The concept of 'loconomy,' which combines local and economy, is becoming a key product planning strategy 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, Daesang Group collaborated with Chungbuk's Goesan County as part of its 'Knowledge Respect Project' to promote the appeal of regions at risk of extinction. From September 5 to 13, the company hosted the 'Goesan Chaltteok Success Run' pop-up in Seongsu-dong, Seoul, featuring unique food items made from university-grade sweet corn and recreating local attractions like Yeonpyeong Saejae and Suok Waterfall. The event attracted approximately 12,000 visitors over nine days.
Baekmidang is showcasing loconomy menus utilizing local ingredients such as 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 a fall menu called the 'Apple Series,' which includes yogurt ice cream made with domestic apple syrup and organic milk. Starbucks Korea has developed the 'Sangju Shine Muscat Aid' using Shine Muscat grapes from Sangju, which is now 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 pork rice bowls made with Gochang 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, or implementing local culture through pop-ups, is also advantageous. Companies can enhance their image through coexistence with farmers.
Consumer responses have been positive. A survey conducted by the market research firm Embrain Trend Monitor found that 81.6% of 1,000 adult respondents reported having purchased loconomy products. The most common reason for purchase, 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 their 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 regional coexistence align, collaborations are expected to continue. An industry insider stated, 'Developing products that integrate local specialties and cultural content serves as a branding tool for companies while providing practical benefits of market expansion for regions. 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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