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3Rd International Food Cluster Forum

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3Rd International Food Cluster Forum KOREA NATIONAL FOOD CLUSTER No.4 · June /July · 2013 3rd INTERNATIONAL Food Cluster Forum COVER STORY Climate Change & Food Industry INDUSTRY LEADER Dongwon F&B http:// eng.foodpolis.kr 1 FOODPOLIS No.4 2013 FOODPOLIS CONTENTS 02 GREETINGS Greeting Message from Minister 03 News Track Latest News and Statistics 11 Project Monitor 3rd International FOOD Forum 11 19 Policy Talk Agricultural Product Distribution System 25 Cover Story Climate Change & the Food Industry 37 Regulatory Watch Measures to Build a Creative Economy 43 51 55 43 International Biz SunOpta FOODPOLIS Publisher 51 Industry Leader FOODPOLIS (KOREA NATIONAL FOOD CLUSTER) Dongwon F&B TaeyangB/D 4F 40-9, Jungang-dong, Gwacheon-si, Gyeonggi-do, Korea 427-806 Tel. +82-1688-8782 / http://eng.foodpolis.kr 55 Hansik Popular Korean Summer Food Design & Printing Agency A1 LAB Tel. +82 2 336 4089 | www.all-1.com Director: Kim Boil Chief Editor: Ram Garikipati Manager: Yoo Han-seok Sr. Designer: Jang Day-one Designer: Kim Jae-jung Photographer: Lee Byoung-sam Copyright © 2013 FOODPOLIS 1 EDITORIAL DEAR FRIENDS, We are making very good progress with our ambitious project to develop Asia’s first food cluster in Asia that will start operations in 2015. On May 15th, we organized the 3rd International Food Cluster Forum, which was an excellent platform to exchange ideas about the cluster and meet potential investors. I am happy to note that many foreign food companies and organizations are showing a keen interest in FOODPOLIS. The cluster, which plans to be the home of 160 food companies and ten R&D centers, is ever more relevant today as food quality and safety are priority to satisfy the increasing demand and regain the consumer confidence. More than a business platform, FOODPOLIS will be a place where global experts in food can meet to discuss research and develop solutions for the world's most complex issues. FOODPOLIS will be a knowledge-based center, with owned intellectual property focused on how to best address global food needs. Especially, with Asia-Pacific holding a significant market share in the global food market, the R&D centers in the cluster will constantly be looking ahead for new demands, trends and global issues. Its holistic approach will contribute to help solve the world's most complex issues of the food sector: from the development of food, processing and manufacturing of products to R&D of new technologies. Korea is certainly appropriate as the key location for companies to watch Asian market and fulfill its mission to feed the billions of people in Asia. FOODPOLIS will play a pivotal role to accomplish this. LEE Dong Phil Minister of Agriculture, Food & Rural Affairs 2 FOODPOLIS No.4 2013 plan called the ‘Government 3.0’ vision, which allows wider 2013 Economic Growth public access to government data. This initiative refers to the government reform drive to boost transparency, information Projection at 2.7% sharing, communication, and cooperation in overall state af- fairs management. Korea revised up its economic growth forecast for 2013 from Under the announced plan, public access will be broad- 2.3% to 2.7% to reflect the impact of extra budget and the ened to administrative data collected by all government or- central bank’s interest rate cut. The government predicted ganizations, including central and regional governments, the economy is expected to see recover moderately in the state-run committees, and state-invested institutions, starting second half (H2) of this year, and grow at an annual rate of 4% next year. This vision will apply to all forms of administrative next year. information in all stages of the policy-making process from The number of the employed is forecast to rise from preparation to implementation. So far, public access was al- 250,000 to 300,000 while current account surplus is estimated lowed to only 0.3% of the total administrative data and only to reach $38 billion, said the government. lists of documents were available unless an applicant submits The government said it will execute the budget secured disclosure requests. from compilation of supplementary budget until the third Under the initiative, the government will extend the scope quarter (Q3) and expand its investment into public institu- of public data disclosure to 6,150 items by 2017 from the exist- tions from 52.9 trillion won to 53.4 trillion won including So- ing 2,260 items. Public organizations will also raise the disclo- cial Overhead Cost (SOC). sure scale of the predicted number of 15,700 source data items The BOK will be flexible in managing monetary and cred- to 40% by 2017 from the current level of 14%. it policies. It also decided to adjust the scope and ceiling re- To boost accuracy of information, the government will garding soft loans extended to small and mid-size enterprises upgrade the quality of administrative data and create an in- in an elastic manner and ram up efforts to stabilize the for- tegrated data provision channel online (data.go.kr) in order eign exchange market if the market grows volatile. to enhance public access. Govt. to Reduce Tax Deductions, Expand Tax Credits The government plans to overhaul the code of tax deduc- tions, the so-called “13th monthly salary”. It will scale back tax deductions while expanding tax credits. Regarding credit card spending, which is entitled to tax deductions, deductible limit is likely to decline 5% points. At present, if credit card spending exceeds 25% of annual salary, 15% of the cred- it card payment is subject to tax deductions. However, from next year, only 10% will be subject to tax deductions. Currently, one million won of tax deductions have been offered for taxpayer, his or her spouse and dependents. How- ever, the government plans to move toward the new tax credit scheme, which gives a certain amount of tax refunds, according to the number of people and amount of income. Under the new scheme, the amount of tax cut benefits avail- able to low and high-income earners will be similar regard- ‘Government 3.0’ to Widen less of the number of dependents. Transparency In addition, low-income earners with 400 billion won or below income will be offered 500,000-won financial support The Korean government will broaden the disclosure of ad- per one child with the introduction of child tax credit (CTC), ministrative information except in cases of national security a scheme that President Park Geun-hye promised. This means or personal privacy starting in 2014. President Park Geun-hye low-income bracket is entitled to greater tax benefits com- and heads of government organizations announced a basic pared to high-income bracket. 3 NEWS TRACK situation, 79.3 trillion won, or 59%, to promote employment Sweeping Deregulation to and welfare, 6.7 trillion won, or 5%, to expand opportuni- ties for cultural activities and 17.6 trillion won, or 13%, to Bolster Economy strengthen the country’s defense and establish the founda- tion for peaceful unification. President Park Geun-hye said that the country “needs to pro- The government will also inject 17 trillion won to com- mote investment with a sweeping deregulation that actually plete National Happiness Pension tp be paid to the elderly (up produces an effect on the ground.” to 200,000 won a month) and 9.4 trillion won to construct “I have seen too many corporations troubled by incon- houses and 1.4 trillion won to double the monthly pay for sistent regulations. The economy is spurred by upbeat sen- enlisted men. timents, so we need to strongly support companies that are To tackle the low birth rate problems, the government willing to make bold investments in these difficult times.” will provide full support during the course of study at univer- Moreover, “easing regulations is the most cost-effective poli- sity for a student born a third child. cy to encourage investment in corporations. Unnecessary reg- ulations need to be repaired to stimulate economic growth,” she said. She emphasized that Korean companies should not be short-sighted and target only the domestic market. “I would like to make sure Korean companies that target the global market are no longer disadvantaged and hampered in the home market.” Park said her economic democratization drive is not about suppressing companies and is designed to create an environment of fair competition where hard-working eco- nomic players can take their fair share and realize their dream. Her remarks were made at a meeting with senior sec- retaries and officials from related government agencies. Plans to Create 930,000 Part-time Jobs by 2017 The government said it would create 930,000 decent part- time jobs by 2017 as part of an effort to meet its employment target of 70%. To this end, the government has decided to push for the hiring of part-time mid-level civil servants and public school teachers for the first time in 2014, while diversifying employ- ment patterns and giving women, adolescents and the elder- ly more chances to work. To encourage the private sector to join the initiative, the government will provide companies that create quality part- time jobs with tax benefits, along with other administrative incentives. Korea to Raise $120 bn to It is one of the key measures under the government’s comprehensive policy roadmap to raise the employment rate Enforce Major Policy Agendas to 70%. Under the roadmap, the government will increase the current 1.49 million to 2.42 million jobs by 2017. The The government has unveiled a set of detailed financing government plans to provide a legal ground to allow part- plans to secure necessary money to enforce its major policy time positions to be applied to government officials (seventh agendas over the next five years.
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