Loconomy, a strategy combining local and economy, is becoming a key product planning approach in the food and dining industry. Companies are not only introducing new menus featuring locally sourced ingredients but also creating experiential spaces that showcase local attractions and culture, thereby broadening their engagement with consumers.
According to industry sources on September 27, Daesang Group collaborated with Chungbuk's Goesan County as part of its 'Knowledge Respect Project' to host the 'Goesan Chaltteok Success Run' pop-up in Seongsu-dong, Seoul, from September 5 to 13. The event featured unique food items made from university-grade sweet corn and recreated local attractions such as Yeonpyeong Saejae and Suok Waterfall, attracting approximately 12,000 visitors over nine days.
Baekmidang is showcasing loconomy menus utilizing local ingredients like Jeongseon blueberries and Yeoncheon adlay through a partnership with the Ministry of the Interior and Safety. Recently, the company expanded its product line by launching three fall-themed 'Apple Series' items, which combine domestic apple syrup with organic milk yogurt ice cream. Starbucks Korea has developed the 'Sangju Shine Muscat Aid' using Shine Muscat grapes from Sangju, available at 122 small business cafes nationwide.
The scope of collaboration is also expanding to rest areas and the food supply sector. Sajo Foodist is selling pork rice bowls and jjigae made with Jangsu black pork at the Deogyusan Rest Area, while the Gochang Dolmen Rest Area offers bibimbap and grilled pork rice bowls made with Gochang green barley and bokbunja. Food supply companies like Hyundai Green Food, CJ Freshway, Our Home, and Samsung Welstory are regularly purchasing or establishing contract farming systems for ingredients such as Seosan onions, Goesan chives, Cheonan cucumbers, and Haenam spring greens for group meals.
The growing interest in loconomy among companies stems from the need for product differentiation. In a market flooded with similar new products, the recognition and unique stories of local sources provide consumers with new purchasing motivations. Planning specialty products as limited-edition or seasonal menus and implementing local culture through pop-ups are also advantageous. This approach can enhance corporate image through coexistence with local farmers.
Consumer responses have been positive. A survey conducted by Embrain Trend Monitor with 1,000 adult men and women found that 81.6% of respondents had purchased loconomy products. The primary reason for their purchases, cited by 49.6% of respondents, was the enjoyment of local characteristics, followed by 39.2% who felt it provided a special experience and memory. The unique stories and experiences of localities are influencing product selection.
For local farmers, loconomy represents an opportunity to expand markets and promote specialty products. McDonald's Korea's 'Taste of Korea' project, a notable coexistence initiative, is estimated to have generated approximately 61.7 billion won in social and economic value from 2021 to 2024. This figure includes an increase in local brand value of 56.7 billion won and an increase in farmers' actual income of about 4.5 billion won, converted into monetary value.
As the interests of product differentiation and local coexistence align, collaborations are expected to continue. An industry insider stated, 'Developing products that merge local specialties and cultural content serves as a branding tool for companies while providing tangible benefits of market expansion for localities. We anticipate diverse forms of loconomy collaboration, spanning product planning, pop-ups, and merchandise, to continue in the future.'
* This article has been translated by AI.
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