Vertical Farming in South Korea:
Advancing Alongside Policy Initiatives
Vertical farming remains an emerging agricultural technology in South Korea, yet to achieve full mainstream adoption. To facilitate research and commercialization, public sector support is crucial for expanding the industry’s scale. As leading vertical farming nations implement various policies to stimulate industrial growth, South Korea is also providing R&D funding and policy incentives to strengthen its domestic vertical farming sector. This article examines the national policies and initiatives aimed at fostering the development of vertical farming in South Korea.
The South Korean government first demonstrated substantial interest in vertical farming at a national level in December 2016. At the time, vertical farming had not yet achieved sufficient technological advancements, resulting in concerns regarding commercialization feasibility. In response, the Ministry of Agriculture, Food and Rural Affairs (MAFRA) initiated the “Vertical Farm Business Model Validation Project,” which sought to identify competitive vertical farming models and actively support their implementation.
Under this initiative, vertical farms that met the required land area criteria were classified into three distinct business models. The export-oriented model was designed for cultivation in regions with extreme climates, enabling international trade by providing solutions for harsh agricultural environments. The specialized crop model focused on producing high-value crops that could be integrated into the cosmetics and food industries, enhancing their commercial value and connecting vertical farms to broader market sectors. The domestic consumption model aimed to ensure stable crop production within South Korea, addressing climate fluctuations and securing reliable agricultural output.
Among each category, three particularly promising vertical farms were selected to receive KRW 715 million in funding to support their development and commercialization. As awareness of this initiative grew, vertical farming businesses gained traction in South Korea. By 2020, significant advancements had been made, and well-established vertical farming enterprises began to emerge, allowing them to receive additional support through government policies aimed at further fostering the industry’s expansion.
One of the key policies introduced in support of vertical farming was the “2050 Agri-Food Carbon Neutral Strategy,” announced in December 2021. One of the biggest obstacles to the commercialization of vertical farming has been high energy consumption, which has significantly impacted operational costs. This policy sought to address the issue by transitioning facility-based agriculture energy supply from fossil fuels to low-carbon and eco-friendly renewable energy systems. As a result, R&D funding was allocated to develop core technologies that would enable companies to optimize their energy usage, making vertical farming more economically viable.
In addition to energy-related advancements, the government introduced several other initiatives aimed at expanding vertical farming. The “Smart Agriculture Expansion Plan” was launched to accelerate agricultural innovation, while the Agri-Food Venture Startup Promotion Program was revised to include vertical farming businesses within its support framework. Since 2022, government funding has consistently supported the technological development and practical implementation of vertical farming, broadening its reach within the industry.
Beyond technological support, regulatory reforms and policy incentives for individuals and businesses operating vertical farms have been enacted since 2023. In December 2023, smart crop cultivation facilities, including vertical farms and smart farms, were added to the list of temporary alternative land use allowances within agricultural zoning regulations. Additionally, for entities meeting specific conditions, the installation of vertical farms within agricultural promotion zones was permitted, marking a significant deregulation effort in the industry.
To further integrate vertical farming within industrial sectors, the government has collaborated with relevant ministries to grant vertical farms eligibility for industrial complex admission as of 2024. This policy was specifically designed to minimize the legal disparities between vertical farms and conventional agricultural land, ensuring that businesses investing in vertical farming could operate with fewer restrictions.
Export-driven initiatives also play a vital role in South Korea’s vertical farming industry. Government-backed consortium projects have enabled South Korean vertical farm enterprises to expand globally, enhancing national competitiveness in smart agriculture.
One significant milestone occurred in July 2024, when MAFRA and the Korea Agricultural Technology Promotion Agency established an NSIP Consortium Agreement with Saudi Arabia under the “Smart Farm Export Promotion Project.” Leading global smart farm companies, including Nongshim Farm, committed to overseeing the construction and automation of vertical farm facilities and business operations by 2025. Supporting firms such as S-Farm, IO Crops, and ForMeet contributed expertise in smart indoor farming solutions beyond traditional vertical farming.
This large-scale international collaboration is designed to address challenges faced by Middle Eastern nations struggling with crop cultivation in extreme climates, positioning South Korean vertical farming as a strategic and economically advantageous solution. With such initiatives in place, South Korea’s vertical farming technology is expected to gain global recognition and further expand its market influence.
Under this initiative, vertical farms that met the required land area criteria were classified into three distinct business models. The export-oriented model was designed for cultivation in regions with extreme climates, enabling international trade by providing solutions for harsh agricultural environments. The specialized crop model focused on producing high-value crops that could be integrated into the cosmetics and food industries, enhancing their commercial value and connecting vertical farms to broader market sectors. The domestic consumption model aimed to ensure stable crop production within South Korea, addressing climate fluctuations and securing reliable agricultural output.
Among each category, three particularly promising vertical farms were selected to receive KRW 715 million in funding to support their development and commercialization. As awareness of this initiative grew, vertical farming businesses gained traction in South Korea. By 2020, significant advancements had been made, and well-established vertical farming enterprises began to emerge, allowing them to receive additional support through government policies aimed at further fostering the industry’s expansion.
One of the key policies introduced in support of vertical farming was the “2050 Agri-Food Carbon Neutral Strategy,” announced in December 2021. One of the biggest obstacles to the commercialization of vertical farming has been high energy consumption, which has significantly impacted operational costs. This policy sought to address the issue by transitioning facility-based agriculture energy supply from fossil fuels to low-carbon and eco-friendly renewable energy systems. As a result, R&D funding was allocated to develop core technologies that would enable companies to optimize their energy usage, making vertical farming more economically viable.
In addition to energy-related advancements, the government introduced several other initiatives aimed at expanding vertical farming. The “Smart Agriculture Expansion Plan” was launched to accelerate agricultural innovation, while the Agri-Food Venture Startup Promotion Program was revised to include vertical farming businesses within its support framework. Since 2022, government funding has consistently supported the technological development and practical implementation of vertical farming, broadening its reach within the industry.
Beyond technological support, regulatory reforms and policy incentives for individuals and businesses operating vertical farms have been enacted since 2023. In December 2023, smart crop cultivation facilities, including vertical farms and smart farms, were added to the list of temporary alternative land use allowances within agricultural zoning regulations. Additionally, for entities meeting specific conditions, the installation of vertical farms within agricultural promotion zones was permitted, marking a significant deregulation effort in the industry.
To further integrate vertical farming within industrial sectors, the government has collaborated with relevant ministries to grant vertical farms eligibility for industrial complex admission as of 2024. This policy was specifically designed to minimize the legal disparities between vertical farms and conventional agricultural land, ensuring that businesses investing in vertical farming could operate with fewer restrictions.
Export-driven initiatives also play a vital role in South Korea’s vertical farming industry. Government-backed consortium projects have enabled South Korean vertical farm enterprises to expand globally, enhancing national competitiveness in smart agriculture.
One significant milestone occurred in July 2024, when MAFRA and the Korea Agricultural Technology Promotion Agency established an NSIP Consortium Agreement with Saudi Arabia under the “Smart Farm Export Promotion Project.” Leading global smart farm companies, including Nongshim Farm, committed to overseeing the construction and automation of vertical farm facilities and business operations by 2025. Supporting firms such as S-Farm, IO Crops, and ForMeet contributed expertise in smart indoor farming solutions beyond traditional vertical farming.
This large-scale international collaboration is designed to address challenges faced by Middle Eastern nations struggling with crop cultivation in extreme climates, positioning South Korean vertical farming as a strategic and economically advantageous solution. With such initiatives in place, South Korea’s vertical farming technology is expected to gain global recognition and further expand its market influence.
Korea Institute of Planning and Evaluation for Technology in Food, Agriculture and Forestry, 「Domestic and International Trends and Development Directions of Vertical Farms」, 『2024-02, Industry, Technology, and Policy Trend Report』