Korea aims to be pet-friendly by doubling market by 2027

Industry

Published: 10 Aug. 2023, 16:31

Korea aims to be pet-friendly by doubling market by 2027

A dog wearing a cherry-shaped necklace poses for a photo at the K-Pet Fair held in Coex, southern Seoul, on July 21. [YONHAP]

The government plans to double the size of the pet care industry to 15 trillion won ($11.4 billion) by 2027.

The pet food, pet healthcare, pet service and pet tech markets will be fostered into a premium market under the “Everywhere K-pet Care Industry” goal, the Ministry of Agriculture, Food and Rural Affairs announced Wednesday.

The ministry said the pet market has become a new growth industry generating new jobs as both the number of pet owners and emphasis on animal rights increase.

The number of households with pets grew 65.4 percent between 2012 and 2022 to 6.02 million. However, the domestic pet market is still relatively small compared to the global market, and was $6.2 billion, or 1.6 percent of the global pie, as of 2022, according to Seoul National University.

Dogs eye pet food samples displayed at the Daegu Pet Show 2023 held in Exco, Daegu, on June 9. [NEWS1]

The government’s pet project will focus on promoting four core sectors: pet food, pet healthcare, pet service and pet tech.

Pet food will be distinguished from food for livestock under a pet food-specialized system on par with global standards by 2024. The new system will regulate how pet foods are categorized and advertised as well as their nutrition requirements.

The government aims to fuel the pet food industry to $5 million in pet food exports by 2027, triple 2022's $1.49 million figure.

In pet healthcare, the government will ease the weight of value-added tax imposed on some 100 frequently-occurring medical care, including internal, skin, eye, surgery, emergency and dental treatments from October. The move is estimated to cut value-added tax by up to 90 percent.

A veterinarian examines a dog at an animal clinic in Seongbuk District, northern Seoul, on Jan. 4. [NEWS1]

Field tests for online treatments will be conducted in the coming years, with the Food Ministry to consult with the Financial Services Commission to develop new pet insurance plans and allow their sales at animal hospitals.

For pet services, a new national certificate for animal trainers and behavior instructors will be created to issue around 1,500 units annually starting in 2024. Systematic improvements will also be implemented to increase the number and roles of veterinary nurses.

The Animal Protection Act will be amended later in the year to lift the current 300-meter distance restriction between a pet burial facility and densely populated areas.

A pet owner spends time with her puppy at a dog playground in Songpa District, southern Seoul, on May 18. [NEWS1]

In the pet tech sector, selected startups will receive support worth 2.8 million won. This will be on top of the 10-billion-won support for pet startups and low-interest corporate loans.

“Pet-related industries are commonly found in developed countries but are still in their early growth phase in Korea,” Food Minister Chung Hwang-keun said.

The government will promote the pet care industry domestically and pioneer its export expansion, he added.

BY IM SOUNG-BIN, SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]