KOREAs Marine Industry - Market and Opportunities
SEOUL: Korea is today the sixth largest aquaculture nation in the world, and ranks as no. 13 as a fisheries nation. However, much of its marine industry is using outdated technologies, and the industry is under threat from low efficiency due to fragmented and small production units, disease and environmental problems.
Total aquaculture production in Korea was 1.4 million tons in 2007, accounting for 42 per cent of total fisheries production. The major species are seaweed, shellfish and finfish. Seaweed and shellfish are the most important aquatic food industries in Korea in terms of aquaculture production volume, contributing more than 90 per cent of total aquaculture production.
Marine finfish farming gaining attention
Marine finfish – major species are flounder, rockfish, seabream and seabass – is produced in smaller volumes, contributing only approximately 7 per cent. However, marine finfish farming is gaining attention from government and industry, and with growing fish consumption becoming an important part of the Korean aquaculture industry.
Korean seafood consumption among the world’s highest
Seafood consumption is increasing rapidly as a result of more health conscious focus and consumption behavior. Already today, Korean annual seafood consumption is among the highest in the world at 48 kg per person. This happens at a time when coastal catches have been reduced significantly over the past decade due to overfishing and territorial treaties being signed with Japan and China.
Taking into consideration problems within the aquaculture industry that has in some cases lead to stagnation or reduction in the overall output for specific seafood and increased import of cheap seafood products particularly from China, the Korean marine industry is faced with many threats and challenges, as well as opportunities.
Import of fishery products are increasing due to increased domestic consumption. Korea has in the past imported seafood from about a 100 countries, the major suppliers being China, Russia, USA, Japan, Vietnam, and Thailand.
A big boost for Norwegian salmon
Norway has also emerged as an important country for supply recently. Norwegian seafood exports to Korea have grown strongly, and total Norwegian seafood export to Korea in 2007 reached to 15,000 ton, valued at US$ 61 million.
Salmon and Mackerel are the major fish species imported from Norway. In 2007, Korea imported 11,000 tons salmon, of which Norway supplied 7,200 tons. Particularly Norwegian fresh salmon recorded an increase of 100% to 3,400 tons in 2007, up from 1,700 tons in 2006. Norway is the prime supplier for fresh and frozen salmon in Korea. It is expected that fresh salmon will see further increases in its market share, as salmon is gaining more and more reputation for home consumption in Korea.
King crab increasingly popular
Very recently, king crab is receiving popularity by Korean consumers. Norwegian king crab has attracted attention with great potential and has opportunities for supply to the Korean market as domestic consumption has shown a tremendous demand. The Korean market for king crab is large, and Korean importers are looking for Norwegian king crab suppliers.
Most duties on fish imports abolished
There is an MOU agreement between the Norwegian Ministry of Fisheries and Coastal Affairs and the Korean Ministry of Maritime and Fisheries. The MOU regulates several issues, e.g. fisheries cooperation in R&D activities that develops sustainable development of the fisheries sector.
A Free Trade Agreement (FTA) was signed between two countries in 2005. Upon commencement on September 2006, Korea abolished most custom duties on marine products imports.
The MOU agreement and FTA will improve business opportunities for Norwegian suppliers and exporters. Particularly, Norwegian seafood competitiveness increases with a price advantage that could increase their market share in Korea.
Market entry
A key to success in the Korean market is to establish cooperation and relationship building with the right Korean partners that have business experience and are well connected in the industry. Korean business practices must be understood; for example, what is the market trend, how products are distributed and sold in the local market. It is important to visit the market and to assess the specific requirements of Korean consumers.
Innovation Norway Korea has worked with, and for, several Norwegian companies and government institutions to develop activities and opportunities for Norwegian business interest in the marine sector, particularly with Eksportutvalget for Fisk (EFF) in marketing activities to increase the interest of Norwegian seafood in Korea for the past 10 years.
Innovation Norway Korea assists in developing and searching for new market opportunities in Korea for Norwegian companies and organization.
If you would like more information, please contact:
Reidar Grevskott, Commercial Counsellor
Innovation Norway Korea
Tel.: +82-2-767-2650
Fax.: +82-2-767-2701
E-mail: reidar.grevskott@innovationnorway.no
Kilwon Lee, Senior Market Adviser
Innovation Norway Korea
Tel.: +82-2-767-2651
Fax.: +82-2-767-2701
E-mail: kilwon.lee@innovationnorway.no