The Need for Strategic Clustering to Drive Agricultural Policy Transformation and Strengthen Global Competitiveness

□ The second-phase relocation of public institutions should go beyond promoting balanced regional development and focus on building self-sustaining innovation ecosystems by aligning regional strategic industries with relocating institutions’ core capabilities. In this context, the National Agricultural Cooperative Federation (NACF) stands out as Jeonbuk’s most critical anchor institution.

□ Major economies are gaining a competitive edge through cluster-based innovation strategies that combine agri-bio research, production, distribution, and finance within a single region. The NACF’s relocation should serve as a catalyst for structural transformation that facilitates the effective delivery of national agricultural policy.

Jeonbuk—the Heart of the Agri-Bio Industry and National Agricultural Policy Delivery

□ Jeonbuk is the only region in Korea with a concentration of key agri-bio research, industrial, and financial infrastructure, including the Rural Development Administration (RDA), Korea Food Research Institute (KFRI), Korea Agriculture Technology Promotion Agency (KOAT), Korea National Food Cluster (FOODPOLIS), and National Pension Service (NPS). This concentration makes Jeonbuk an ideal location for developing a fully integrated agri-bio ecosystem.

□  Linking the NACF’s nationwide network of agricultural and livestock cooperatives and farmer organizations with Jeonbuk’s agri-bio infrastructure could accelerate the nationwide diffusion of research outcomes while strengthening linkages across the entire value chain, encompassing production, processing, commercialization, logistics, exports, finance, and investment.

Leveraging NACF Relocation to Build a Platform for Agri-Bio Industry Advancement

□ (One-Stop Platform for Research-to-Field Innovation) Harness the NACF’s nationwide network to translate RDA and KFRI research outcomes into practical applications, establish a demonstration framework that creates a virtuous cycle linking technology, production, and distribution, and ensure that on-farm innovation leads to higher incomes.

- Shift away from research institution–led technology development and stand-alone pilot projects toward a national agricultural innovation delivery system spanning R&D, field demonstration, nationwide rollout, and market diffusion. This transition should maximize the impact of agri-bio R&D investment.

□ (K-Food Export Platform) Integrate the processing and manufacturing capabilities of FOODPOLIS, the NACF’s distribution and logistics infrastructure, and Saemangeum New Port into a cohesive system to create a strategic gateway for K-food, covering the entire process from agri-food raw material sourcing to export.

- Establish a stable raw material sourcing system in which local agricultural and livestock cooperatives and producer organizations provide raw materials through contract farming, while NongHyup Agribusiness Group handles quality control, procurement, and logistics. Leverage KFRI and FOODPOLIS to develop high-value-added products and strategic export products and test their market viability through the NACF’s distribution channels.

□ (Agri-Bio Finance Platform) Pool the asset management capabilities of NongHyup Financial Group and the NPS to foster a financial ecosystem tailored to the agri-bio industry, offering stage-specific support from startup through scale-up for businesses in smart farming, food tech, and green bio.

- Provide Jeonbuk’s agri-bio businesses with a financial growth ladder that enables them to progress through startup, commercialization, and business expansion toward capital market entry. Broaden the role of NongHyup Financial Group from serving primarily farmers to driving growth across the agri-bio industry.

Capitalizing on NACF Relocation to Usher in a New Phase of Growth for Jeonbuk’s Agri-Bio Industry

□ The NACF’s relocation to Jeonbuk would close the loop across the agri-bio value chain—spanning R&D, field adoption, production, processing, distribution, exports, finance, and reinvestment—and serve as a turning point for sustainable growth in agriculture and rural communities.

□ The time has come for a comprehensive relocation strategy that aligns NongHyup’s key functions with Jeonbuk’s agri-bio value chain: policy and coordination at the NACF headquarters; production, distribution, and exports at NongHyup Agribusiness Group; and investment and corporate finance at NongHyup Financial Group.

□ To strengthen its bid for the NACF’s relocation, Jeonbuk should pursue flagship joint projects and build a sustained partnership with the NACF, promote a shared understanding among local agricultural and livestock cooperatives and farmers, enhance legal and institutional readiness, and arrange for a suitable relocation site and favorable living conditions for employees.

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