Dream Farm wants to expand globally and into space

As the demand for smart farming increases, Dream Farm looks to partner with farmers globally in their mission to cultivate crops regardless of weather and environmental conditions.

Dream Farm CEO Park Hyang-jin poses with wasabi leaves in a smart farming “cube” where wasabi is cultivated in a human-free, app-controlled environment, on April 3 in Sacheon, South Gyeongsang. [PARK SANG-MOON]

[Game Changer]

SACHEON, South Gyeongsang — Inside the square cube building of Dream Farm, a leading smart farm, rows of wasabi plants thrive in a cool, carefully controlled environment devoid of human presence.

The interior of the cube, measuring 3 meters (9.8 feet) in width, 3 meters in height and 8.5 meters in length, is maintained at a temperature of 16.7 degrees Celsius (62.1 Fahrenheit) and 90.7 percent humidity, filled with the fresh scent of greenery and a pungent aroma of wasabi.

The app-controlled cube, Dream Farm believes, could bring about big changes to farming by cultivating crops like wasabi and winter strawberries regardless of weather and environmental conditions.

Smart farming is witnessing demand not only within Korea, but also from regions abroad — including the Middle East, which is notorious for its challenging agricultural environment. Dream Farm has signed a $120 million contract to establish smart farms in Saudi Arabia.

Smart farm exports from Korea have seen a significant increase, having reached $296 million in 2023, a 115.9 percent on-year rise, according to the Ministry of Agriculture, Food and Rural Affairs. The global smart farming market was valued at $15.06 billion in 2022 and is expected to reach $33.0 billion in 2027, according to BIS Research.

Like the movie “The Martian” (2015), in which an astronaut survives by cultivating potatoes on Mars, Dream Farm is conducting empirical research using smart farm technology to grow crops in space, pushing the boundaries of agriculture beyond Earth.

The Korea JoongAng Daily sat down with the CEO Park Hyang-jin at Dream Farm's headquarters in Sacheon, South Gyeongsang, on April 3 to discuss the company's journey so far and its plans for global expansion.

The interview has been edited for length and clarity.

Dream Farm CEO Park Hyang-jin speaks during an interview with the Korea JoongAng Daily at the company's headquarters in Sacheon, South Gyeongsang, on April 3. [PARK SANG-MOON]

Q : Can you explain what your company specializes in?

A : Our mission is to build a company that prospers alongside farmers. We don't just sell smart farms; we partner with farmers who buy our smart farm cubes by managing the farming process for them as well as handling the distribution of their crops. Our business model has three main revenue streams: selling the cubes, supplying the materials needed for the cubes and bringing the products grown in the cubes to market. For lower-grade products, we process them into items like cosmetics, ginseng and health supplements. Cube sales make up 40 percent of our revenue while the other two streams each contribute 30 percent.

We've turned into big data of how to fine-tune the nutrient solutions based on temperature, root conditions and plant growth stages. This crop-specific data can also be exported. We started with high-value seedlings such as sprout wraps, as well as wasabi leaves and roots. Wasabi requires water temperatures below 15 degrees Celsius to grow, but typical groundwater in Korea is 17 degrees Celsius, making traditional cultivation difficult. By maintaining an average annual temperature below 15 degrees Celsius, we can produce high-quality wasabi weighing 100 to 120 grams in just eight to nine months, compared to the 18 to 24 months it usually takes in Cheorwon, Gangwon.

We've also developed a method to grow strawberries in the summer, reversing their natural growing season. Strawberries are also highly sought after overseas, and they need lots of light and cool temperatures as they are long-day plants. By producing strawberries in 28 days during summer, we can dominate the market until the first winter strawberries appear, potentially boosting farmers' profits significantly.

In partnership with the Smart Farm Department at Gyeongsang National University, we secured an R&D [research and development] support project from the Ministry of Agriculture, Food, and Rural Affairs to develop an energy-saving solar cube. The solar cube can operate in remote areas or countries without electricity. Unlike typical smart farms that rely entirely on LED [light-emitting diode] lighting, our solar cube uses sunlight during brief periods in the morning and afternoon, blocking it during midday and supplementing with LED lights. The lighting and temperature are adjusted based on whether we are growing fruits or leaves, and the LEDs can be tuned to provide the specific wavelengths needed for each crop. This solar cube will also be implemented in the smart farms we're building in Saudi Arabia.

Dream Farm's smart farming “cube” [DREAM FARM]

Q : What makes Korean smart farms competitive?

A : Korean smart farms, or K-smart farms, stand out due to the nation's advanced IoT technology, which allows for superior automation and big data integration. This gives Korea a significant advantage over other countries. Korea's deep-rooted agricultural heritage means that our farmers have the passion and skills to grow crops even in challenging environments like Alaska. With our expertise, I believe we'll soon surpass advanced smart farming countries like the Netherlands.

China is making rapid progress in this field. They often compete with lower prices, which could pose a challenge if they enter the smart farm market. While we have a bit of a head start, we need to stay ahead by continuing to innovate and prepare for future competition.

Q : President Yoon Suk Yeol's visit to the Middle East last year helped Korean smart farming companies, including Dream Farm, expand internationally. What support are you receiving from the government, and what else is needed to make domestic smart farming more competitive?

A : Many companies are eager to expand overseas, but this has led to problems with dishonest middlemen, resulting in cases of fraud. However, by leveraging support programs from organizations like the Agriculture Ministry, the Kotra [Korea Trade-Investment Promotion Agency] and the Korea Agro-Fisheries & Food Trade Corporation, companies can now access reliable information and credit checks, especially following President Yoon's Middle East tour. This helps in finding trustworthy partners and avoiding scams.

However, there's still an issue with the distribution of seedlings, which I believe is too restricted. For instance, we have the technology to produce strawberries, but without access to the necessary seedlings due to seed regulations, production is [challenging]. Ideally, for regions like Saudi Arabia where climate and distance make distribution challenging, it would be beneficial if our seedlings could be exported on the condition that domestic companies establish smart farms and ensure secure management of the seedlings. This would open new market opportunities and aid in market expansion, which is something I strongly hope for.

Winter strawberries, a primary crop cultivated using Dream Farm's smart farming technology [DREAM FARM]

Q : How is Dream Farm progressing with international expansion?

A : We've exported and set up the first six smart farms in Ho Chi Minh City, Vietnam. These farms operate under an OEM production model where the local partners manage production, and we receive royalties.

In Saudi Arabia, we competed with smart farm companies from the Netherlands, Israel, China and Japan. The critical factors for them were year-round production capability and the ability to grow strawberries in the summer. Our technology was unique because we can maintain indoor temperatures of 18 to 20 degrees Celsius even when the outdoor temperature hits 45 degrees, which gave us a competitive edge. We plan to build facilities worth about 40 billion won ($29 million) to 50 billion won each year, aiming to complete the project by 2028. For construction, we're exploring partnering with major Korean builders like “L” and “D.”

If we can farm in the Middle East, it shows that we could potentially farm anywhere, even on Mars. Just like in the movie “The Martian” (2015), where potatoes were grown in space, we're preparing for space farming. We're researching how plants grow in zero-gravity environments within vacuum chambers, including studies on how plants can find nutrients and establish roots, possibly with the help of artificial intelligence.

Q : What are the company's future plans?

A : Domestically, we're gearing up for an IPO [initial public offering]. Last year, we chose NH Investment & Securities as our underwriter, and we aim to list on the Kosdaq in the latter half of this year.

Internationally, we've established a subsidiary in Malaysia to serve as our Asian headquarters, and our plan to establish another one in Saudi Arabia is well underway. For the first 10 years, our technicians will manage farming and distribution on a 30-70 basis, training local staff before transitioning out. This is why we needed a subsidiary in Saudi Arabia.

We are also in exploring to set up a joint venture in Japan, which is very interested in our wasabi cultivation technology. If established, we'll provide the equipment, and our Japanese partners will handle production and sales.

Additionally, we're preparing to enter Ukraine for reconstruction projects once the war ends. Despite the devastation, Ukraine has a strong agricultural background.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]