CJ joins campaign to create food cluster

Food firm set to invest W20 bil. to build research facilities

By Lee Hyo-sik

Korea’s efforts to create a food industry cluster in North Jeolla Province by 2015 have received a much-needed boost from CJ, the country’s largest food company. It has pledged to invest over 20 billion won ($18 million) to build the state-of-the-art production and research facilities.

The Ministry for Food, Agriculture, Forestry and Fisheries said Tuesday that it signed a memorandum of understanding (MOU) with CJ CheilJedang, adding the planned investment will encourage more food firms at home and abroad to establish a foothold in the Korea National Food Cluster.

The government has and will invest a total of 553.5 billion won to create the food industry complex named Foodopolis on 3.58 square kilometers in Iksan.

By 2015, over 150 local and international food companies and 10 research centers are expected to produce a wide range of food products, as well as conduct research and development activities. The cluster is also designed to help boost the nation’s food exports to Japan, China and other Asian nations.

Those operating in Foodpolis will receive tax breaks and other administrative benefits.

“We have decided to construct the latest food production and research facilities on the 66,000 square meters of land inside the food cluster. We haven’t been able to finalize our investment amount. But it will be around 20 billion won. The figure could become even larger,’’ said a CJ CheilJedang executive who declined to be named.

The executive said the firm will nurture its operations in the cluster as an export base targeting China, adding a growing number of increasingly wealthy Chinese consumers will consume high-quality food items produced here.

The ministry welcomed CJ’s decision to invest in Foodpolis, stressing it will extend full administrative support to Korea’s biggest food company, which earned 6.5 trillion won in sales last year and employs over 5,700 workers.

“We will do everything we can to support CJ in building and operating production and research facilities,’’ ministry official Sung Byung-hwa said. “The MOU with CJ will clearly send a strong signal to other food companies here and abroad. Among others, Dongwon F&B has expressed interest in the food cluster.’’

The ministry has so far signed MOUs with 54 companies and research centers, including 14 from overseas.

“We will continue to promote the food cluster at home and abroad. In particular, we will focus more on investor relations activities in 160 foreign countries to attract global food firms to establish their operations here,’’ Sung said. “When the project is completed as planned, it will churn out food products worth 4 trillion won and generate 22,000 new jobs.’’