FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday,  February  28,  2025

For Coverage:  February  22  ~  28, 2025

The Bank of Korea: "Soaring exchange rate will drive up prices in the second half of the year"
https://www.donga.com/news/Economy/article/all/20250228/131121692/2
Summary:  The Bank of Korea predicts that the sharp rise in the won-dollar exchange rate, driven by domestic political instability and U.S. trade tensions, will impact consumer price inflation in the second half of the year.  The report estimates that a 10% increase in the exchange rate could raise consumer prices by 0.47 percentage points over the next year, with short-term (under three months) and long-term (4–12 months) effects of 0.31 and 1.30 percentage points, respectively.  While energy and food prices showed high volatility, service costs were less affected in the short term but experienced prolonged inflationary pressure, and companies that previously froze prices may adjust them later, extending the inflationary impact.

BBQ expands into 31 states out of 50 in the United States
https://www.yna.co.kr/view/AKR20250226027700030?section=industry/industrial-enterprise
Summary:  Korean chicken franchise Genesis BBQ has opened a store in Utah, expanding to 31 states out of 50 in the United States.  BBQ opened its stores in Tennessee, Nebraska, Arkansas and Indiana last year planning to showcase its unique K-food in the global market through its accumulating experience and know-how.

Pet owners suffer ‘petflation’ amid surging import prices
https://www.koreatimes.co.kr/www/biz/2025/02/126_392992.html
Summary:  According to Statistics Korea, the consumer price index for pet products, including food, toys and grooming supplies, reached 116.8% in 2024, which is a figure that has steadily increased from 100% in 2020, due to the weakening Korean currency.  In these circumstances, a French pet food brand Royal Canin, which is the most popular in the domestic pet food market, raised prices for several products by 4.8% on average on February 24.  However, industry officials pointed out that as the premium pricing strategy is dominant in the domestic pet market, other pet food manufacturers are also likely to consider raising their prices.

Fresh Korean strawberries, with their product quality, are set to dominate the premium market in the U.S. ... The challenge lies in export logics costs
https://www.nongmin.com/article/20250224500660
Summary:  According to recent data released by the U.S. Department of Agriculture (USDA), the production and consumption of berries, including strawberries, have significantly increased in the U.S.  In particular, the demand for premium strawberries, such as organic varieties, has tripled.  In fact, most markets in the U.S. now offer a variety of berries, including blueberries and raspberries, year-round.

The government is pushing for public stockpiling of ‘Diammonium Phosphate’
https://www.nongmin.com/article/20250224500650
Summary:  The government plans to designate compound fertilizer ingredients as economic security items and push for public stockpiling.  On the 21^st, the Public Procurement Service announced the ‘2025 Stockpiling Business Plan’, which includes these details.  According to this report, the compound fertilizer ingredient to be stockpiled by the government is identified as Diammonium Phosphate (DAP).

Bank of Korea slashes 2024 economic growth forecast from 1.9% to 1.5%
https://www.donga.com/news/Economy/article/all/20250226/131105695/2
Summary:  The Bank of Korea has sharply lowered its 2025 economic growth forecast from 1.9% to 1.5%, citing global uncertainties such as Trump's tariff policies.  In response, the central bank cut its benchmark interest rate by 0.25 percentage points to 2.75%, marking the first drop into the 2% range in over two years.  Governor Rhee Chang-yong emphasized the need for further rate cuts and additional fiscal policies, such as a supplementary budget, to mitigate economic downturn pressures.

Local governments and agricultural cooperatives support rice purchase prices – Focus on boosting consumption and processed food exports
https://www.donga.com/news/Economy/article/all/20250225/131102449/2
Summary:  The South Korean government and local agricultural cooperatives have implemented measures to stabilize rice prices, including purchasing surplus production and ensuring fair purchase prices.  To boost domestic consumption, initiatives like the "1,000-won breakfast" program for university students and efforts to expand rice-based processed food exports are being promoted.  Additionally, structural reforms in the rice industry are planned, such as stricter grading standards and support for organic farming, to address oversupply and enhance market functionality.

Import of feed containing ‘US ruminant ingredients’ allowed… Non-tariff barriers ‘shaken’
https://www.nongmin.com/article/20250224500642
Summary:  The South Korean government has lifted its ban on pet food containing ruminant animal protein, which was previously restricted due to concerns over BSE (mad cow disease).  This decision follows pressure from the U.S., which had identified the restriction as a trade barrier, raising concerns that other agricultural trade protections may also be weakened.  While U.S. officials welcomed the change, South Korea’s agricultural sector is worried about potential risks and the broader impact on trade negotiations.

Korea Food Safety Information Service introduces ‘Food QR’ at ‘GS1 Global Forum 2025’
http://www.foodnews.co.kr/news/articleView.html?idxno=112047
Summary:  The Korea Food Safety Information Service (KFSIS) introduced the food information verification service, Food QR, at the ‘GS1 Global Forum 2025’ held in Amsterdam.  ‘Food QR’ is a barrier-free service that allows users to check food safety information, health information including nutritional info, and living info including recipes in real time by scanning a QR code on food packaging using a mobile phone.  KFSIS said that it was invited to this forum in recognition of its achievement in improving the accessibility of food safety information by introducing the digital link technology to the food safety sector.

Due to climate change, apples are ripening faster… New sales strategies needed
https://www.nongmin.com/article/20250221500731
Summary:  As apples ripen faster due to climate change, there are calls to differentiate sales strategies for consumers from the traditional ones.  There are also suggestions that new cultivation techniques to cope with extreme weather patterns should be developed and distributed.  The Korea Society for Horticultural Science and Herbal Science of the Rural Development Administration held a forum on February 20 at the aT Center to explore solutions for addressing climate change and stabilizing the supply and demand of horticultural crops.

Considering expanding U.S. beef imports as a negotiation strategy
https://www.nongmin.com/article/20250221500556
Summary:  The South Korean government is reviewing non-tariff barriers as the U.S. considers them in trade negotiations, with American beef import restrictions being a key issue.  Authorities are assessing regulations that could be potential negotiation points but have not committed to any specific changes.  While the Ministry of Agriculture insists that quarantine procedures are based on science, officials emphasize a strategic approach to trade talks, monitoring uncertainties while prioritizing national interests.

U.S. origin regulations could harm small and medium agri-food businesses
https://www.nongmin.com/article/20250221500723
Summary:  The U.S. may strengthen origin regulations on imported goods, which could negatively impact small and medium-sized Korean agri-food companies that rely on foreign raw materials.  Experts warn that restrictions on Chinese-origin ingredients could create trade barriers, increasing compliance costs and limiting exports of key K-Food products like ramen.  To mitigate these risks, industry leaders call for expanded financial support, such as subsidies for safety testing and packaging costs, to help smaller exporters adapt to stricter U.S. trade policies.

U.S. tariff-free potato imports could lower domestic wholesale prices by 8.4%
https://www.nongmin.com/article/20250221500743
Summary:  If U.S. potatoes are imported duty-free, domestic wholesale prices in South Korea could drop by 8.4% by 2039, with farm income falling by 6.1% and total production value decreasing by 9.0%.  Researchers predict that U.S. potato imports will rise significantly, especially if South Korea allows shipments from more states beyond the currently approved regions.  Experts warn that if U.S. import conditions are eased under a potential second Trump administration, the increased influx of American potatoes could heavily impact the domestic market.

MFDS doubles inspections of overseas direct purchase food in 2025
https://www.foodnews.co.kr/news/articleView.html?idxno=112034
Summary:  Korea’s Ministry of Food Drug Safety plans to implement safety management measures for overseas direct purchase food in 2025 to prevent consumer damage as the number of imported foods through overseas direct purchase is gradually increasing.  According to the measures, the inspection volume of overseas direct purchase food with high risk of harm or high consumer interest will be doubled from 3,400 cases last year to 6,000 this year, and in order to block the import of harmful foods into Korea, the ministry will work with related organizations to continuously inspect and proactively find suspicious products containing harmful ingredients.  Therefore, the ministry plans to protect consumers’ right to know and actively encourage smart consumption by disclosing confirmed information to consumers in advance.

The import prices of groceries have risen significantly compared to a year ago
https://www.donga.com/news/Economy/article/all/20250221/131076070/1
Summary:  South Korea's food import prices have risen by over 10% from last year, marking record highs due to the prolonged high exchange rate.  Notable increases include coffee, nuts, beef, cheese, chicken, and frozen vegetables.  As food prices climb, consumer inflation pressure is expected to persist, and global banks predict inflation will remain above the 2% target through the third quarter of the year, despite overall economic slowdown.

Nonghyup says, “We will increase exports of Korean agricultural products to Japan”
https://www.nongmin.com/article/20250219500618
Summary:  The National Agricultural Cooperative Federation (Nonghyup) is working with Japan’s agricultural cooperatives to expand exports of Korean agricultural and food products.  Vice Chairman Ji Jun-seop visited a direct sales store in Kanagawa Prefecture, a popular location attracting 500,000 visitors annually, to assess export progress and discuss collaboration.  The store sells various Korean products, including kimchi and samgyetang.  Both sides emphasized strengthening ties to promote Korean food culture, with plans to enhance product quality and boost exports to Japanese consumers.