2024.05.21
“ The problem of regional extinction is serious. We also feel the difficulty of recruiting talent and lack of infrastructure while carrying out smart farm business in the region. However, my confidence has grown after participating in the public-private cooperative regional revitalization project in Yeongju, Gyeongbuk. I believe that if various entities such as large corporations, local governments, and accelerators work closely together and lead capable social ventures, the number of startups will increase and the problem of regional extinction can be solved.”
The sustainable way to solve the problem of regional extinction is regional economic development. When money circulates, people gather, and when people gather, the region becomes a better place to live. That is why local governments have been trying to attract excellent companies to the region. What is different from the past is that efforts are increasing to support new players to start competitive businesses in the region, beyond bringing in already successful companies.
The STAXX project, which has been carried out in Yeongju, Gyeongbuk for the past three years, has attracted attention as an experiment in which a large company (SK Specialty) based in the Yeongju area, local governments (Gyeongsangbuk-do, Yeongju City), and an accelerator (Impact Square) collaborated to intensively foster 10 social ventures that will settle in the region. The Korea Fisheries Research & Development Institute (CEO Kim Min-su), which possesses the technology to cultivate marine products inland, is also a participating company in STAXX.
CEO Min-su Kim, who majored in aquatic life sciences, said, “The open innovation attempts of large corporations and startups tend to end as one-time attempts, but STAXX is a realistic project that provides multi-faceted support so that local businesses can settle and grow by developing customized businesses.” In the May SOVAC People, we will have a Q&A with CEO Min-su Kim, who aims to succeed in Yeongju and expand across the country and the world, to examine the challenges of social ventures that solve the problem of local extinction through business.
CEO Kim Min-su is explaining the smart aqua farm model that is easy to start in the region. / Photo = Reporter Jeong Jin-yeong.
Q. Please introduce the Korea Fisheries Research & Development Institute. The business item called ‘Smart Aqua Farm’ is interesting.
A. 'Smart aqua farm' is an aquaculture method that uses information and communication technology (ICT) to automatically observe the fish's growth environment remotely and manage it in optimal conditions without time and space constraints. Thanks to this, aquaculture is possible even inland far from the sea. The problem of marine pollution is becoming increasingly serious. That's why there are already many land-based aquaculture projects that are managed cleanly and healthily in Europe, Singapore, and the US. Since they are produced inland near cities and supplied immediately, the distribution route is short, so you can taste fresh seafood.
With our unique standardized system that purifies water quickly and easily, even non-experts can raise healthy fish. Because of these advantages, we are confident that the use of smart aqua farm technology will encourage individual entrepreneurship in the region and, as a result, contribute to solving the problem of local extinction.
The ultimate mission is to contribute to the healthy life of everyone by expanding the base of aquaculture. I have been interested in shrimp since I was young. First, I will conquer smart shrimp farming and create a 'shrimp kingdom'.
Q. The headquarters is in Chuncheon, Gangwon-do, and currently, the company is mainly operating in Yeongju, Gyeongbuk. Many companies are looking for opportunities in the metropolitan area, so why is the Korea Fisheries Research & Development Institute betting on the region?
A. It depends on the industry. The aquaculture items we chose actually have many advantages for doing business in the region. Land is needed to build aquaculture farms. In regions where the extinction of the region is a concern, the cost of building infrastructure, including land, tends to be low. Also, in the case of aquaculture, the size of the consumer market in Gyeongbuk, where we are located, is more than five times larger than that of the metropolitan area. With low construction costs and a large market, there is no reason not to start a business in the region. And I believe that if we become number one in the region, we can expand to the metropolitan area at any time. Just like a chicken franchise that started in Daegu and expanded nationwide.
There are difficulties because it is a region, but various ideas and support are coming from the government and private sectors to solve the problem of regional extinction, so I believe that any company will have ample opportunity if it has a plan that fits the characteristics of the region and the ability to execute it.
Q. What prompted you to participate in the public-private cooperation regional revitalization project in Yeongju, Gyeongbuk?
A. For the past several years, we have been focusing on technology research and marketability studies in Chuncheon, Gangwon-do, where our headquarters is located. After many failures, we succeeded in producing white shrimp (sea shrimp) by purifying the existing water instead of drawing actual seawater and exchanging it every time, and we connected with local buyers and sold the shrimp. Based on this experience, we decided that it was time to challenge ourselves in a real market with a real scale.
Based on the market research results, we thought Gyeongsangbuk-do was a strong candidate, but we couldn't just go there without any regional connections. Then, we were selected for the STAXX project co-planned by Impact Square, one of our early investors. Believing it to be a significant opportunity, all employees moved to Yeongju and are starting the business in earnest. We joined last year, but I wish we had joined sooner.
CEO Kim Min-su and his staff are inspecting the Smart Aqua Farm tank. / Provided by Korea Fisheries Research & Development Institute
Q. Please tell us what kind of practical help you are receiving from this public-private cooperation project.
We are really confident in our technology. However, since this business is a type of aquaculture farm, or a factory, it was not easy to convince the local residents. Even if we purify the water, there were many cases where they vaguely worried about the surrounding pollution. The local government acted as an intermediary, brought the local residents together, and explained that it was a good thing for the local area, which was helpful.
Of course, we had to do everything ourselves to actually release it. We put in a lot of effort, such as buying a box of shrimp and soju that we produced ourselves and visiting the residents to explain it to them. After tasting it, some people said, “This is it. It’s delicious.” and gradually began to open their hearts.
Participating in this public-private partnership project has definitely helped us expand. This is because of the credibility that comes from being recognized by large corporations. I believe this will greatly contribute to gaining the trust of local government officials, not only when we are operating in Yeongju, but also when we expand to other regions in the future. The accelerator, Impact Square, also played a great role as an intermediary in terms of business strategy. When small startups like us talk directly to large corporations, there are parts that are not smooth due to differences in perspectives and experiences, but thanks to Impact Square’s coordination, goal setting and execution became easier.
I think this is clearly an advantage that is different from the typical open innovation cases of large corporations and startups. The way in which various public and private entities support and communicate closely with each other based on their own characteristics helps to lay the foundation for continuing activities in the region even after the project ends.
Q. Please tell us what goals you would like to achieve in Yeongju. I’m also curious about your future plans for full-scale business expansion.
I tell my team that making a success of the business in Yeongju, Gyeongbuk this time is like getting a top grade on the College Scholastic Ability Test. It is an essential requirement for getting into a good university. This is the first time that we are commercializing a B2C form model that even beginners can do. If we do well this time, we are confident that we can install Smart Aqua Farms anywhere in the country where there is a market, and later expand to Las Vegas, Southeast Asia, or anywhere else.
Currently, we have submitted a construction application for a shrimp farm in Yeongju City, and if the reserve fund is approved in July or August, we will start construction and start selling shrimp early next year. Since shrimp grow to a level that can be sold in 120 days, there are many advantages in terms of quick business execution. We are also looking for sites in Yeongcheon, Gyeongbuk, etc. so that we can expand immediately after the initial verification in Yeongju.
Q. What are the difficulties faced by companies that are at the forefront of solving the problem of regional extinction? Please let us know what kind of support is needed to resolve these issues.
I think it is important to provide a living environment that people want to live in. Representatives like me and some others may be able to hold on with a dream, but the rest of the members may have different thoughts. Business success is important, but it is also important to have an environment where you can live comfortably with your loved ones right now. If families do not stay together, there is a limit to solving the problem of regional extinction. In this area, it is also necessary for local governments to prepare the ground in advance to some extent.
However, I think this can be resolved to some extent through cooperation. There are 10 companies participating in the STAXX project this time. Various collaborations can be carried out in business, and as more companies come to Yeongju and do business, a living cluster can be created where they gather. Until then, we have to foster the self-reliance of companies. We will definitely create a successful model in Yeongju.
Written by: Social Impact News Reporter Jinyoung Jeong
View the Full Article Text
2024.05.21
“ The problem of regional extinction is serious. We also feel the difficulty of recruiting talent and lack of infrastructure while carrying out smart farm business in the region. However, my confidence has grown after participating in the public-private cooperative regional revitalization project in Yeongju, Gyeongbuk. I believe that if various entities such as large corporations, local governments, and accelerators work closely together and lead capable social ventures, the number of startups will increase and the problem of regional extinction can be solved.”
The sustainable way to solve the problem of regional extinction is regional economic development. When money circulates, people gather, and when people gather, the region becomes a better place to live. That is why local governments have been trying to attract excellent companies to the region. What is different from the past is that efforts are increasing to support new players to start competitive businesses in the region, beyond bringing in already successful companies.
The STAXX project, which has been carried out in Yeongju, Gyeongbuk for the past three years, has attracted attention as an experiment in which a large company (SK Specialty) based in the Yeongju area, local governments (Gyeongsangbuk-do, Yeongju City), and an accelerator (Impact Square) collaborated to intensively foster 10 social ventures that will settle in the region. The Korea Fisheries Research & Development Institute (CEO Kim Min-su), which possesses the technology to cultivate marine products inland, is also a participating company in STAXX.
CEO Min-su Kim, who majored in aquatic life sciences, said, “The open innovation attempts of large corporations and startups tend to end as one-time attempts, but STAXX is a realistic project that provides multi-faceted support so that local businesses can settle and grow by developing customized businesses.” In the May SOVAC People, we will have a Q&A with CEO Min-su Kim, who aims to succeed in Yeongju and expand across the country and the world, to examine the challenges of social ventures that solve the problem of local extinction through business.
Q. Please introduce the Korea Fisheries Research & Development Institute. The business item called ‘Smart Aqua Farm’ is interesting.
A. 'Smart aqua farm' is an aquaculture method that uses information and communication technology (ICT) to automatically observe the fish's growth environment remotely and manage it in optimal conditions without time and space constraints. Thanks to this, aquaculture is possible even inland far from the sea. The problem of marine pollution is becoming increasingly serious. That's why there are already many land-based aquaculture projects that are managed cleanly and healthily in Europe, Singapore, and the US. Since they are produced inland near cities and supplied immediately, the distribution route is short, so you can taste fresh seafood.
With our unique standardized system that purifies water quickly and easily, even non-experts can raise healthy fish. Because of these advantages, we are confident that the use of smart aqua farm technology will encourage individual entrepreneurship in the region and, as a result, contribute to solving the problem of local extinction.
The ultimate mission is to contribute to the healthy life of everyone by expanding the base of aquaculture. I have been interested in shrimp since I was young. First, I will conquer smart shrimp farming and create a 'shrimp kingdom'.
Q. The headquarters is in Chuncheon, Gangwon-do, and currently, the company is mainly operating in Yeongju, Gyeongbuk. Many companies are looking for opportunities in the metropolitan area, so why is the Korea Fisheries Research & Development Institute betting on the region?
A. It depends on the industry. The aquaculture items we chose actually have many advantages for doing business in the region. Land is needed to build aquaculture farms. In regions where the extinction of the region is a concern, the cost of building infrastructure, including land, tends to be low. Also, in the case of aquaculture, the size of the consumer market in Gyeongbuk, where we are located, is more than five times larger than that of the metropolitan area. With low construction costs and a large market, there is no reason not to start a business in the region. And I believe that if we become number one in the region, we can expand to the metropolitan area at any time. Just like a chicken franchise that started in Daegu and expanded nationwide.
There are difficulties because it is a region, but various ideas and support are coming from the government and private sectors to solve the problem of regional extinction, so I believe that any company will have ample opportunity if it has a plan that fits the characteristics of the region and the ability to execute it.
Q. What prompted you to participate in the public-private cooperation regional revitalization project in Yeongju, Gyeongbuk?
A. For the past several years, we have been focusing on technology research and marketability studies in Chuncheon, Gangwon-do, where our headquarters is located. After many failures, we succeeded in producing white shrimp (sea shrimp) by purifying the existing water instead of drawing actual seawater and exchanging it every time, and we connected with local buyers and sold the shrimp. Based on this experience, we decided that it was time to challenge ourselves in a real market with a real scale.
Based on the market research results, we thought Gyeongsangbuk-do was a strong candidate, but we couldn't just go there without any regional connections. Then, we were selected for the STAXX project co-planned by Impact Square, one of our early investors. Believing it to be a significant opportunity, all employees moved to Yeongju and are starting the business in earnest. We joined last year, but I wish we had joined sooner.
Q. Please tell us what kind of practical help you are receiving from this public-private cooperation project.
We are really confident in our technology. However, since this business is a type of aquaculture farm, or a factory, it was not easy to convince the local residents. Even if we purify the water, there were many cases where they vaguely worried about the surrounding pollution. The local government acted as an intermediary, brought the local residents together, and explained that it was a good thing for the local area, which was helpful.
Of course, we had to do everything ourselves to actually release it. We put in a lot of effort, such as buying a box of shrimp and soju that we produced ourselves and visiting the residents to explain it to them. After tasting it, some people said, “This is it. It’s delicious.” and gradually began to open their hearts.
Participating in this public-private partnership project has definitely helped us expand. This is because of the credibility that comes from being recognized by large corporations. I believe this will greatly contribute to gaining the trust of local government officials, not only when we are operating in Yeongju, but also when we expand to other regions in the future. The accelerator, Impact Square, also played a great role as an intermediary in terms of business strategy. When small startups like us talk directly to large corporations, there are parts that are not smooth due to differences in perspectives and experiences, but thanks to Impact Square’s coordination, goal setting and execution became easier.
I think this is clearly an advantage that is different from the typical open innovation cases of large corporations and startups. The way in which various public and private entities support and communicate closely with each other based on their own characteristics helps to lay the foundation for continuing activities in the region even after the project ends.
Q. Please tell us what goals you would like to achieve in Yeongju. I’m also curious about your future plans for full-scale business expansion.
I tell my team that making a success of the business in Yeongju, Gyeongbuk this time is like getting a top grade on the College Scholastic Ability Test. It is an essential requirement for getting into a good university. This is the first time that we are commercializing a B2C form model that even beginners can do. If we do well this time, we are confident that we can install Smart Aqua Farms anywhere in the country where there is a market, and later expand to Las Vegas, Southeast Asia, or anywhere else.
Currently, we have submitted a construction application for a shrimp farm in Yeongju City, and if the reserve fund is approved in July or August, we will start construction and start selling shrimp early next year. Since shrimp grow to a level that can be sold in 120 days, there are many advantages in terms of quick business execution. We are also looking for sites in Yeongcheon, Gyeongbuk, etc. so that we can expand immediately after the initial verification in Yeongju.
Q. What are the difficulties faced by companies that are at the forefront of solving the problem of regional extinction? Please let us know what kind of support is needed to resolve these issues.
I think it is important to provide a living environment that people want to live in. Representatives like me and some others may be able to hold on with a dream, but the rest of the members may have different thoughts. Business success is important, but it is also important to have an environment where you can live comfortably with your loved ones right now. If families do not stay together, there is a limit to solving the problem of regional extinction. In this area, it is also necessary for local governments to prepare the ground in advance to some extent.
However, I think this can be resolved to some extent through cooperation. There are 10 companies participating in the STAXX project this time. Various collaborations can be carried out in business, and as more companies come to Yeongju and do business, a living cluster can be created where they gather. Until then, we have to foster the self-reliance of companies. We will definitely create a successful model in Yeongju.
Written by: Social Impact News Reporter Jinyoung Jeong
View the Full Article Text