Home > Business > Industry

Food industry goes (regionally) nuts with local ingredients in 'loconomy' trend

Published: 28 Jul. 2025, 15:56 Updated: 28 Jul. 2025, 19:08

Sunchang Dameun Chocolates, right, launched by Sunchang County in North Jeolla for White Day on March 14, were developed by chocolatier Pi Jeong-hun using the region’s signature gochujang, left, along with locally grown chestnuts and blueberries to create a distinctive flavor. [SUNCHANG COUNTY]

SUNCHANG, North Jeolla — Sweet potatoes from Iksan are now being served in muffins at McDonald’s. Chestnuts and blueberries from Sunchang have found their way into artisan chocolates. Korea’s food industry is embracing regional flavors from specialty ingredients, forming a trend that reshapes how and what the country eats.

Sunchang County in North Jeolla released Sunchang Dameun Chocolates on March 14 for White Day — a Korean celebration where young couples exchange candies and chocolate, developed by chocolatier Pi Jeong-hun. The chocolates combine the area’s signature gochujang with locally grown chestnuts and blueberries for a distinctive flavor.

The convenience store chain Emart24 has also joined the trend, introducing regional ingredient-based items such as bulgogi chive gimbap (seaweed rice rolls) made with Sancheong-grown chives and tomato chicken sandwiches using tomatoes from Hadong. The products are part of a regional cooperation project with the Ministry of the Interior and Safety.

Korea’s food industry is experiencing a surge in "loconomy" marketing — a portmanteau of “local” and “economy" used to describe products, services or content that reflect local characteristics. The aim is to promote local agriculture and boost regional economies while responding to consumer interest in sustainability and authenticity.

McDonald's Korea is selling the Iksan Sweet Potato Mozzarella Burger, shown here, and Iksan Sweet Potato Mozzarella Muffin from July 10 as part of its annual "Taste of Korea" campaign. [MCDONALD'S KOREA]

McDonald’s Korea has emerged as a prominent player in this space. Since July 10, the fast-food giant has been selling the Iksan Sweet Potato Mozzarella Burgers and Muffins at over 400 locations nationwide using sweet potatoes harvested in Iksan, North Jeolla. Sales surpassed 1 million units within just nine days of release.

Since 2021, McDonald’s has featured locally sourced ingredients in its "Taste of Korea" series, including garlic from Changnyeong, South Gyeongsang; green tea from Boseong, South Jeolla; scallions from Jindo, South Jeolla; and chili peppers from Jinju, South Gyeongsang.

As of April, cumulative sales of those offerings surpassed 24 million units, using around 800 tons of domestic produce.

Iksan supplied 200 tons of sweet potatoes to McDonald’s this year, following discussions with local farms and agricultural cooperatives.

“Iksan sweet potatoes, grown in fertile loess fields near Mount Mireuk, are known for their high sugar content and smooth texture,” said Iksan Mayor Jung Heon-yul. “The [McDonald’s] campaign will help promote the quality of Iksan’s agricultural products to consumers nationwide.”

Experts say the loconomy trend creates a triple-win effect: Localities gain wider distribution for their agricultural goods, companies improve their public image and increase sales and consumers get easier access to regional produce.

This has led to more collaboration between businesses, local governments, farmers and small businesses.

Since 2022, Starbucks Korea has worked with the Ministry of SMEs and Startups to select around 100 small cafes each year, providing them with its own “mutual growth beverage” recipes and free ingredients such as Gongju chestnuts, Okcheon pumpkins and Jeju hallabong, a citrus fruit grown on the island.

Since 2015, Starbucks has also donated over 5,540 tons of used coffee grounds as fertilizer to farms nationwide — including those in Gochang, North Jeolla — an in-kind contribution valued at over 1 billion won ($720,000).

A poster for Starbucks Korea's chestnut latte, made from chestnuts from Gongju in South Chungcheong, from December 2022 [STARBUCKS KOREA]

Paris Baguette, a bakery brand under SPC, has also embraced loconomy. Its Donghwa Village branch, which opened last May in Gujwa-eup, Jeju Island, features products made with regional specialties like Udo peanuts.

Still, public sentiment is mixed. A survey conducted by market research firm Embrain Trend Monitor that was released on May 21 found that while only 22.1 percent of respondents were familiar with the term “loconomy,” eight in 10 believed such products help the local economy. The survey asked 1,000 people between the ages 19 and 59.

However, many also pointed out downsides: 61.6 percent said the products were relatively expensive, 59.2 percent noted the trend often ends with one-time experiences and 50.1 percent viewed the popularity as short-lived and driven by viral content on social media or TV.

Still, the Korea Rural Economic Institute noted in its 2023 Food Consumption Trend Monitor report, released in May 2024, that the loconomy trend is driving increased sales and regional cooperation.

The report cited heightened consumer interest in “regional coexistence, environmental protection and ESG [environmental, social and governance]” as well as the “meaning out” trend, in which individuals express their personal tastes and social or political beliefs through consumption.

“As more consumers show interest in public values beyond simple taste and price, the loconomy trend is expected to bring a positive influence on our society,” the report said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM JUN-HEE [[email protected]]