K-Food+, Growing as a Key Export Strategy Industry for Teens... "Targeting $23 Billion in Exports by 2027"

Ministry of Agriculture, Food and Rural Affairs, K-Food+ Export Innovation Strategy

The government has decided to focus on fostering 'K-Food+,' which encompasses K-Food, intelligent farms (smart farms), agricultural machinery, pet food, and veterinary pharmaceuticals, aiming to develop it into one of the top 10 strategic export industries. The goal is to achieve $23 billion in exports by 2027, with plans to strengthen export organization capabilities, establish specialized logistics infrastructure for fresh agricultural products, and introduce a rapid customs clearance system for fresh produce.

The Ministry of Agriculture, Food and Rural Affairs announced the 'K-Food+ Export Innovation Strategy' containing these details on the 20th.

As a result of promoting the export industrialization of agricultural food and related upstream and downstream industries last year, K-Food+ exports reached a record high of $12.14 billion. The government aims to increase K-Food+ exports to $13.5 billion and set a target of $23 billion by 2027. This plan was prepared based on improvement tasks discussed while operating the 'K-Food+ Export Expansion Headquarters' last year and feedback from the field.

'From Logistics Cost Support to Strengthening Export Organization Capabilities' Support System Reform

First, the Ministry of Agriculture, Food and Rural Affairs will work on improving the export structure and system. Until now, logistics costs were supported for exporters, but going forward, the focus will be on strengthening export organization capabilities such as quality control, joint marketing, and logistics efficiency to enable export organizations to develop self-sustainability and expertise. The existing logistics cost program will be converted into the 'Agricultural Food Export Voucher Program,' which allows export organizations and companies to select desired projects in a menu format, including joint facilities and long-term storage agents.

A specialized logistics system for fresh agricultural products covering all export stages from domestic to overseas sales points will also be established. Support for cold storage facilities, vehicles, and special packaging materials will be expanded near domestic sorting centers and ports/airports, where cold facilities are insufficient. The overseas cold chain currently supported in six countries including China and Vietnam will be expanded to 12 countries by 2027.

Support for CA (Controlled Atmosphere) containers, a freshness preservation technology through air environment control, will be expanded, and CA models suitable for the distribution structure of fresh agricultural products will be established. To reduce logistics costs, support for mobile CA containers will be expanded for strawberries and mushrooms, which require a shift from air to sea logistics, and fixed CA facilities (five units) will be installed in production areas for long-term storage products such as pears and grapes.

CA container under demonstration research by the Rural Development Administration.

A rapid customs clearance system at airports will be introduced for fresh agricultural product exports to simplify customs procedures such as security checks. The Ministry expects customs clearance time to be reduced from the current 3-6 hours to 1-2 hours with the introduction of the rapid clearance system. Additionally, joint forwarding, piloted last year with strawberries, will be expanded to pears, paprika, and others. According to the Ministry, joint forwarding, where an integrated export organization negotiates bulk freight rates with carriers for the entire export volume, resulted in a 21% reduction in freight costs for strawberries.

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Strategic export quarantine negotiations that can lead to export results will also be pursued. A public-private consultative body will be formed to discover promising negotiation items, and a 'Roadmap for Agricultural Food Export Quarantine Negotiations' will be prepared for use in bilateral management. Support for promotion and quality control will be expanded for newly resolved quarantine items such as heat-treated pork (EU) and citrus (New Zealand).

Support will also be provided to promote joint exports between large and small-to-medium enterprises and to activate investment in export companies. A collaboration model will be established for shared sales channels, joint marketing, and product development between large companies with overseas networks and infrastructure and small-to-medium enterprises seeking overseas expansion, with plans to promote win-win agreements. Additionally, a support system covering the entire export cycle will be established and supported through policy funds such as the Agricultural Food Export Fund (20 billion KRW) and the selection of 100 promising K-Food+ export companies for investment attraction, listing, and export support.

Smart farms will be promoted as hubs by establishing pilot greenhouses in promising export countries such as the Middle East and designating key support trade offices. For agricultural machinery, market diversification and new market development in Europe and Africa will be supported by strengthening export country licensing acquisition and marketing support. Veterinary pharmaceuticals will focus on establishing quality management standards (GMP) for export medical devices and support the discovery of new markets with high export potential. Pet food will focus on initial market development such as market research and channel development.

Song Mi-ryeong, Minister of Agriculture, Food and Rural Affairs, said, "We will seize the opportunity of the K-Food boom and the recovery of global trade volume to achieve this year's export target," adding, "In the mid to long term, we will concentrate policy capabilities so that K-Food+ can become a leading export industry in the global market, and strengthen public-private cooperation and inter-ministerial collaboration."