KOREA’s seafood market - trends and opportunities
SEOUL: Seafood consumption in Korea has been continuously increasing, as a result of more health conscious behavior and focus by the consumers. In 2006 consumption reached 4.6 million tons, 48 kg per person. The fishing industry is unable to meet domestic demand, and consequently Korea imports large amounts of fish and fish products from countries around the world. Korea is emerging as an important market for Norwegian seafood in Asia.
Korea is one of the world’s major fishing nations both in production and trade. The fishery industry has an important role in the Korean economy. Total production volume was over 3 million tons in 2006, ranking as the 15th largest production.
However, since the peak of overall fish catches in the mid 1980s, Korea’s fish catches have continued to decrease caused by the resource shortage in coastal areas. Korean fishery industry has therefore declined in size and volume.
Fresh salmon import record
On the other hand, import of fishery products increased to 1.4 million tons valued at US$ 2.8 billion, mainly from China, Russia, Japan, USA, Vietnam and Thailand. Norway is the 10th largest exporter of seafood to Korea. Total Norwegian seafood export to Korea in 2007 reached 15,000 tons, with a value at US$ 61 million. Korea is emerging as an important market for Norwegian seafood in Asia.
Salmon and mackerel are the major fish species imported from Norway. In 2007, Korea imported 11,000 tons of salmon, of which Norway supplied 7,200 tons and Chile 3,700 tons. Particularly, Norwegian fresh salmon recorded an increase of 100% from 1,700 tons in 2006 to 3,400 tons in 2007, Norway is the No.1 supplier for fresh and frozen salmon in Korea. It is expected that fresh salmon will continue to increase its market share, as salmon is gaining more and more reputation for home consumption in Korea.
Most duties on fish abolished
There is an increasing demand for imported seafood. So far, Korean seafood importers have shown interest in developing and exploiting market opportunities in Norway. Norwegian seafood has a very good reputation in Korea related to quality and hygiene standards. This could contribute to further expansion of the seafood export to Korea for new species and products, such as king crab, king snail(=whelk) and cod among others.
A Free Trade Agreement (FTA) between Norway and Korea came into force from September 2006, Korea abolished most of the customs duties on marine products imports, e.g. zero duties/tariffs for fresh salmon, trout and will be gradually reduced to zero for frozen salmon. It greatly eases business opportunities in Korea and contributes to create opportunities for Norwegian seafood exporters.
Business opportunities are more sought in a positive ways, Innovation Norway Korea identified that many of Korea’s challenges are matched by Norwegian competency in seafood industry.
Norwegian seafood pavilion at the Seoul Food&Hotel Exhibition
Innovation Norway Korea is planning to organize the Norwegian national pavilion at “Seoul Food&Hotel Exhibition” (14-17 May 2008) taking place in Seoul, with aims to promote opportunities that exist and to build network in Norway and Korea. We are happy to assist Norwegian seafood exporters at the Seoul Food&Hotel Exhibition for new market opportunities and business interests.
For more information, contact Commercial Councellor Reidar Grevskott at reidar.grevskott@innovationnorway.no