KREI: "Green Bio Is a Future Growth Engine... Integrated System Linking Policy and Implementation Needed"

A Study on Growth and Industrialization Strategies for the Green Bio Industry
Challenges in Developing High Value-Added Products and Entering Overseas Markets
"Integrated Connection Needed Between Government Policy Design and Local Implementatio

A state-run research institute has suggested that, to maximize the growth potential of the domestic green bio industry, a comprehensive support system covering the entire industrial process—from raw material production through commercialization to export—must be established.

The Korea Rural Economic Institute (KREI) announced a report titled "A Study on Industrialization Strategies for the Growth of the Green Bio Industry: Focusing on Natural Products and Food Ingredients" on August 28.

The Asia Business Daily Database

This study, following last year's research on seeds and the microbiome sector, analyzed the current state of, and policy issues facing, the natural products and food ingredients industries. The study found that, although the domestic natural products and food ingredients industry is seeing rapid growth of functional raw materials and the health functional food market, the industry's competitiveness is limited due to underdeveloped raw material supply chains, insufficient quality standardization, inadequate functionality verification, and lack of a robust certification system.

In particular, the analysis showed that while companies extensively use domestic raw materials, they face challenges in sourcing and quality management of those materials, and also lack research and development as well as certification capabilities, which impedes the development of high value-added products and entry into overseas markets.

The research team, after analyzing cases in Japan and the European Union (EU), identified that functionality labeling systems, integrated certification frameworks, and support schemes connecting research and development with commercialization were key factors driving industry growth. In contrast, South Korea was found to have fragmented policies and support, as various ministries pursue individual initiatives, which limits the extent to which research results can be effectively commercialized.

Accordingly, the research team proposed establishing an all-stage industrial support system that links 'raw material production – ingredient development – product commercialization and market entry.' They emphasized the need for raw material standardization and traceability at the raw material phase; process reproducibility enhancement, functionality verification, and certification support at the ingredient phase; and market expansion for functional products, strengthening overseas certification and export support, and reinforcing market connectivity through the development of regional hubs and contract development infrastructures at the product phase.

Jongyeol Yoon, Research Fellow at KREI, stated, "The green bio natural products and food ingredients industry is a future growth driver as agriculture expands into the food, bio, and healthcare sectors. By establishing a comprehensive support system that organically connects government policy design with on-the-ground execution by local authorities, we can not only enhance the added value of agriculture but also significantly strengthen the global competitiveness of Korea's green bio industry."

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