Busanjinhae Free Economic Zone Authority Launches Coffee Industry Business Model Working Group

First Step Toward Realizing the Long-Awaited Coffee Industry in the Free Trade Zone
Discussing Institutional Improvements and Cooperation Measures for Coffee Industry Implementation

The Busanjinhae Free Economic Zone Authority (Director Park Sungho) held a kickoff meeting for the "Free Trade Zone Coffee Industry Business Model Working Group" on November 6 at the conference room of the Korea Maritime Institute.

This kickoff meeting marked the first step toward the full-scale implementation of the coffee industry within the free trade zone, which had not progressed for a long time.

On the 6th, at the 'Free Trade Zone Coffee Industry Business Model Working Group' held at the Korea Maritime Institute, Park Sung-ho, Director of the Busanjin Free Trade Zone Authority (third from the left in the front row), is taking a commemorative photo with the participants. Provided by Busanjin Free Trade Zone Authority

The working group aims to build an integrated industrial ecosystem that connects production, processing, logistics, and export of the coffee industry within the free trade zone, with participation from related organizations such as the Free Economic Zone Authority, Korea Maritime Institute, Busan Port Authority, and Busan Main Customs. The implementation of the coffee industry in the free trade zone, which had been delayed due to regulatory constraints, is now entering a new phase through a practical cooperation system.

▲ Industrial, logistics, and customs agencies gather in one place... Launch of an implementation-focused working group

This working group goes beyond simple discussion, operating as an implementation-focused body with the participation of specialized agencies in policy, logistics, and customs. Together, they will jointly address legal and institutional improvement tasks such as the entry of coffee manufacturing companies into the free trade zone, the consignment processing system, and product taxation standards, in order to establish an institutional foundation that enables practical business activities.

▲ Building an export-oriented ecosystem based on a smart cluster

The working group will focus on building a business model that covers the entire coffee industry value chain as its core agenda. In particular, key directions include establishing a smart coffee cluster that integrates manufacturing and logistics, designing company-specific solutions based on step-by-step demand analysis, and creating an export-oriented industrial ecosystem utilizing the free trade zone.

In this process, the Korea Maritime Institute (KMI) will serve as the practical lead agency for business model development within the working group, and will work to concretize an industrial structure model that integrates production, processing, logistics, and export within the coffee industry.

Additionally, plans will be presented to strengthen competitiveness as an international coffee logistics hub by combining port and logistics data with the functions of the free trade zone.

Regarding this, KMI President Cho Junghui stated, "This working group is not just a forum for discussion, but a practical first step toward developing a high value-added industrial ecosystem that combines processing, logistics, and distribution," adding, "The Korea Maritime Institute will actively support Busan and Gyeongnam in establishing themselves as the industrial platform leading the Asian coffee supply chain through strategic planning and research on the coffee industry business model."

In addition, to ensure the effective implementation of the business model, the working group is conducting practical discussions on institutional improvements and the establishment of operational systems together with related agencies such as the Korea Customs Service (Busan Main Customs) and the Busan Port Authority. In particular, the group is focusing on reviewing solutions to institutional obstacles such as customs procedures and entry standards for integrated manufacturing and logistics operations within the free trade zone, and discussed the administrative and operational foundations necessary for companies to actually conduct business.

▲ After long discussions, the path to implementation opens

Director Park Sungho stated, "With the launch of this working group, the coffee industry, which had only been discussed due to institutional limitations, has now entered a new phase of cooperation focused on implementation," adding, "The Free Economic Zone Authority will spare no administrative and institutional support to help the coffee industry based in the free trade zone leap forward as an integrated industrial model connecting production, processing, logistics, and export."

Going forward, the Free Economic Zone Authority plans to expand participation in the working group to include private sector entities such as coffee-related companies, research institutes, and financial institutions, and will actively encourage the involvement of related organizations such as Gyeongnam Province, Busan City, Technopark, and the Busan Branch of the Bank of Korea.