FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday,  February  14,  2025

For Coverage:  February 7  ~ 14, 2025

Import prices of fresh food increase by 10 to 15 percent due to high exchange rate
https://www.yna.co.kr/view/AKR20250207164200030?section=economy/all&site=major_news02
Summary:  Due to the high exchange rate driven by the political situation in Korea and the unfolding U.S.-China tariff war, import prices of agricultural, livestock and fishery products at hypermarkets have increased by 10 to 15%.  Prices of Norwegian mackerel, Canadian live lobsters, and beef from the United States and Australia, which are Korea’s main imports, have already risen by more than 10% last month compared to the same period last year.  Hypermarkets are seeking various solutions, such as diversifying their sources of imports and securing domestic substitutes, to minimize the price shock of imported fresh food.

The influx of cheap imported fruits is intensifying
https://www.nongmin.com/article/20250212500682
Summary:  A large influx of imported fruits, including U.S. oranges, is expected in March due to favorable growing conditions in California and government policies such as reduced tariffs.  Major retailers are preparing for increased sales of imported fruits by planning discount events, while the Korean government has expanded tariff quotas, leading to an anticipated rise in fruit imports by 6.8% this year.  Domestic fruit producers are deeply concerned that the surge in cheap imports, including premium mandarin-like varieties from the U.S., could significantly hurt the local agricultural industry.

"Quota tariffs" boost U.S. mandarin imports… Duty-free starting next year
https://www.nongmin.com/article/20250207500820
Summary:  The import of U.S. mandarins has significantly increased due to the quota tariffs imposed under the Korea-U.S. Free Trade Agreement (FTA), with the tariff set to be eliminated next year.  As U.S. mandarin production grows and consumption increases in the U.S., mandarins are becoming a stronger competitor in the Korean market, particularly as they have similar characteristics to domestically produced mandarins.  This raises concerns for the domestic citrus industry, particularly in Jeju, where farmers worry that increasing imports of U.S. mandarins will negatively impact local production and prices.

Nonalcoholic beers gaining momentum in the global market
https://www.koreatimes.co.kr/www/tech/2025/02/419_392070.html 
Summary:  Nonalcoholic beverages are increasingly becoming a new trend among drinkers in the global food and beverage market.  The trend reflects the shift in the drinking culture of young consumers, showing their preferences for healthier beverages.  Major beer companies, including Lotte Chilsung Beverage and Oriental Brewery, in Korea have begun introducing nonalcoholic products to cater to this trend.  In the United States, sales of nonalcoholic beer nearly tripled in 2023 compared to 2019, growing 35% year-on-year, while the overall beer market showed just an 1% increase. 

Soaring coffee bean costs push up budget coffee prices
https://www.koreatimes.co.kr/www/tech/2025/02/419_391911.html 
Summary:  Budget coffee franchises in Korea have begun raising their prices as the prices of globally popular coffee beans started to rise rapidly at the end of last year.  Compose Coffee, one of the largest budget coffee franchises in Korea, will raise its price on the 13^th, while other medium- to premium-quality coffee franchises like Starbucks, Paul Bassett and Hollys have already raised their prices in recent months.  Global coffee bean prices hiked after the world’s key coffee bean producers, such as Brazil’s Arabica and India’s robusta, suffered extreme climate conditions last year. 

Increase in foreign population leads to growth in agricultural production
https://www.nongmin.com/article/20250210500616
Summary:  An increase in the foreign population residing in South Korea positively impacts the regional economy, especially in sectors like agriculture, forestry, fisheries, and manufacturing, leading to growth in regional GDP.  A study by Kim Do-won from the Immigration Policy Research Institute found that a 1% rise in foreign population increases agricultural production by 1.33%, while manufacturing and services grow by 0.88% and 0.36%, respectively.  However, the impact on local government finances is mixed, as while foreign population growth leads to reduced local revenues and expenditures, it also lessens financial burdens on local governments.

Nongshim’s ‘Shin Ramyun Toomba’ to be sold at Walmart this year
http://www.foodnews.co.kr/news/articleView.html?idxno=111924
Summary:  With the growing interest in Korean instant noodles (ramyun), Nongshim is expanding its overseas market by selecting ‘Shin Ramyun Toomba’ as its strategic product for targeting the global market.  Toomba, which began local production last November and is currently on sale in Asian markets in the United States, is scheduled to be on shelves at Walmart in June and to be launched in a square-shaped container with high local consumers’ preferences in March.  In addition, Nongshim plans to introduce Toomba to the global market by launching it at Woolworths in Australia and CVS Seven-Eleven in Japan.

Korea's growth rate for this year revised down to 1.6%, a 0.4%p decrease in three months
https://n.news.naver.com/mnews/article/014/0005306944
Summary:  The Korea Development Institute (KDI) has revised down its growth forecast for South Korea’s economy to 1.6% for this year, a 0.4% decrease from previous projections.  This downgrade reflects weaker domestic consumption, a slowdown in exports, and a dampened economic outlook due to uncertainties around U.S. trade policies and domestic political instability.  KDI also cautioned against aggressive fiscal stimulus, emphasizing that the biggest risk to the economy remains the impact of U.S. trade policies, particularly tariffs.