Suncheon City Enriches Economy with Three Oasis Springs

Oasis in Agricultural Bio Sector, Namhaean Region Fermented Food Industry Support Center
Oasis of New Material Parts Industry, Magnesium Material Parts Industry Cluster
Oasis of Youth Startups, Honam's Largest Startup Incubation Center
Growing in

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Suncheon has three oases.

They are the Namhaean Region Fermented Food Industry Support Center based on agriculture, the Magnesium Material Parts Industry Cluster based on new industries, and the largest startup incubation center in Honam based on youth entrepreneurship.

Suncheon City's '3E Project,' which has been a key focus during the 7th elected administration, is a policy that integrates Education, Ecology, and Economy.

It is a sustainable urban development strategy that revitalizes the local economy by leveraging Suncheon’s excellent educational environment and ecological strengths.

Among these, to create three oases representing the economy, Suncheon City is drawing water from underground aquifers.

▶ Oasis in Agricultural Bio Sector ? Namhaean Region Fermented Food Industry Support Center

The Namhaean Region Fermented Food Industry Support Center (hereafter, Support Center) will be completed in March 2022 in Seungju-eup, Suncheon City, with a total floor area of 2,915㎡.

It will be responsible for the production, research, and corporate support of fermented foods. The city plans to contribute to creating added value in agriculture and increasing farm income based on the Support Center.

Fermentation is a traditional biotechnology in Korea. Through fermentation, taste, nutrition, health, and immunity are enhanced.

Globally, interest in health and food has increased due to COVID-19, leading to an increase in exports of Korean fermented foods.

The domestic and international market size of the fermented food industry has been steadily growing at an average annual rate of 11% since 2013.

It is expected to grow by 9% until 2022. In particular, the fermented beverage market grew by 20.8% as of 2018.

Suncheon City has established a mid- to long-term development strategy to make the Namhaean region a mecca of fermented foods in line with the global trend of health and well-being.

The first phase (2020?2021) involves establishing a corporation to stabilize research and development at the Support Center and support enterprises.

To this end, an ordinance will be enacted and the corporation established by October next year.

The second phase (2022?2024) plans to strengthen product development and startup incubation and designate the Seungju-eup area as a regional specialized development zone.

The main products will be fermented beverages, teas, and fermented vinegars, differentiated from Sunchang’s sauces, Iksan’s sauces, and Gwangju’s kimchi.

Currently developed prototypes include kombucha tea, infusion tea, water jelly, and jelly sticks. Kombucha is a fermented beverage made by adding bacteria and yeast to black or green tea, with a sweet and sour taste.

It helps with gut and liver health, diabetes prevention, and dieting.

Kombucha is expected to grow annually by 38.4% in the U.S. and by 300% domestically over the next five years.

The third phase (2025?2027) will focus on creating a fermentation healing complex and fostering export companies.

Additionally, linked with the development of the natural bio-industrial complex in Oeseo-myeon, the city plans to specialize in attracting companies in the bio-industry sector.

▶ Oasis in New Material Parts Industry ? Magnesium Material Parts Industry Cluster

On the 10th, Suncheon City held a launch ceremony for the International Magnesium Commercialization Research Center (hereafter, Research Center) preparation team and signed agreements with Germany’s Volkswagen, China’s magnesium research institution Chongqing University CCMG, and 13 domestic companies. The Research Center will open in August next year in Haeryong Industrial Complex.

Magnesium is the lightest among lightweight metals (its specific gravity is 2/3 that of aluminum and 1/5 that of steel) and is used in automobiles, IT products, and medical aids.

Recently, its applications have expanded to spacecraft, aircraft, bicycles, cameras, frying pans, and LED lighting heat sinks.

According to a McKinsey report, magnesium consumption is expected to increase from 0.6% in 2015 to 5% by 2030.

However, about 85% of the world’s magnesium raw material supply comes from China, and due to difficulties in casting and post-processing, domestic production is limited. Also, demand is low, making commercialization challenging.

To address this, Suncheon City plans to collaborate with Jeonnam Technopark, Korea Institute of Materials Science, Korea Institute of Industrial Technology, and Pine Tree Force Magnesium Co., Ltd. (PPM), which acquired the magnesium sheet factory in Haeryong Industrial Complex from POSCO, to develop commercialization technologies and discover demand sources for magnesium.

Magnesium technology research involves the U.S. Big Three automakers including General Motors, Germany’s Volkswagen, Helmholtz Research Center, and Seoul National University’s Magnesium Technology Innovation Center.

North Korea has abundant magnesite deposits.

Suncheon City expects that if inter-Korean economic cooperation is activated in the future, the supply of raw materials from North Korea and South Korea’s material and parts technology will combine.

If successful, it is anticipated to dominate the global magnesium market.

Suncheon City’s plan is to create a magnesium material and parts cluster centered on the magnesium sheet factory in Haeryong Industrial Complex.

First, the first phase (2020?2023) will promote a national project supporting magnesium commercialization and operate the International Magnesium Commercialization Support Center to support this.

The second phase (2021?2024) will establish a metal material and parts research institute to strengthen R&D capabilities for metal material parts.

The third phase (2022?2028) will develop commercialization technologies to create an ultra-lightweight material and parts cluster.

▶ Oasis for Youth Entrepreneurship ? Honam Region’s Largest Suncheon-style Startup Incubation Center

Suncheon City plans to build a startup incubation center so that young people can succeed with just an idea and attract the Han-Korea Startup Innovation Center (hereafter “Startup Innovation Center”) of the Zhongguancun Social Organization Federation, known as China’s Silicon Valley.

The driving forces behind China’s startup boom and growth are the fostering policies and support for advanced information technology (IT) centered on Zhongguancun, activation of youth entrepreneurship, and infrastructure supporting startup ideas.

Suncheon City visited Zhongguancun in October 2018 to incorporate its experience and know-how and has been preparing to create a startup ecosystem through continuous exchanges with the Social Organization Federation managing Zhongguancun.

First, in November last year, a startup idea competition with a grand prize of 100 million KRW was held.

Since May, the startup support group ‘Changup Yeondang (創業連堂)’ has been playing a startup hub role by supporting commercialization of the competition winners’ projects, recruiting startup companies, and networking with 27 local organizations including Suncheon National University’s startup support group.

Second, Suncheon City will open the Startup Innovation Center, which acts as Zhongguancun’s Korean branch.

Through this center, Suncheon plans to exchange Zhongguancun’s startup systems and strategies and serve as a foothold to help startups enter the Chinese market.

The Startup Innovation Center will move into the Youth Center at Yeongdong 1-beonji, Suncheon City, in the first half of next year. Currently, discussions are underway to hold the preliminary round of the global startup conference hosted by the Beijing government in Suncheon.

Third, a base facility will be established to serve as an incubator linking ideas and resources.

For this, a startup incubation center with a total floor area of 3,000㎡ will be built by 2022 within the station area urban regeneration zone.

Startup planners, who are professionals responsible for mentoring and consulting, will be stationed here.

Companies residing in the incubation center will receive support necessary for startups, including funding, accounting, personnel recruitment and management, prototype production, and legal services.

▶ Characteristics of Suncheon-style Oases

The first characteristic of the oases Suncheon City is creating is that they are region-led and region-based innovative industries. Until now, innovation project promotion systems have been government-led.

The magnesium new material parts industry and fermented food industry are systems in which Suncheon City directly invests, combining the region’s main industries with the characteristics of a mixed urban-rural city and urban regeneration.

The second is that R&D investment creates a structure that leads to startups and production.

Each center provides one-stop services from research and development to startup incubation and product market development.

The third is a public-private governance system.

Industrialization strategies at the local government level inevitably lack technology, manpower, and resources.

To overcome this, Suncheon City has established a cooperative system with central government financial support, research institutes providing technology in R&D fields, startup experts, and participating companies, involving them from the early stages of the project.

The fourth is that it is a mid- to long-term challenge rather than a short-term achievement.

Suncheon City has established residential conditions to attract excellent human resources.

In a satisfaction survey conducted in the first half of this year targeting newcomers from outside the region, 90.3% responded with satisfaction above average, showing that Suncheon’s urban infrastructure such as housing, transportation, safety, and culture is a driving force for population inflow.

Especially after COVID-19, with the increase in remote work and social distancing, there is a tendency to prefer small and medium-sized cities that blend with nature and have less close contact rather than densely populated cities.

Suncheon City can be considered a city type suitable for the post-COVID-19 era.

Mayor Heo Seok of Suncheon said, “Seeds are already flying and people are flocking to the oases that Suncheon City is creating.” He added, “The oases that will create Suncheon’s future food sources will lead to job creation and population inflow, bringing sustainable growth to the city.”

This content was produced with the assistance of AI translation services.