FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday,  February 7,  2025

For Coverage:  January  31 ~  February 7, 2025

K-food exports face dark clouds... Rising agricultural and livestock raw material prices add to the challenges
https://www.nongmin.com/article/20250205500564
Summary:  The U.S. has delayed its 25% tariff on Canada and Mexico for 30 days after both countries agreed to cooperate on border security and drug control.  However, concerns remain that this strategy could be applied to South Korea as well, potentially using high tariffs to demand increased imports of U.S. energy and agricultural products.  The ongoing U.S.-China trade war and global economic downturn are also seen as risks to the Korean agricultural sector, particularly in K-Food exports, with increased tariffs and inflationary pressures potentially harming the industry.

GMO foods must be labeled regardless of the presence of residual DNA or proteins
http://www.foodnews.co.kr/news/articleView.html?idxno=111823
Summary:  Democratic Party lawmaker Yoon Jun-byeong proposed amendments to the Food Sanitation Act and the Health Functional Foods Act to require mandatory labeling of GMO foods (including health supplements) regardless of the presence of residual genetically modified DNA or proteins.  Current regulations only mandate labeling for GMO foods that contain detectable modified DNA or proteins after manufacturing or processing, leading to gaps in consumer information.  The proposed changes aim to ensure full transparency, introducing a "complete GMO labeling system" and holding manufacturers accountable for clear labeling of both GMO and Non-GMO foods.

The representative food labeling policy led by the government that failed...
http://www.foodnews.co.kr/news/articleView.html?idxno=111821
Summary:  A new food policy for 2025 was announced, introducing QR code labeling and regulations for customized health supplements, including ones for hangover relief.  However, the policy's effectiveness depends on communication with businesses, as the government’s ideal system can only be implemented if business owners believe it is viable.  A failed example is the change from "expiration date" to "consumption date," which, while initially beneficial for consumers and businesses, proved ineffective as companies continued applying the old expiration dates, rendering the policy useless.

Price doubles... Government to directly import Chinese radishes this month
https://www.hankyung.com/article/202502066836i
Summary:  The South Korean government is set to directly import Chinese radishes this month to address soaring prices.  The Ministry of Agriculture, Food and Rural Affairs (MAFRA) will order the radishes from importers, who will then supply them to the Korea Agro-Fisheries & Food Trade Corporation (aT) for distribution in wholesale markets.  This move follows the direct import of cabbage and comes as radish prices have risen sharply, with retail prices increasing nearly 87% compared to last year.

In a laying hen farm in Jincheon, avian influenza (AI) antigen was detected… It would be the 33^rd confirmed case if confirmed 
https://www.nongmin.com/article/20250205500134
Summary:  Chungbuk Jincheon laying hen farm has detected H5 avian influenza (AI) antigen.  This comes just four days after the confirmation of the outbreak at a breeder farm in Hampyeong, Jeonnam.  The Animal and Plant Quarantine Agency immediately began detailed testing, and the determination of whether it is highly pathogenic will be revealed within 1 to 3 days.

Consumer prices for agricultural and livestock products, processed foods, and dining-out services increased in January
http://www.foodnews.co.kr/news/articleView.html?idxno=111804
Summary:  According to data on the consumer price in January released by Statistics Korea, agricultural and livestock products rose by 1.8% (agricultural products 0.6%, livestock 3.7%) and fishery products, processed foods, and dining-out services increased by 2.6%, 2.7%, and 2.9%, respectively, compared to the same month last year.  In this regard, the Ministry of Agriculture, Food and Rural Affairs (MAFRA) said that recent abnormal weather conditions, a decrease in cultivation area, and high exchange rates are considered as the main causes behind the price rise.  MAFRA also plans to strengthen crop monitoring, flexibly release government stockpiles, and provide discounts on products that have soared in price to alleviate consumers’ concerns about proper supply.

‘Codex Committee on Food Additives’ to be held in Seoul
http://www.foodnews.co.kr/news/articleView.html?idxno=111788
‘The 55^th Session of the Codex Committee on Food Additives (CCFA55)’ of the Codex Alimentarius Commission (CAC) is scheduled to take place in Seoul, Korea from March 24 to 28, 2025.  In this session, the General Standard on Food Additives (GSFA) will be discussed, followed by the endorsement and alignment of the provisions to be dealt with.  The Commission (CAC), hosted by FAO and WHO, is an international body that sets food standards to protect consumer health and promote fair practices in food trade.

Food manufacturers increased their use of domestic agricultural products in 2023, reaching 6 million tons, a 0.5% increase from the previous year
http://www.foodnews.co.kr/news/articleView.html?idxno=111798
Summary:  The use of domestically sourced agricultural products by Korean food manufacturers has been steadily increasing, reaching 6 million tons in 2023, a 0.5% rise from the previous year.  According to a report by the Ministry of Agriculture, Food and Rural Affairs (MAFRA) and the Korea Agro-Fisheries & Food Trade Corporation, domestic raw materials accounted for 31.9% of the 18.81 million tons of agricultural, livestock, and fishery raw materials used in food production.  The primary reasons for using domestic ingredients include easy procurement (49.8%), the need for fresh ingredients (38.8%), and consumer preference for domestic products, while cost competitiveness (79.4%) remains the main reason for choosing imported materials.

The transaction amount of the online wholesale market for agricultural and marine products surpassed 100 billion won in just 23 days
https://www.hankyung.com/article/202502041429i
Summary:  In the first month of the new year, the transaction amount of the online wholesale market for agricultural and marine products exceeded 100 billion won.  According to the Ministry of Agriculture, Food and Rural Affairs on the 4^th, the transaction amount for agricultural and marine products in the online wholesale market reached 116.4 billion won as of the 23^rd of last month.  This represents 18 times increase compared to the same period last year (6.5 billion won), and a 20.6% average increase in transaction volume compared to December of last year. 

SPC Group to build Paris Baguette factory in Texas this summer
http://www.foodnews.co.kr/news/articleView.html?idxno=111768
Summary:  SPC Group, the owner of bakery chain Paris Baguette, will invest $160 million to construct a plant in Texas.  The construction will begin this summer and is scheduled to be finished by the end of 2027.  With the approval for up to $14 million in financial support from local governments, Paris Baguette will be able to supply 500 million products a year on a 150,000 square meters (37 acres) factory site.  SPC currently operates 198 Paris Baguette stores in the United States and 11 stores in Canada, as of January 2025.

Rice consumption is at half the level it was 30 years ago
https://www.hankyung.com/article/2025020382815
Summary:  A forecast has been made that rice consumption among Koreans will continue to decline, with the amount of rice consumed for food expected to drop by 15% over the next 10 years.  The Korea Rural Economic Institute (KREI) stated in its ‘Agricultural Outlook 2025’ report on the 3^rd that the amount of rice consumed for food is expected to decrease annually, with 2.73 million tons this year, 2.69 million tons next year, 2.53 million tons in 2023, and 2.33 million tons in 2023.

Hy’s fermented milk product ‘Will’ enters into H Mart in the U.S.
http://www.foodnews.co.kr/news/articleView.html?idxno=111771
Summary:  Hy’s health fermented milk ‘Helicobacter Project Will’ will be on shelves at H Mart, the largest Asian grocery store chain in North America.  Will, which contains the hy patent lactic acid bacteria HP7, has annual sales of 330 billion won, and its cumulative sales has exceeded 6.3 trillion won so far.  Hy plans to increase the number of local outlet stores starting with 20 stores in the western United States and will also enter the Southeast Asian market such as Taiwan and Thailand this year.

The government has opened the door for rice milling plants (RPCs) to process government rice stock
https://www.nongmin.com/article/20250131500509
Summary:  The government is easing entry regulations for rice milling plants (RPCs) in the government-controlled rice milling market, which has been dominated by a few businesses.  The Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced that it would relax entry regulations for new operators like RPCs when signing contracts for processing government-managed rice in 2024.  This policy aims to increase competition and improve the system, as some existing mills have faced issues with facility aging and quality degradation, prompting the need for new entrants to the market.

The growth of powdered rice has slowed down, facing challenges related to productivity and price
https://www.nongmin.com/article/20250131500585
Summary:  The growth of powdered rice production and consumption has slowed down in the past year, leading the government to lower its production targets.  Despite efforts to promote powdered rice as a substitute for imported wheat, challenges like poor harvests, weak demand, and production difficulties have hindered the sector.  The government has revised its policies to focus on improving production capacity, developing new rice varieties, and stabilizing demand, with a plan to set future production goals based on productivity and market needs.

Snow hits during Lunar New Year holiday… Damage to livestock facilities and more
https://www.nongmin.com/article/20250131500550
Summary:  A heavy snowstorm during the Lunar New Year holiday caused significant damage across the country, including collapsed livestock facilities and greenhouses, with livestock casualties reported.  Fortunately, there were no human injuries, but farmers are in a state of distress due to the destruction.  The Ministry of Agriculture, Food and Rural Affairs (MAFRA) has reported damages to 51 greenhouses and 33 livestock barns, with the majority of the destruction occurring in South Chungcheong and North Jeolla provinces.

The direction of 2025 food industry promotion policy... Fostering new industries in food tech and green bio
http://www.foodnews.co.kr/news/articleView.html?idxno=111759
Summary:  Since the enactment of the Food Industry Promotion Act in 2007, South Korea’s food industry has grown rapidly, with its scale reaching 725 trillion won in 2022, nearly four times the size in 2008.  The global K-food craze, driven by the success of K-pop, dramas, and films, has positioned Korean food as a key cultural export, with exports exceeding $10 billion for the first time last year.  In 2025, the government plans to aggressively promote food industry policies, aiming to enhance the industry's value and foster collaboration between farmers and food companies to boost agricultural growth.

The large supermarkets are responding to exchange rate fluctuations by diversifying imports, such as Canadian beef 
https://www.donga.com/news/Economy/article/all/20250130/130942647/2
Summary:  With the high won-dollar exchange rate continuing, large supermarkets are focusing on mitigating exchange rate shocks by diversifying the countries from which they import fresh produce.  According to the retail industry on the 30^th, Lotte Mart recently offered a 40% discount on Canadian beef short ribs and Chuck eye roll for L-point members, selling them for around 2,000 won per 100g.  Emart is strengthening the sale of domestic beef (Hanwoo) and pork, which have lower market prices, instead of imported livestock products.

The Agricultural Trade Index rises for two consecutive years… But the feel on the ground is ‘meh’ 
https://www.nongmin.com/article/20250124501052
Summary:  The Agricultural Trade Terms Index, which reflects farm profitability, improved for two consecutive years.  However, there are analyses suggesting that the actual farming conditions on the ground remain bleak.  According to the ‘2024 Agricultural Sales and Purchase Price Survey’ released by the Statistics Korea on the 23^rd, the agricultural trade terms index last year was recorded at 96.3%, a 6.8% increase from the previous year.  The Agricultural Trade Terms Index, which dropped to 89.6% in 2022, rebounded to 90.2% in 2023, making an increase for two consecutive years.