Why is South Korea importing more kimchi than it exports?

South Korea is importing more kimchi mainly due to significantly lower prices from Chinese producers, making it difficult for domestic manufacturers to compete in the local market.

How is climate change affecting South Korean kimchi production?

Climate change is disrupting traditional cabbage farming, a key ingredient for kimchi, leading to increased wholesale prices and making domestic production more costly and less predictable.

What is being done to support traditional Korean kimchi makers?

Initiatives include voucher schemes for restaurants to use Korean kimchi, government agricultural support for cabbage growers, and research into extending kimchi's shelf life to boost exports.

Home / Business and Economy / Kimchi Crisis: South Korea Imports More Than It Exports

Kimchi Crisis: South Korea Imports More Than It Exports

22 Dec

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Summary

South Korea now imports more kimchi than it exports.
Cheaper Chinese kimchi costs half the price of domestic varieties.
Climate change impacts cabbage supply, raising production costs.

Kimchi Crisis: South Korea Imports More Than It Exports

South Korea is grappling with a significant trade deficit in kimchi, importing $159 million worth in the first 10 months of the year, predominantly from China, while exporting $137 million. Local producers are struggling as cheaper Chinese kimchi, priced at roughly $1.15 per kilogram, undercuts domestic versions that average $2.45 per kilogram, leading restaurants to switch suppliers. This economic pressure is compounded by the climate crisis, which has disrupted cabbage farming, a key ingredient, causing wholesale prices to significantly increase.

Traditional kimchi-making, a cherished aspect of Korean culture and an annual preparation ritual known as 'kimjang,' is evolving. With a rise in single-person households, home production has declined, increasing reliance on commercially produced kimchi. However, the industry, largely composed of micro-businesses with fewer than five employees, finds it difficult to compete with China's large-scale production. Many producers have halted expansion plans and fear closure if sales continue to drop.