Chungbuk Eumseong Emerges as K-Food Mecca...The Three Factors Perfectly Aligned

Geographical Advantages with Abundant Human Resources and Government Support
Major Companies like Ottogi, CJ Foodville, and Shinsegae Food Establish Production Bases
Pulmuone Factory Expansion... Dongwon Home Food Also Builds Logistics Center

[Asia Economy Reporter Choi Saeng-hye] Since the outbreak of the novel coronavirus infection (COVID-19), countries around the world have been paying attention to K-Food, and Eumseong-gun, Chungcheongbuk-do is gaining attention. Food companies are rushing to produce representative K-Food items such as ready meals (HMR), tofu, ramen, and chicken in Eumseong-gun. With a perfect combination of logistics, workforce, and government support, it is being recognized as an ideal region for food companies to expand their presence.

According to Eumseong-gun on the 24th, there are about 45 food companies within the 12 industrial complexes located here. This accounts for about 16% of the total 282 companies. Numerous types of food and ingredients, including products distributed domestically and exported overseas, are produced here. When converted to added value, the scale amounts to several trillion won annually.

Exterior view of Ottogi Daepung Factory

The largest facility is Ottogi. The site areas of its main production bases, Plant 1 and Plant 2, are 104,853㎡ and 19,699㎡ respectively. The initial investment was about 54 billion won, and currently, the total workforce at the plants is 349 employees. Ottogi produces sauces such as mayonnaise and ketchup, curry products, Ottogi rice, and retort pouch products here. The annual production value is approximately 700 to 800 billion won.

Pulmuone currently operates a dry noodle ramen factory, tofu factory, and fresh noodle factory in Eumseong. In particular, the tofu factory, with a site area of 15,155㎡, is the largest tofu production facility in Korea during the tofu production era. The daily production volume exceeds 180,000 blocks. The fresh noodle factory produces about 280,000 units per day (excluding sauces). As of last year, the export volume to the United States was approximately 6.11 million units.

Recently, due to the expansion of export volume, Pulmuone has invested 80 billion won to expand the production base of the fresh noodle factory in Eumseong. By 2023, the current single-building fresh noodle factory will be expanded to two buildings, increasing production capacity up to five times the current level. The new factory will be equipped with state-of-the-art noodle facilities to produce noodles of the highest quality, while the existing factory will be converted into a facility for manufacturing sauces used in fresh noodles.

Shinsegae Food Eumseong Factory Olban Tteokgalbi HMR Production Line

CJ Foodville produces bread and cakes in a 53,491㎡ factory. Recently, production of restaurant ready meals (RMR) for the dining brand Season’s Table has also started here. Shinsegae Food entered the food manufacturing business by completing a 56,439㎡ Eumseong factory in 2015. They manufacture and supply fresh foods such as sandwiches and gimbap here. Last year, the volume of home meal replacement (HMR) products manufactured here reached 24,179 tons.

In addition, SPC B.R. Korea, comprehensive caf? solution company Heungkuk F&B, and Hyein Food, which operates the Nene Chicken brand, are also located in the Eumseong industrial complex.

Dongwon Home Food has signed an investment agreement worth 32 billion won with Chungbuk Province and Eumseong-gun to build a new logistics center in the Eumseong distribution complex. The site area is about 26,000㎡, and it is scheduled to be completed and fully operational in the second half of this year. Dongwon Home Food plans to use the Eumseong logistics center as a key logistics hub for food ingredient distribution, seasoning food manufacturing (Samjo Celtec), and food service (group catering) sectors.

The food industry unanimously agrees that Eumseong’s location at the center of both the metropolitan area and provinces is its greatest advantage as a production and logistics facility hub. It is the most convenient area for sourcing and transporting regional ingredients and distributing finished products. A Dongwon Home Food official stated, "It is very close to major logistics centers and factories located in Jincheon, Asan, and Icheon, so we expect synergy effects."

It is also relatively free from labor shortages. Eumseong-gun is continuously expanding industrial complexes to revitalize the local economy. Besides the 12 industrial complexes excluding agricultural and industrial complexes, there are seven more industrial complexes either unsold or under construction. Many factory workers commute to Eumseong from nearby areas. At the county level, to alleviate labor shortages for companies, support is provided for design and construction costs of new or expanded dormitories for small and medium-sized enterprises within the jurisdiction.

Government support is also expected to be further strengthened. The county promotes and supports distribution and export for companies located within the complexes, and the government is promoting an urban regeneration New Deal project targeting Eumseong-gun, which includes industrial complexes and public rental housing (Happy Housing) projects to encourage population inflow of factory workers.