Due to the changing lifestyle of Koreans, a significant makeover has been witnessed in the South Korean food processing industry in the past few years. Now more and more women are getting into some or the other occupation, hence convenience of cooking plays an important role in consumer decision making while buying food. Quality of food is a key factor, as the health conscious Koreans are ready to spend huge bucks on good quality edibles. Also, with most of the youngsters preferring ready-to-eat food, there has been a significant raise in the demand for processed food in South Korea.

The food processing industry in South Korea, which is typically a domestic market oriented industry, accounts for a considerable share of national income. The domestic market itself consumes more than 85% of food produced every year. Moreover, almost 88% of grain used as a raw material for processed food is imported from abroad because the prices of domestic agricultural products in Korea are comparatively higher.

Regrettably at present, the food processing industry of Korea is suffering from lack of sufficient funds and also facing a stiff competition from countries such as North Korea and China.

As per a recent market research report named, "Food Processing Industry In South Korea (2005)", "Economists are concerned about the decline in the economic growth potential of South Korean food industry". The report also discusses the implications in the policy for farmers in order to enhance their profitability and also help them maintain farming as a livelihood in this changing scenario. As per experts, "There is a strict need of more positive and productive relations between the workers and management for further development of the food processing industry in Korea".

These economic zones are a strategy to make Korea more attractive in the eyes of foreign investors and to draw them to the country.

The project includes a technology complex to house research centers and venture start-ups alongside the Korean Institute of Technology. Two more complexes, for biotechnology and for knowledge and information will be built by 2008.

These projects, which have high-level political backing, are supported by a package of generous financial incentives. Other incentives include simplified administrative procedures, heavily subsidized land leases on government owned land, tax breaks and linguistic support.

Situated directly between Japan and China, South Korea is at the centre of a vast Asian market with a total population of two billion, including 500 million in the ASEAN (Association of Southeast Asian Nations) countries, with which, along with China and Japan, Korea enjoys a special commitment to economic cooperation. North-east Asia alone accounts for about 24% of the world’s population and 19% of global production.

South Korea's gateway strategy is designed to leverage its geographic and geocultural advantages while offering a new, friendly business face to potential investors in the form of SEZs in the southern part of the peninsula. Foreigners, foreign companies, and international economic organizations can be involved in free corporate activities in these economic zones offering a range of special advantages, including tax, labor, regulatory and other incentives.

South Korea is a cheaper location than Japan and more straightforward from a regulatory point of view than China, having opened its markets decades ago.

Generally, it is argued that the special economic zone concept is attractive because it is much easier to resolve the problems of infrastructure and governance on a limited geographical area than it is to resolve them countrywide. Such economic zones cannot be insulated from the broader institutional and economic context of the country and be treated as an economy within the economy. Zones are a part of the economy and require overall improvement in the investment climate to ensure success in the long run. They should not, therefore, be viewed as an alternative to the overall development model. This is perhaps the reason why SEZs failed to fulfill the role of engines of industrialization in most countries on a sustainable basis.