Busan is good

Busan Company Develops Korea’s First Continuous Production Technology for Eco-Friendly Leather Made from Mushroom Mycelium

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Busan Metropolitan City (Mayor Park Heong-joon) announced that a local company, in collaboration with the Korea Institute of Materials and Components Convergence (KIMCO), has successfully developed the country’s first continuous production process for eco-friendly leather using mushroom mycelium.

○ Mushroom mycelium-based vegan leather is an environmentally friendly leather alternative made from fibrous fungal mycelium. It has garnered global attention for its alignment with animal welfare and reduced environmental impact, with significant investment underway in the EU and the U.S.

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The “Biomass-Based Vegan Leather Development and Demonstration Cluster Project” was selected by the Ministry of Trade, Industry and Energy in May 2024 and is being implemented with a total budget of KRW 23 billion (KRW 14.8 billion from the national government, KRW 3 billion from Busan City, and KRW 5.2 billion in private investment).

This achievement comes just one year into the project.
(Biomass: The total mass of biological matter including microorganisms involved in ecological cycles.)

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The first domestic development of continuous vegan leather production technology signifies a major leap beyond the limitations of conventional eco-friendly leathers and is expected to provide a competitive edge in overseas markets.

○ The R&D is led by Joil Industries, a Busan-based company, while the demonstration phase is handled by KIMCO, which supports over 220 local synthetic leather manufacturers and more than 120 automotive interior material producers to foster technological advancement and industrial convergence.

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Thanks to this breakthrough, Joil Industries is expected to expand into various application sectors, including:

• ●Mycelium sheet substrates

• ●Automotive interior components

• ●Premium consumer goods

○ Future plans include joint prototype testing with Hyundai Transys and the use of KIMCO’s testing facilities for developing products. Joint mass production with KIMCO is also in the pipeline.

○ Additionally, the vegan leather products will be showcased at the Adidas Vendor Fair, with Joil aiming to grow its annual revenue from KRW 70 billion to KRW 100 billion, aligned with the expansion of the vegan leather market.

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KIMCO, which co-developed the technology, plans to promote ecosystem-wide participation in support projects once its advanced public testbed infrastructure is completed on-site.

○ The testbed, to be completed by 2027, will include facilities for:

• ●Mycelium cultivation

• ●Vegan leather production

• ●Reliability testing and analytical equipment

These will provide performance evaluation and commercialization support for SMEs and industry players.

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Mayor Park Heong-joon commented:
“This achievement is meaningful in that it contributes to carbon neutrality and the shift toward eco-friendly materials, thereby advancing a circular economy. It also showcases the competitiveness of Busan’s materials industry.”
He added,
“We look forward to seeing this technological development lead to tangible results—such as new industrial partnerships and securing demand channels. The City of Busan will continue to provide strong support to add high value to the local materials industry.”

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Appendix: Project Summary

Project Name:
Biomass-Based Vegan Leather Development and Demonstration Cluster Project

Project Goal:
To secure core technologies and establish a demonstration base for biomass-based vegan leather to lead the emerging low-carbon global materials market.

Project Period:
2024–2028

Total Budget:
KRW 23 billion (National: 14.8B, City: 3.0B, Private: 5.2B)

Project Scope:

• ●Development of new vegan leather materials and products using mushroom mycelium

• ●Cultivation and production technology for mycelium-based vegan leather

• ●Continuous sheet manufacturing using high-performance laminating technology

• ●Establishment of sheet production facilities using fibrous mycelium

• ●Securing product testing infrastructure to promote industry adoption

Lead Organizations:

• ●R&D: Joil Industries

• ●Infrastructure: Korea Institute of Materials and Components Convergence (KIMCO)

Application Areas:

• ●Automotive & lifestyle products: Seats, headliners, pillars, premium goods

• ●Medical & battery materials: Biocompatible composites, secondary battery components