By Kim Yoo-chul
LG Group said Wednesday that it has agreed with the Saemangeum Development and Investment Agency (SDIA) to build a "smart biopark" in the industrial complex.
"In order to address growing worries over the scarcity of food production as the population grows, LG will build the biopark, a smart farming plant in the Saemangeum complex in North Jeolla Province," LG CNS said in a statement.
LG Group will invest 380 billion won into the agricultural complex, which will become operational by 2018 at the earliest and is expected to be 230,000 square meters when complete.
In return for the investment, LG was given some tax and administrative incentives.
For the project, LG Group affiliates including LG CNS, LG Chem, LG Hausys, LG Electronics and LG Innotek teamed up, with LG CNS taking the key role.
The statement said the plant will have a research center and a testing site for new agricultural products. The site will be run by a non-LG agricultural company.
LG stressed that its plan to advance the agricultural sector isn't intended to expanding its share in the local market.
"The products from the site will be exported across Asia via leading distribution channels. Saemangeum is the right place for exports as the complex has solid transportation infrastructure, helping LG cut costs in logistics," said the statement.
"LG has no plans to hurt common interests of farmers, as the group wants to improve competitiveness in the agricultural industry and help increase farmer income by diversifying business models."
The agricultural industry is facing several challenges such as the limited availability of arable land, global climate change, the growing scarcity of water, restrictions on using fertilizer, the price and availability of energy and the impact of urbanization on rural labor supply, said market research firms and LG.
"Therefore, developing smart agriculture with Internet of Things is a must," said the statement, mentioning moves by China, New Zealand and Australia to invest more in smart farming technologies and relevant projects.
In the plant, LG CNS will supply various controls, while LG Chem and LG Hausys will supply materials such as aluminum frames. LG Innotek will supply LED lamps and sensors, while LG Electronics will install coolers, controllers and gas pumps.
"Small farmers need help to approach and understand the potential of the IoT market by installing smart technology to increase production sustainability and competitiveness," said Alicia Asin, CEO of market research firm Libelium and Beecham Research.
LG Group said Wednesday that it has agreed with the Saemangeum Development and Investment Agency (SDIA) to build a "smart biopark" in the industrial complex.
"In order to address growing worries over the scarcity of food production as the population grows, LG will build the biopark, a smart farming plant in the Saemangeum complex in North Jeolla Province," LG CNS said in a statement.
LG Group will invest 380 billion won into the agricultural complex, which will become operational by 2018 at the earliest and is expected to be 230,000 square meters when complete.
In return for the investment, LG was given some tax and administrative incentives.
For the project, LG Group affiliates including LG CNS, LG Chem, LG Hausys, LG Electronics and LG Innotek teamed up, with LG CNS taking the key role.
The statement said the plant will have a research center and a testing site for new agricultural products. The site will be run by a non-LG agricultural company.
LG stressed that its plan to advance the agricultural sector isn't intended to expanding its share in the local market.
"The products from the site will be exported across Asia via leading distribution channels. Saemangeum is the right place for exports as the complex has solid transportation infrastructure, helping LG cut costs in logistics," said the statement.
"LG has no plans to hurt common interests of farmers, as the group wants to improve competitiveness in the agricultural industry and help increase farmer income by diversifying business models."
The agricultural industry is facing several challenges such as the limited availability of arable land, global climate change, the growing scarcity of water, restrictions on using fertilizer, the price and availability of energy and the impact of urbanization on rural labor supply, said market research firms and LG.
"Therefore, developing smart agriculture with Internet of Things is a must," said the statement, mentioning moves by China, New Zealand and Australia to invest more in smart farming technologies and relevant projects.
In the plant, LG CNS will supply various controls, while LG Chem and LG Hausys will supply materials such as aluminum frames. LG Innotek will supply LED lamps and sensors, while LG Electronics will install coolers, controllers and gas pumps.
"Small farmers need help to approach and understand the potential of the IoT market by installing smart technology to increase production sustainability and competitiveness," said Alicia Asin, CEO of market research firm Libelium and Beecham Research.
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