KOREA FOUNDATION

“Loconomy” Trend Enhances Value of Locality

The meaning behind the portmanteau “loconomy” extends past the simple definition of “local economy.” This Korean neologism refers to the production and consumption of goods and services representative of a particular region. Outstanding examples of this can be seen in franchises’ promotion of local Korean produce with special dishes, such as McDonald’s JindoGreen OnionCream Croquette Burger, with green onions from Jindo County, South Jeolla Province; Starbucks’s Yuja Passion Fizzio, a soda with yuja (also known as yuzu) from Goheung County, South Jeolla Province; Goobne Chicken’s Namhae Garlic Crispy Chicken with garlic from Namhae County, South Gyeongsang Province; and Paris Baguette’s Jeju Maeum Sand, handmade cookies with peanuts from Udo, an island off the coast of Jeju Island. Jeju Maeum Sand, exclusively sold on Jeju Island, set a remarkable record last September with 50 million pieces sold over the four years since the treat’s debut.

These delicacies featuring local ingredients are significantly boosting Korea’s agricultural economy while enhancing the social value of the respective businesses. Naturally, the loconomy trend also increases interest in travel to regions featured in the popular products. A growing number of people seek out travel and accommodation deals—created in collaboration with regional stores—that allow them to experience local culture. The loconomy trend is led by those in their 20s and 30s pursuing ethical consumption, valuable products indigenous to specific regions, and new experiences.

LoconomyJindo Green Onion Cream Croquette BurgerYuja Passion FizzioNamhae Garlic Crispy ChickenJeju Maeum Sandtravel to regions