[Edaily Marketin Soyoung Park Reporter] As the government champions the revitalization of regional investment, the capital market’s attention is turning toward regional areas.

While regional investment is often narrowly associated with tourism, cafes, and cultural content, some argue that there is a need to increase interest in “agriculture,” which actually forms the backbone of the regional economy.

This analysis reflects the view that agriculture is not merely a primary industry but an anchor industry that contributes to the regional economy. The decline in the working-age population is also increasing the potential for the commercialization of agriculture. Attention is focused on whether agriculture will establish itself as a new destination for regional investment.

According to the domestic investment banking (IB) industry on the 13th, as the government, local governments, and investment institutions move to expand regional investment, a market with related funds totaling approximately 3 trillion won is taking shape. According to the Agri-Food Venture Investment Association, the total capital raised for all relevant fund-of-funds operated under the “Act on the Formation and Operation of Agricultural, Forestry, Fisheries, and Food Investment Funds” stood at 2.6 trillion won as of the end of last year.

As the agri-food venture investment market has grown, there have been consistent calls within the industry for specialized investment review professionals. Along with the major shift toward artificial intelligence (AI), the number of technology-based agri-food companies—such as those in food tech, green biotechnology, and smart agriculture—is increasing. This means the time has come for investors to possess the ability to professionally evaluate a company’s technological capabilities and business viability.

Accordingly, the Korea Agri-Food Venture Investment Association recently decided to introduce a private professional certification system to revitalize the agri-food venture ecosystem. The goal is to train “Agri-Food Venture Investment Review Experts”—venture investment reviewers with specialized expertise in the agri-food sector. Based on this, the number of full-time staff members holding this certification at an investment firm is expected to influence whether it is selected as a general partner (GP). Recently, the association also submitted a proposal to the Ministry of Agriculture, Food and Rural Affairs to grant differential bonus points when applying for investments in agri-food fund-of-funds.

Public opinion is also growing in favor of diversifying investment areas. Some argue that the agricultural “production” sector should be reconsidered as a valid investment target. Critics point out that policy funds must go beyond investments centered on smart farms and food tech. This argument stems from the fact that agriculture serves as an anchor industry for regional economies. This is because local people engaged in agriculture generate income, create markets through consumption, and contribute to maintaining the population by creating jobs.

In fact, agriculture accounts for a significant share of the local economy. According to Dr. Kim Young-hee of the Institute of Green Biotechnology at Seoul National University, agriculture and forestry account for 17% of the Gross Regional Domestic Product (GRDP) in Pyeongchang County, Gangwon Province. This figure is higher than the share of tourism-related industries—such as food, lodging, culture, and sports—which stands at 14%.

Dr. Kim Young-hee emphasized that for people to remain in rural areas, there must be industries that provide a sustainable source of income. She explained, “In rural areas, if the number of people engaged in agriculture declines, the demand for local consumption and daily living services—such as restaurants and shops—that rely on them also decreases,” adding, “Ultimately, this can lead to a deterioration in living conditions.”

An official from the venture capital (VC) industry added, “Agriculture has long been treated as a traditional industry and remained outside the scope of the capital market.” He continued, “However, since agriculture remains the backbone industry supporting the local economy and employment in many rural areas, it is necessary to consider the industrial foundation when addressing regional depopulation.”

With the working-age population declining, a restructuring of the agricultural sector is inevitable. Consequently, there is growing optimism that if the agricultural production sector evolves toward “corporatization,” it could open up new avenues for investment. Analysts suggest that corporatization is achievable by connecting competitive young farmers and agricultural businesses with management expertise, distribution networks, technology, and capital.

A prime example is the agricultural enterprise “DS Foods,” based in Yeongju, North Gyeongsang Province. Starting with apple production, the company expanded its business to include packing, branding, and distribution. Upon achieving corporate transformation, the company’s revenue grew from less than 9 billion won to over 13 billion won. The DS Foods case demonstrates that even within the agricultural production sector, companies with revenue in the 10 billion won range can emerge.

An official in the investment banking industry stated, “The current structure—which ranges from small-scale, fragmented farms to consumers—can be upgraded through the emergence of agricultural enterprises that integrate production-area consolidation, sorting and packing, processing, branding, distribution, and data collection.” They added, “From an investor’s perspective, this is not merely about investing in farmers; it presents an opportunity to invest in companies that integrate the fragmented agricultural value chain and boost productivity.”

Another official added, “Investment in agriculture can lead to foundational investments that spur the development of secondary and tertiary industries, such as processing and distribution,” noting, “With industrial restructuring becoming inevitable due to the shrinking working-age population, now is the time to reevaluate the roles of corporateization and capital.”