, 2017.
The total size is 358 hectares.
Ian City is located in the center of South Korea.
The 4 highways and 2 railroads are connected with Ian City.
It takes only 68 minutes from Seoul, our capital, to Ian City by new express train, and Kunshan Seaport and airport are very close to Ian City.
Food the policy is developing into two parts, industrial area and industrial area.
In industrial area, there will be the enterprise support facility system and private research facilities, facility.
And future strategic food zone and for.
Especially number 4 is the foreign investment zone, displacing for for the overseas food companies, and we also created waste treatment facilities.
And in Leongzhu area, there'll be houses and the university university and education facilities and the hospital.
We are going to develop a variety of support programs that can bring the members together and create a dynamic linkage that can foster innovation and share the growth.
The the Food Functionality evolution Center, Food packing Center, and Food Quality and Safety Center.
We call these 3 island centers.
We will offer you the one-stop island services via these facilities.
To develop high value added product and pilot plant to manufacture the prototype and rental plant to incubate middle small companies.
The construction of 6 facilities will be completed next June.
The importance of R&D and making linkage between companies in the cluster.
And for the science and research facilities is critical.
And we will create a strong food intelligence belt that will also include global R&D institutions.
We have various incentives that we have developed to promote investment.
You can see the four basic types here.
Let's look at them in more detail.
Being part of foreign investment investment zone in food policy brings a number of important benefits that companies looking to invest should consider.
To begin with, companies will be exempt, for paying any federal tax.
For the 1st 3 years.
And 50% deduction for the following two years.
That's 5 years of nearly tax-free.
Similarly, there are 100% exemption on local tax for 15 years, so no acquisition tax, no registration tax, and no property tax.
We are also applying tariff exemptions to imports of capital stocks.
And overseas food companies in foreign investment zones can lease the land with only 1% of total purchasing cost for 100 years.
Actually, the port charging cost is around 190 Singapore dollars per square meter.
You also qualify for employment subsidies from Jalabukto and Ikan City.
The laborator provides ¥1 million per person for 6 months when the employment exceeds over 20.
And also Exsan City provides 500,000 Korean won per person for 6 months when the employment exceeds over 20, and you can also have a The training subsidies from Jambuktu and Ikan City.
We also know that quality of life and family is exceptionally important, so we are going to make sure to build written food police an exclusive residential zone of the highest quality and highest quality for families of foreign companies.
There will also be a guest house, international school.
And a clean and natural environment.
We've been working very hard several years to build awareness for food policy and drive investment decisions into the complex.
This is some of the companies and research institutes we have signed investments MOU with.
We have concluded investment MOU with 113 food companies and research institutes in 16 countries.
They will be your available network to for exports and sharing technology.
A great number of global food companies are currently working with food police, with the partnership of many global food companies R&D centers.
And global food clusters.
The future is bright for food.
Please come to, come and see for the police.
We will be the fastest track to success in the food industry.
And actually food police reopened the stand at Asia Pacific Food Expo organized by SFMAE.
Please stop by our booth.
The number is 25 to 28 from November 20 to 23.
Thank you for your time.
