KorSun International, Inc.

Disease-Free(Sterile) MSP

August, 2012

MSP (0.5~1g /pc)

Existing seed potato

(50~240g/ pc )

1. What is MSP( Micro Seed Potato) ?

We cut the stems of potato and after optimal nutrition to the stems

using our advanced bio-technology in the sterile room and then we

plant the roots from these stems to produce potato seedlings in the

sterile room supplying only minimal nutrition to create small red

bean(0.3g) sized world's most advanced BIO potatoes.

2. 5 (Five ) Merits of MSP

A) Unlimited production - to meet 100% of world seed demand

B) Shortened multiplication period - 8years vs. 1year

C) Lowered multiplication cost - 1/2 of conventional method

D) Reduced distribution cost - 1/50 of current expenses

E) Simplified custom clearance - convenient quarantine inspection

due to disease/soil free seed

3. The Importance of Sterile Bio Seed Potatoes

Seed potatoes' role is essential for high-yielding potato production

which is a nutrition breeding crop. Therefore, the world invests a lot

for research and development to make a superior seed potato.

But in case that seed potatoes are infected by viruses, pathogens

continues to spread through seed potatoes, then contamination

spreads to the fields, potato yields reduce up to 80%. Therefore,

even though experts around the world painstakingly strive to develop

infection-free sterile seed potatoes, but no one has been successful

yet in making mass-producible and commerciogenic seed potato.

We invested a lot for research and development for almost 10 years

and as a result, in 2004 we successfully developed potato blight-

resistant, mass-producible and sterile bio seed potato. Through

experiments at home and abroad, we also proved that mass-

production in the most economical way is available.

4. Features of Our Sterile Bio Seed Potato Production Technology

A state-of-art technology of mass replication production, throughout

the year like a manufactured goods, enables to produce pea

sized(0.5~1g) Micro Seed Potato(MSP) in the same trait of the

mother potato varieties from the basic species of the top level of

the current seed production system.

-MSP Mass-Production Technology

-MSP Commercialization Success of

Proliferation Technology

( Patent No.: 03616525 )

5. Sterile BIO Seed Potato(MSP) Production ( Period: 1Year)

■ MSP Production Process

(Potato Tissue Culture) (MSP in Culture Vessels before Harvest) (Varieties of MSP Harvested)

■ Basic Process of Disease-free Seed Potato Production using MSP(1 year)

(Sprouting-treated MSP

before Sowing)

(The Proliferation

Packaging 45 Days after

Sowing)

(Harvested Seed Potatoes for Farmers

90 Days after Sowing(MSP-1st

Generation)

■ The Basic Process of Current Disease-free Seed Potato Production in Korea &

all over the World(5~6 years)

Production of Basic

Kind( MSP)

Production of Basic

Plant

Original Foundation

Seed Production

Original Seed

Production

Spread Seed

Production(MSP) Supply to Farms

1st Proliferation 2nd Proliferation

3rd Proliferation

4th Proliferation

1 year

1 year

1 year

1 year

1 year

1 year

6. Sterile Bio Seed Potatoes(MSP) Production & Economic Feasibility

● Sterile Seed Potato(MSP) Production Cost per Unit : KRW200(U$0.18)

- Production Cost including Koreans' Labor Cost, KRW200 = Labor Cost 75% + Nutrient Solution

cost 25%

● Production Cost of 40 Seed Potatoes for Food using Sterile Bio Seed Potato(MSP)

planted in a Farm or Field: KRW120(U$0.104)

- KRW3 each = Labor Cost + Cultivation Cost

● 32~40kg of Potato Production from Field using above-mentioned 40 Seed Potatoes for

Food

● Economic Feasibility of Production with MSP that we developed(cheap labor country can

greatly reduce Production Cost.)

- Production Cost of an Adult’s Food for 60 Days: KRW320(U$0.28) = MSP Prod Cost KRW200 + Prod Cost of 40

Seed Potatoes for Food: KRW120

- Production Cost of an Adult's Food for a year: KRW1,920(U$1.68) = 6 X KRW320(U$0.28)

- One Adult's Food for 60 Days: 30Kg(500g/day X 60 days = 30 Kg )

- Land Area for Production of an Adult's Food for 60 Days: 10㎡

- Land Area for Production of an Adult’s Food for a Year: 60㎡

MSP Production Facility Cost: U$85,000(Prod Capacity of 10,000 Adults’

Food for a Year

7. MSP Verification Test for Practicality( Overseas– North Korea )

● DPRK Academy of Agricultural Sciences – MSP Cultivation Test for Practicality Verification

1. Test Overview

-Test Period: March through November, 2003

-Test Purpose: Approach for Potential to solve Food Shortage by securing sterile Seed

Potato using MSP

2. Test Contents

-MSP Proliferation Test: Breed-Daeseo , Area: 2ha, Yield: 30.2t /ha

-MSP 1st Generation Cultivation Test: Breed-Chubeak, Area: 2ha, Yield: 42.5t /ha

3. Test Evaluation

-Praised as a Revolutionary High Technology

4. The Official Signatures of the test-related Persons in charge in South & North for the Test Results

● Related Materials

◇South & North Joint Evaluation Meeting-Oct. 29, 20039 each from South & North)

◇ Test Cultivation in North Korea

8. MSP Practicality Verification Test (Domestic-Rural Development)

● Rural Development –MSP Cultivation Test for Practicality Verification

1. Test Overview

-Test Period: March through November, 2004

-Test Purpose: Technological, Practical & Economical Verification of MSP

2. Test Contents

Treatment

Seeding

Rate(%)

Stem Length(cm )

Q’ty ( Kg/ 10a )

Varieties Cultivation

Method

May 3 May 21 June 14

Chubeak Transplant

of Raised

Seeding

96 4.8 20.2 24.3 2,340

Daeji -ditto- 91 6.7 33.5 57.9 3,270

Soomi -ditto 93 4.8 11.4 23.5 1,320

Notes 1) Rice fields of poor drainage clayey soil was selected for the test cultivation for stress

tests of MSP in rice farming land.

2) Crop was relatively good except Soomi damaged by low temperatures.

● Related Materials

Test Packaging 70 Days after Sowing Harvest Survey 90 Days after Sowing

3. Test Results

Varieties

Seeding

Rate(%)

Stem Length(cm ) Virus (%)

Yield

(Kg/10a )

Sept 22 Oct 12 Sept 22 Oct 12

Chubaek 95 37 63 2.0 7.3 3,135

Daeseo 92 32 55 0.0 2.5 3,705

Daeji 94 27 62 1.0 4.0 3,690

Soomi 84 15 30 0.5 0.5 960

Notes 1) Fields in good soil conditions were selected for the test purpose of high-yielding

2) Very good yields of 3,135 ~ 3,705 ( Average/10a Korea: 2,500Kg, World:1,600Kg )

4. Comparison of Test Results among MSP, MSP-1st Generation & General Seed Potato

98 40~75

Stem Length(cm)

Virus ( %) Yield

Sept 22 Oct 12 Sept 22 Oct 12 (Kg/10a )

MSP 91 37 57 2.0 7.3 3,360

MSP-1st

Gen. 98 47 72 3.0 11.5 4,680

Regular

Seed Potato 82 42 65 40~75 72.5 3,180

Notes 1) Regular Seed Potato is once proliferated in a farm using basic kinds of nutricultured by Gimje Agricultural Technology Center.

2) Very good yields of 4,680Kg/10ha from MSP-1st Gen.(MSP: 3,135~3,705/10ha, Regular Potato: 3,180Kg/10ha)

9. Comprehensive Evaluation of Test Results of MSP (November 8, 2004)

A. Technology

-MSP, produced in sterile and disease-free culture vessels in a culture room secured the best

of cleanliness, was evaluated to have no infectious virus.

-We can keep the basic stems of MSP by the varieties and proliferate them when they are

needed. Because MSP can be produced year round like industrial products, unlimited

expansion of mass production is considered to be possible.

B. Practicality

-Even if we use MSP directly as seed potatoes, we can harvest 3,135 ~ 3,705Kg per 10ha.

But if we use MSP after 1 ~ 2 times multiplication, it will be more practical and economical.

Potato yield could be reduced up to 80% due to virus infection if we use regular potatoes as seed

potatoes. Therefore, every country is trying to make disease-free seed potatoes but It takes 5 ~ 6

years with current technology of seed potato production process and costs very high, which

makes it difficult to do mass-production except 10 advanced countries resulting disease-free

(virus-free) seed potato supply in other 150 countries is insufficient by 90%.

Results, from 10 years enormous R & D investment for low-cost & high-efficiency disease-free

seed potato production and through farmers' test cultivations for verification, was proven for our

MSP to be an alternative to solve seed potato supply shortage in both domestically and globally.

C. Official Evaluation Test Materials

(Harvest Verification on-site by Test Officials) (Test Officials' Comprehensive Assessment Meeting)

■ Signatures of Test Officials on the Comprehensive Evaluation

■ MSP Article( Source: Manufacturer’s website –Apr 14, 2007)

Micro seed potato detail, Type: SELL Category: 2 Delivery Time: N/A

[ Five Merits of MSP ] Unlimited production - to meet 100% of world seed demand Shortened multiplication period - 8years

1year Lowered multiplication cost - 1/2 of conventional method Reduced distribution cost - 1/50 of current

expenses Simplified custom clearance - convenient quarantine inspection due to disease/soil free seed

[ Background of Developing MSP Mass Production Technology ]

Due to complicated method of conventional potato seed production system that required quite a time and cost, around 95%

of potato producers in the world had to be suffered from unavoidable use of virus infected seed, having forced lots of

researchers to find the way of easier and more efficient seed production procedures.

In 1960, Dr. Wang of Taiwan incidentally found a bean sized small tuber in the culture vessel during the course of his tissue

culture experiment and reported the fact to the World Society of Potato Science.

Dr. Hyouk Choung of Korea Research Institute of Bioscience and biotechnology (KRIBB) has developed the micro tuber

mass production technology in 1989 by multiplying the micro tuber four times (four years), which technology was patented

in 31 countries.

The HI-DEA Company was established in Korea during 1995 to undertake the KRIBB’s patent at 2 billion won(U$1.7 million)

that was expanded in 1997 by one of the largest food conglomerates, Miwon Group (Currently DaeSang Group), having

Korea, China, Vietnam’s 250 ha cultivation test farms run.

The Miwon invested some 35 billion won ($30 million) for the commercial operation, but ended up the project in 1999

because of economic failure.

In June 1999, the founder/CEO of HI-DEA Hwang Eui-Choong opended the new corporation, Bio Industry

Development Inc. and developed the MSP that was less costly and unlimitedly producible over the KRIBB’s. In fact,

MSP made it possible for farmers to effectively use after one cycled (one year )multiplication.

[ About MSP ] MSP is not a new potato variety developed by a genetic modification /breeding, but a pest/disease

free seed potato produced from the tissue cultivated plantlets stem with cutting-edged technology in the tissue

culture vessel, having 0.5g to 1 g in weight and a soybean in size. Another name is micro tuber in vitro or artificial

seed potato. Tissue cultivation is also possible for other seed varieties by MSP.

[ Five Merits of MSP ] Unlimited production - to meet 100% of world seed demand Shortened multiplication period -

8years 1year Lowered multiplication cost - 1/2 of conventional method Reduced distribution cost - 1/50 of current

expenses Simplified custom clearance - convenient quarantine inspection due to disease/soil free seed

[ Utilization of MSP ] The most desirable method is to take advantage of the seed potato after one cycled

multiplication by using a PE film mulching in the open field. The multiplication needs to abide by the current

prevailing seed management standard.

[ Ordering of MSP ] MSP can be supplied to anywhere in the world if ordered varieties and quantities just one year

in advance. The price will be negotiable by varieties and quantities to be ordered.

The recommended seeding density is 75,000 tubers per hectare.

Country Harvest Area( Ha ) Production (Ton ) Yield ( Ton / ha )

Russian Federation 2,851,660 36,784,200 12.9

Ukraine 1,453,300 19,102,000 13.1

Poland 569,600 11,791,072 20.7

Germany 274,961 11,643,769 42.3

Netherlands 161,000 7,200,000 44.7

England 139,000 5,635,000 40.5

Iran 200,000 5,240,000 25.0

China 5,000,000 72,041,000 14.4

Spain 89,000 2,502,300 28.1

Italy 71,968 1,837,844 25.5

■ Potato Production by Countries

( Source: FAOSTAT )

( 2007 )

THANK YOU !