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🇰🇷 South Korea /Economy & Trade

South Korea's inland salmon farming dream dashed by project withdrawal

From Hankyoreh · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Outcome reported
  • A private investor has withdrawn from a government-funded project to farm salmon and trout in Boeun, a landlocked region of South Korea.
  • The project, which aimed to establish aquaculture and processing facilities by 2028, faced challenges due to increased labor and material costs and unclear economic prospects.
  • Boeun County expressed disappointment but noted that no county funds were spent before the project's cancellation.

Boeun County's ambitious plan to cultivate salmon and trout, a dream for the landlocked region, has been abandoned. A private investor, initially selected for the "Salmonid Steelshead (Rainbow Trout) Aquaculture Industrialization Project," has submitted a notice to withdraw, prompting the county to begin cancellation procedures.

The private investor submitted a notice to withdraw from the project, and we have begun the process of cancellation.

— Boeun County OfficialAnnouncing the cancellation of the salmon and trout farming project.

The project, selected in August 2024 through a national bid, involved a total investment of 19.76 billion won (approximately $14.3 million USD). This included 5.93 billion won in national funds, 1.77 billion won from the provincial government, 4.16 billion won from the county, and 7.9 billion won from the private sector.

The private investor, identified as 'S', had planned to build aquaculture facilities spanning 3,300 square meters and processing and distribution centers covering 1,980 square meters. The goal was to distribute salmon and trout nationwide starting around 2028. However, 'S' cited rising costs for labor and materials, coupled with uncertain economic returns over the initial 4-5 years of operation before revenue generation, as key reasons for pulling out.

We had high expectations for this project, as it could have leveraged Boeun's excellent transportation access to Seoul and other regions, despite being a landlocked area.

— Park Hee-chang, Boeun County Animal and Fisheries Team LeaderExpressing disappointment over the project's failure.

'S' had requested a reduction in their self-funded portion from 40% to 20%, but this was not approved by the provincial and central governments due to concerns about fairness with other projects and fiscal constraints. Despite the disappointment, Boeun County officials noted that no county funds were expended as the project was canceled before full-scale implementation.

The investor faced difficulties due to increased costs for raw materials, equipment, and labor. The uncertain economic prospects during the initial operating period also contributed to the withdrawal.

— Boeun County OfficialExplaining the reasons behind the private investor's decision.
About this summary

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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