[K-MICE Era] "To Leap as a MICE Powerhouse, We Must Foster Unique Native Events"

Interview with Jeong Chang-wook, Head of MICE Division at Korea Tourism Organization

The tourism industry is the only service sector designated as a major national policy area and is one of South Korea's top five export industries, alongside semiconductors, automobiles, petroleum products, and automobile parts, serving as a key driver of economic development. Among these, the MICE industry (Meetings, Incentives, Conventions, and Exhibitions) is gaining attention as a future industry that, through its convergent characteristics, generates diverse economic ripple effects such as mid- to long-term consumption and employment market expansion, as well as enhancement of socio-cultural benefits.

[Image source=Yonhap News]

The Ministry of Culture, Sports and Tourism and the Korea Tourism Organization recently held the 'MICE Global Leap Declaration Ceremony' and announced three major goals to usher in the 'K-MICE' era by 2028: ▲hosting 1,400 international conferences (world's number one) ▲attracting 1.3 million foreign participants ▲earning 3 billion dollars in foreign currency revenue.

As countries around the world fiercely compete to attract MICE events in the global market, we met with Jung Chang-wook, head of the MICE Division at the Korea Tourism Organization, to hear about the vision and strengths of K-MICE in responding to this competition. The following is a Q&A with Director Jung.

- The target number of international conference participants this year is 250,000, which is an increase of 100,000 compared to the previous year.

▲ Before COVID-19 in 2019, the number was 300,000. Since corporate meetings and incentive travel groups mostly involve gatherings, demand was completely halted due to non-face-to-face restrictions. As travel gradually resumes and even previously avoided incentives recover, we have set a target of 90% of the pre-COVID-19 figure and are working with related industries to attract events.

- The budget for corporate meetings and incentives support this year is 3.17 billion KRW, which is reduced compared to last year. What is the reason for this cut?

▲ During the COVID-19 period, the budget execution rate was low because many funds were not spent, resulting in a lot of unused funds. When unused funds continue, the government, which allocates the budget, has no choice but to adjust it, leading to budget cuts. We now need to maximize this year's performance to secure data that can justify increasing the budget again. Also, we plan to prove that there is strong demand in the global market, collect such evidence, gather industry opinions, and reflect the outlook for attracting incentive groups in next year’s budget.

- In the past, corporate meetings or incentive groups were associated with large-scale events, but recently, there has been an increase in attracting groups of 10 to 50 people.

▲ Even in the past, depending on each company's circumstances, some companies held smaller events because moving large groups caused difficulties such as securing airline seats. After experiencing COVID-19, the trend of individualized travel has also appeared in incentive groups in the form of small groups. Although small on an individual basis, when accumulated annually, several thousand people participate in such groups, and the proportion of small and medium-sized groups is gradually increasing to account for about 20% of the total.

Jung Chang-wook, Head of MICE Division, Korea Tourism Organization

- It seems difficult to apply rapidly changing travel trends to corporate meetings and incentive groups.

▲ Since these are corporate groups rather than general tourists, they can engage in team-building activities unique to themselves. We have also made efforts to select K-pop, K-beauty, K-culture, and other cultural experiences, which are gaining interest in Korea, as designated tourism sites. Usually, group tours involve similar dining places and predictable performances. While these may be enjoyable for first-timers, we aim to provide cultural experiences by sourcing and connecting companies that offer experiences such as food trucks or coffee trucks seen in movies or dramas, developing various programs.

- What is Korea’s status in the global MICE industry?

▲ Rankings vary depending on the institution and statistics, but overall, Korea is always a top priority destination for incentive groups, especially from Asia and the Middle East. Korea is a popular destination comparable to Japan and Singapore, and as K-culture’s popularity expands globally, Korea is now considered even in Europe. Korea ranked first in the world in international conference hosting in 2016 according to the Union of International Associations (UIA), and it remains consistently mentioned among the top 10 global destinations, maintaining a high number of hosted events.

- There are criticisms that Korea lacks unique MICE characteristics. What are your thoughts on this?

▲ Korea has hosted many international events, including the G20 Summit, raising its national status. Now, we are supporting the growth of 'K-Conventions' to develop Korea as a global convention hub by creating and supporting such events. The Korean version of the Davos Forum mentioned at the recent 'MICE Global Leap Declaration Ceremony' is an example. We need to globalize indigenous events held in Korea first. For instance, the Seoul Cafe Show held annually at COEX is a very large event but is not well promoted. With better support, such events can be grown globally. We must first nurture these homegrown events.