The Korea Food Industry Cluster Promotion Agency has signed an agreement with Kazakhstan’s Shin-Line Group to support the development of a food industry cluster in Kazakhstan and expand cooperation between food companies in the two countries.
The memorandum of understanding was signed at the Four Seasons Hotel in Seoul on Tuesday by the agency's Chairman Kim Deok-ho and Shin-Line Group Chairman Andrei Shin, the South Korean agency said.
The agreement follows discussions held during the Korea-Kazakhstan Business Roundtable and is intended to create a framework for cooperation in food cluster development, business support and market expansion.
Under the agreement, the two organizations will work together on consulting and advisory services for the proposed Kazakhstan food cluster, strategies for its operation and support programs for food companies.
They plan to promote exchanges between South Korean and Kazakh food businesses, help companies enter each other’s markets and share information about assistance programs offered by governments and related organizations.
Shin-Line Group, described by the agency as Central Asia’s largest ice cream manufacturer, has production facilities and an established distribution network in Kazakhstan. The group also operates about 70 CU convenience stores in the country.
During negotiations, the two sides discussed using that retail network to introduce products made by companies based at South Korea’s National Food Cluster to consumers in Kazakhstan. The initiative could provide participating companies with local retail access and help them expand their distribution channels in Central Asia.
The Korea Food Industry Cluster Promotion Agency operates the National Food Cluster in Iksan, North Jeolla Province. It plans to draw on its experience supporting food manufacturers, research and development activities, and commercialization projects as it advises Shin-Line on the establishment and operation of the Kazakhstan cluster.
"This agreement provides an opportunity to expand food industry cooperation with Kazakhstan by drawing on our experience operating the National Food Cluster," Kim said.
"We will establish a practical framework for cooperation that enables food companies from both countries to grow in new markets."
shinyb@heraldcorp.com
