S. Korea to build up food sector into 150 tln won industry by 2012

(ATTN: UPDATES with more details in paras 5-7, 10-12)
By Lee Joon-seung
SEOUL, Nov. 13 (Yonhap) -- South Korea aims to build up the country's food
production sector into a 150 trillion won (US$107 billion) industry by 2012
through enhanced quality control and exports, a senior policymaker said Thursday.

Food and Agriculture Minister Chang Tae-pyong said in a news conference that the
master plan calls for 7 percent annual growth in sales until the target year,
increasing market size by 50 trillion won from the 100 trillion won tallied for
2006.
He said that in order to fuel such growth, the government will allocate 5
trillion won over the next five years, which can help create 150,000 more jobs
and expand exports from US$3.8 billion in 2007 to $10.0 billion by the end of
2012 for an average annual growth of 22 percent.
The government support will be made up of 1.2 trillion won in subsidies and 3.8
trillion won in loans.
"Food industry growth is vital for agriculture since processing farm goods can
add value to produce, which effectively generates greater overall demand," the
official said, adding that gains in agriculture and the food industry have 3-4
times the impact on economic growth than ordinary manufacturing.
Chang added that efforts to turn food processing and related services into a
first rate industry will involve taking steps to produce safe, top quality foods
and ingredients that are trusted by consumers, helping build the sector into a
globally oriented industry by enhancing the competitiveness of the country's food
supply chain.
Chang pointed out that while many inside the country underestimate the food
industry, the overall global market stands at US$4 trillion per year and holds
great potential for growing South Korean companies.
"The industry as a whole is larger than both the global auto and information
technology industry and can generate levels of profit exceeding those of
semiconductor production," the minister claimed.
The policymaker said that to help make high quality goods, the government will
push for increased research and development outlays from 0.34 percent of sales,
or 340 billion won in 2006, to 2 percent in 2017, with emphasis placed on greater
cooperation between private and state-run laboratories.
He added that while unnecessary red tape will be abolished, Seoul will push for
broader application of Hazard Analysis and Critical Control Points systems and
sound agricultural practices designed to prevent harmful materials from entering
the production process.
The minister stressed that the success of the plan will rest on winning the trust
of both local and foreign consumers who are demanding higher quality goods.
"If the plan is followed through, the food industry could help the country's 42
trillion won agricultural sector grow by a further 10.2 trillion won," Chang
said.
yonngong@yna.co.kr
(END)