The Ministry of Agriculture, Food and Rural Affairs (Minister Chung Hwang-keun, MAFRA) announced the Food Service Industry Innovation Plus Measures (The 3rd (2022~2026) Basic Plan for Food Service Industry Promotion, the Plan) to become one of the leading countries in the global food service industry.
The Plan is an official plan established to set the basic direction of the food service industry promotion policies every five year, in accordance with the Food Service Industry Promotion Act. The Plan has been devised following commissioned research; gathering of opinions through discussions by people in the industry and academic experts on how to develop the food service industry; and consultations among relevant ministries.
The food service industry in Korea includes 800,000 businesses as of 2020 (13.3% of the total industry) with 140 trillion won of sales (2.1% of the total industry) while employing 1.92 million people (7.7% of the total employment). The food service industry has grown in size thanks to low entry barriers and continuous rise in demand from single-person and double-income households.
However, several challenges should be addressed as ▲ the majority are small businesses (84.6%), ▲ small businesses are less likely to survive (As of 2020, 20.1% survived for five years) as they repeatedly start up business without much preparation and fail quickly, and ▲ there is a lack of innovation including food tech research and development and commercialization.
The Plan has set "Leaping forward to become a leading country in the global food service industry" as a new vision. Over the coming five years, ▲ 10 unicorn food tech companies, ▲ more than 5 food service companies with the sales of more than one trillion won, and ▲ 5,000 overseas food service stores have been set as goals.
To this end, 4 strategies including ① Food service industry leaping towards innovation ② K-Food service
loved by the world ③ Food service industry which grows together with agriculture∙environment∙society and ④ Food service industry which grows inclusively will be implemented along with 12 major tasks.
The main content of this Plan is the following.
[Strategy ①] Food service industry leaping towards Innovation |
First, to address difficulties on the site such as manpower shortage and rising labor costs and to enhance productivity and added value, ▲ support for food tech research∙development in the food service industry will be further expanded; and ▲ early commercialization of products developed by food tech start-ups will be supported.
Second, ▲ smart food streets will be established by applying food technology such as cooking and serving robots and kiosks at well-known local food streets. ▲ Also, the adoption of food tech products will be promoted at stores which support Youth Start-up Incubating Project and Start-up Community Space Establishment Project.
Third, in order to promote commercialization of food tech and address manpower shortage, ▲ we will revise Intelligent Robots Development and Distribution Promotion Act and Road Traffic Act by 2023, together with the relevant ministries to enable delivery robots to walk on the sidewalk. ▲ Regulatory improvement will be promoted to allow foreigners with visiting employment status (H-2) to be employed in the food service industry as a whole from 2023. Currently, only some restaurants including Korean and foreign restaurants can employ those with H-2.
ovation
[Strategy ②] K-Food service loved by the world |
First, for Korean food service companies to go global, step-by-step customized support system will be established from pre-introduction to localization ▲ by running "Consultation Desk for Entry into Overseas Markets" in promising export destinations; ▲ by diversifying support items to meet the needs of different stages of entering the global market; and ▲ by providing detailed information (once a month) on food service markets of promising export destinations.
Second, to nurture global food service brands, ▲ global awareness on Korean food service brands will be enhanced by using K-content and overseas influencers, and ▲ working-level training course on entry into overseas markets will be provided for employees of food service companies to strengthen their capabilities to enter the overseas markets.
Third, to help Koreans and foreigners enjoy high-quality and diverse food service, ▲ service grading system will be implemented in a pilot manner starting from 2024 by devising restaurants’ service quality standards and performance systems. ▲ Also, the use of low-carbon agricultural and livestock products as food ingredients will be promoted while considering the adoption of certification system on food made of low-carbon agricultural and livestock ingredients.
[Strategy ③] Food service industry which grows together with agriculture∙environment∙society |
First, for coexistence with agriculture, direct transactions of ingredients between food service businesses and producers' associations will be stimulated through Korea Agro-Fisheries & Food Trade (eaT) system and online agri-food exchange (to be established in 2023); ▲ further usage of locally sourced ingredients will be encouraged in cooperation with food service businesses; and ▲ food service providers' use of local food will be promoted.
Second, to stimulate rural tourism and local food service, ▲ rural tourism business connecting rural local food and rural tourism will be further supported and promoted; ▲ rural local food will be sold as convenience food and experience programs will be provided; and ▲ activities such as talent donation through sisterhood relationship of food service companies and rural areas, disaster damage repair and volunteering will be promoted.
Third, to boost environment and society-friendly management, ▲ various good management examples will be explored∙promoted; ▲ criteria and operation method of Environmental∙Social∙Governance (ESG) assessment tailored to the food service industry will be devised; and the operation of ESG assessment in the food service industry will be supported from 2024.
[Strategy ④] Food service industry which grows inclusively |
First, to prepare for the epidemic resurgence, global supply chain crisis, etc., "Crisis Response Guide" for the
service industry will be drawn up and distributed; and ▲ food service management information will be provided to support the food service industry's crisis recovery, by exploring various good management cases and by using artificial intelligence.
Second, ▲ start-up training in theory and practice will be provided to those who wish to startup businesses; ▲ long-term survival of food service businesses will be encouraged by providing intensive consulting to those who are at the early stage of starting up businesses; and ▲ second chances will be provided to those who wish to close the businesses with relevant consulting, demolition of restaurants, debt settlement, legal advisory and training for re-starting up a business.
Third, to improve working environment of small food businesses and prevent accidents, ▲ advisory service on electricity∙gas facilities will be provided to prevent fire and accidents; and ▲ replacement and renovation of old kitchen facilities will be supported.
Director General Yang Joo-phil of MAFRA said, “ I expect the investment of 925.9 billion won over the coming five years will serve as an opportunity for the food service industry, which has been devastated by COVID-19 and global supply chain disruptions, to move forward as a future growth engine. We will strengthen communication and cooperation with restaurants, food tech related businesses, and relevant ministries. Also, we will come up with detailed implementation plans for each task and implement them as planned.”
Attachment: Summary of the Food Service Industry Innovation Plus Measures (The 3rd Basic Plan for Food Service Industry Promotion)
Divisions <General Management> |
Ministry of Agriculture, Food and Rural Affairs Food Service Promotion Division |
Director |
Moon Ji-in (044-201-2151) |
Deputy Director |
Kim Ji-hoon (044-201-2170) |
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<Food Tech Regulatory Improvement> |
Ministry of Trade, Industry and Energy Machinery, Robotics and Defense Division |
Director |
Kim Ho-cheol (044-203-4310) |
Senior Deputy Director |
Kim Do-yoon (044-203-4313) |
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Ministry of Food and Drug Safety Food Safety Policy Division |
Director |
Choi Dae-won (043-719-2010) |
|
Deputy Director |
Kim Hong-tae (043-719-2011) |
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<Foreign Workforce> |
Ministry of Employment and Labor Foreign Workforce Division |
Director |
Kim Moon-sil (044-202-7157) |
Deputy Director |
Lee Hyun-joo(044-202-7156) |
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Ministry of Justice Residence & Visa Division |
Director |
Lee Seung-hyun (02-2110-4055) |
|
Deputy Director |
Choi Joon-ho (02-2110-4065) |
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<Support for SMEs and Startups> |
Ministry of SMEs and Startups Policy Coordination Division |
Director |
Lee Soon-bae (044-204-7420) |
Deputy Director |
Park hyun (044-204-7425) |
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<Rural Local Food> |
Rural Development Administration Rural Resource Division |
Director |
Park Jeong-hwa (063-238-1010) |
Deputy Director |
Jeong Seong-ok (063-238-1015) |