Busan Aims to Strengthen Coffee Industry with New R&D Initiative

Busan, South Korea – February 3, 2025 – Busan City is moving forward with plans to develop its coffee industry by integrating advanced technologies and strengthening its role as a center for coffee-related research and production. The city has been selected for the "Local Industry Collaboration Project" under the Ministry of SMEs and Startups, allowing it to establish a Coffee Industry Ecosystem R&D Cluster in Yeongdo District.

The initiative focuses on enhancing research and innovation in the coffee sector, improving supply chain efficiency, and supporting businesses through technology-driven solutions. It will involve the use of blockchain technology to streamline logistics and artificial intelligence (AI) to enhance quality control and data analysis. These efforts are expected to contribute to the growth of Busan’s coffee industry and create new opportunities for local businesses.

"To ensure sustainable growth, we must explore ways to enhance existing industries while incorporating new technologies. This initiative aims to support local businesses, improve efficiency in the coffee supply chain, and establish Busan as a hub for research and development in the sector," said Mayor Park Heong-joon.

Yeongdo District has historically been associated with shipbuilding and maritime industries, but changes in industrial demands and demographic shifts have led to economic challenges, including population decline and an aging workforce. The district has been designated as a demographically declining area, prompting efforts to revitalize the local economy by exploring new sectors.

In recent years, Yeongdo has gained attention for its growing coffee culture, hosting the Global Yeongdo Coffee Festival and developing coffee-related infrastructure such as Blue Port 2021, a cultural space, and Bongnae Coti, a coffee research and development center. Additionally, Yeongdo’s proximity to Busan Port presents an opportunity to strengthen its role in coffee logistics and trade.

The newly approved initiative is designed to support coffee businesses by integrating technology, enhancing research capabilities, and promoting collaboration among industry stakeholders. The project will be led by Busan City in partnership with Yeongdo District, Busan Technopark, and Dong-A University’s Industry-Academic Cooperation Foundation.

A key focus will be developing a smart coffee logistics system using blockchain technology to improve transparency and efficiency in the supply chain. This will help businesses manage sourcing and distribution more effectively, providing greater traceability and reliability in the coffee trade.

Additionally, the initiative aims to enhance research and development (R&D) efforts by utilizing AI-driven data analysis to improve coffee quality and consistency. The project will also involve collaboration with the Specialty Coffee Association (SCA) Korea Chapter, bringing in industry experts to provide technical consulting and knowledge-sharing programs.

Beyond technology, the project will promote coffee-related tourism and support entrepreneurs and small businesses looking to develop new coffee products. By fostering collaboration among researchers, producers, and businesses, Busan aims to enhance its position in the domestic and international coffee market.

The initiative also includes measures to support local and international professionals working in the coffee industry. Plans include legal and administrative assistance for foreign workers, as well as language and cultural training programs to facilitate industry participation.

Additionally, the project aims to assist small and medium-sized enterprises (SMEs) and startups by providing access to business development resources, networking opportunities, and technology-driven solutions. This approach is expected to contribute to the growth and competitiveness of Busan’s coffee sector while creating new employment opportunities.

With this initiative, Busan City seeks to strengthen its coffee industry by integrating technology, research, and business support measures. While the coffee sector has been growing in the region, this project is expected to provide further resources and collaboration opportunities that will contribute to long-term industry development.