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.

Efforts are underway to support the domestic industry. The Kimchi Association of Korea has introduced a voucher scheme to encourage restaurants to use Korean-made kimchi and is petitioning for increased scrutiny of import prices. The South Korean agriculture ministry plans to strengthen both domestic production and export foundations through voluntary labeling, agricultural support for growers, and research into extending kimchi's shelf life. Despite these challenges, producers emphasize the unique, irreplicable taste of Korean kimchi as its strongest asset.