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February 2- 15, 2024
2024.02.20
FAS/Seoul Monitoring of Media Reporting on Agricultural Issues
Today's Date: Friday 16, 2024
For Coverage: February 2 ~ 15, 2024
The Increase in Profits CJ was
Hoping For Its Food Business
http://www.foodnews.co.kr/news/articleView.html?idxno=106753
Summary: CJ CheilJedang¡¯s food business reached sales of 11.2644 trillion
won last year (1.4%+) and an operating profit of 654.6 billion won (4.9%+) due
to its strategic distribution, overseas business sales surpassing its domestic
sales and the increased sales in their primary products and newly released
products. Although CJ¡¯s operating profits decreased due to the burden of
rising raw sugar prices, the sales of their high-margin products, specifically
specialty amino acids, were exceptional. In 2024, CJ plans on expanding
further into the North American market with Global Strategic Products (GSP) and
K-Street Foods while entering the halal market of Northern Europe and Southeast
Asia. Within the domestic market, they will continue to invest in their
highest profit products while introducing new differentiated ones to achieve
qualitative growth in all markets.
Korea's Continuous Investment in Smart Farm Technology
https://www.koreatimes.co.kr/www/tech/2024/02/129_368631.html
Summary: The Korean government in conjunction with KOTRA, will be
establishing four new offices to show their support of the exportation of smart
farm technology in Kuwait, Kazakhstan, Azerbaijan and Australia. These
locations were selected based on the demand for local smart farm support
centers and the project orders that Korean smart farms received. The
expansion of smart farm offices will aid in the process of not only promoting
smart farming in overseas countries but also present a solution to the
country's agricultural sector which is currently suffering from the diminished
workforce and unpredictable weather conditions resulting from climate change.
Whiskey Imports on the Rise
https://www.koreaherald.com/view.php?ud=20240208050029&ACE_SEARCH=1
Summary: With the consistent rise in demand for affordable whiskey, South
Korean whiskey providers have been seeking new import markets. They are
currently in the market for lesser-known whiskey-producing countries such as
Australia or Taiwan, rather than major whiskey producers from the UK, the US
and Japan where their products are more expensive and less available.
South Korea is planning on importing more non-major whiskey-providing
countries, making way for more diverse options to local customers.
AliExpress is Growing as a Threat
https://koreajoongangdaily.joins.com/news/2024-02-09/business/industry/NEWS-IN-FOCUS-AliExpress-clinches-Korean-market/1977588
Summary: AliExpress has dedicated an entire segment called ¡°K-venue,¡±
specifically for Korean items with zero sales fee, which has grown in
popularity amongst LG Household & Health Care and Aekyung Industrial.
With China taking hold as Korea's top overseas direct purchasing market,
domestic e-commerce firms such as Naver Shopping and Coupang are concerned with
a potential decline among local sellers, as it could negatively impact the
sales and transaction volumes of their open market platforms. As of January,
AliExpress has attracted more than 20 companies such as Samdasoo and Lotte
Chilsung with its exemptions from listings and sales commissions, further
making their platform competitive.
Less Burden on Apples and Pears
http://www.foodnews.co.kr/news/articleView.html?idxno=106735
Summary: The Ministry of Agriculture, Food and Rural Affairs and the
Ministry of Oceans and Fisheries supplied a total of 256,000 tons of 16 crucial
products purchased during the Lunar New Year holiday through the use of the
government's stockpiles and contracted cultivation supplies. Despite
inflation, they were able to maintain the average price of Lunar New Year
products such as cabbage, pears and apples, 3.2% lower than last year. To
further alleviate the burden of purchasing agricultural products, they
increased their budget by three times, totaling approximately 94 billion won to
provide the option to purchase them at less than half the price at local
supermarkets and a discount of 30% through mobile gift certificates. They
plan on continuing to offer more promotions and discount events to maintain the
lower price of agricultural products such as seafood even after the Lunar New
Year holiday.
Surging Grocery Prices Escalate Shopping Costs Ahead of Lunar New Year
https://www.koreatimes.co.kr/www/biz/2024/02/602_368265.html
Summary: The Korean government announced that consumer prices rose 2.8%
in January 2024 compared to the same month in 2023, the first time in six
months that inflation fell to the 2% range. However, consumers in Korea
are not feeling a discernible difference in the prices of goods compared to a
year ago. The fresh food index surged 14.4% compared to last January and
prices of agricultural products marked 15.4% range growth for two consecutive
months. Fruit prices notably showed a 28.1% increase month-on-month,
which is the most significant rise since fruit prices soared about 31.9% in
January 2011. Additionally, the inflation rate for dining out in January
also reached 4.3%, 1.5 times higher than the general average. A finance
ministry official said that the government will continue to its efforts to
stabilize the prices of consumer goods as a way to ease the financial strain on
consumers, providing discount services for agricultural, livestock, and fishery
products as the Lunar New Year holiday approaches.
A Major Hit in Japan - Pulmuone's Tofu Bar
http://www.foodnews.co.kr/news/articleView.html?idxno=106705
Summary: Pulmuone sold 58
million units of their completely plant-based protein product, a Tofu Bar, in
Japan. Originally launched in November 2020, the sales of the Tofu Bar
increased by 3.4 times within the past two years, selling an average of 80,000
units in over 30,000 convenience stores daily. In order to meet the
constant demand, Pulmuone has expanded its local production lines and plans to
increase its monthly production capacity to 3 million units by March.
Exports of Korean Sauces and Condiments Hit a Record High
http://news.heraldcorp.com/view.php?ud=20240206000465
Summary: Due to the growing popularity of Korean food and cultural
content, red pepper paste called "gochujang", soy sauce and many
other seasonings reached shipments amounting to $384 million in 2023, a 6.2%
increase on-year. South Korea exported around 131,800 tons of seasonings,
with sauces amounting to the largest share - $241 million. The United
States was the primary exported market totaling 21.8 percent, followed by China
and Japan.
Increased Exports of a ¡®Halal¡¯ Korean Rice Beverage
https://www.foodnews.co.kr/news/articleView.html?idxno=106683
Summary: Birak Sikhye is a
traditional Korean rice beverage brand launched by Paldo in 1993, allowing the
easy enjoyment of a rather lengthy manufacturing process that mainly utilizes
domestic malt and gluten-free rice. Paldo received a 'halal'
certification from the Indonesian Halal Agency (BPJPH) for five of its
beverages, including birak sikhye. Currently, Paldo has increased the
convenience of the product by removing the rice grains from the drink and
localized its design to be available in all types of markets in Indonesia. They
also plan on expanding their halal-certified items and obtaining additional
halal-certifications for their already existing ones for further expansion into
the Halal market.
Korean
Dietary Supplements Makers Eye Chinese Market
https://www.koreaherald.com/view.php?ud=20240204000156
Summary: Korean dietary supplement manufacturers are accelerating their
entries into the growing Chinese market. According to a report released
by the Korea Trade-Investment Promotion Agency, the Chinese dietary supplements
market grew 3 percent year-on-year to reach 73 trillion Korean won ($54.5
billion) in 2022. Korea Ginseng Corp. (KGC), the country¡¯s leading
ginseng manufacturer, recorded sales of 75.2 billion KRW ($56 million) in the
Chinese market in 2021 and 90.7 billion KRW ($67 million) in 2022. A KGC
official said, ¡°the Chinese market accounts for the largest proportion of the
company¡¯s overseas sales. We will continue to develop and introduce new
dietary supplements to expand its market share in China.¡± In addition,
Daesang Wellife, a dietary supplements arm of Korean food giant Daesang Group,
is also increasing efforts to make a foray into the Chinese market, with its
plan to establish a joint venture and build a dietary supplements manufacturing
facility in China this year.
A Rising Whiskey Consumption Trend in Korea¡¦ ¡°Highball¡±
https://www.koreatimes.co.kr/www/tech/2024/01/129_367908.html
Summary: Regardless of age and generation, highball (a mixed alcoholic
drink) has become a mega-hit in Korea since last year. On the back of the
highball¡¯s rise, whiskey sales have soared off the charts. According to
government data, Korea¡¯s imports of whiskey-based liquors such as scotch,
bourbon and rye amounted to 30,586 tons, a 13.1% increase year-on-year.
Many highball drinkers consume affordable whiskeys mixed with tonic water,
flavored soda or other savory additions. Imported whiskey sales in 2023
accounted for $259 million, a 2.7% decrease, thus increasing the market share
of low- and medium-priced whiskeys. On the other hand, soaring whiskey
consumption has also reduced the consumption of wine. Wine imports last
year amounted to 56,000 tons, a 20.4% decrease compared to the previous
year. Wines were increasingly sought among people who drank at home
during the pandemic but the change of disease control regulations and social
sentiment brought the new trend.
Korea to Nurture 100 Michelin-starred Korean Restaurants Abroad by 2027
https://www.koreatimes.co.kr/www/tech/2024/02/129_368126.html
Summary: Minister of Agriculture, Food and Rural Affairs, Song Mi-ryung,
announced that the ministry plans on expanding the number of Korean restaurants
overseas to 15,000 while cultivating specific restaurants to be reputably known
via the Michelin Guide on a global scale. Their initiative also includes
updating South Korea's food guidebook with detailed information and tips to eat
or pair them with Korean traditional alcoholic beverages. The ministry
seeks to popularize Korean terms related to national foods and organize global
food conferences to promote the Korean food industry even further.
Mom's Touch Intensely Intervenes its Affiliates with its First Beef
Burger
https://www.koreatimes.co.kr/www/tech/2024/02/129_368118.html
Summary: Mom's Touch, a chicken burger chain, has attempted to increase
its competitiveness by expanding its menu offering through the introduction of
beef burgers. To fully support this decision, Mom's Touch has financially
supported about 500 affiliate stores for the necessary equipment required to
prepare the beef burgers. With this, it has systemized its customer
management under a partnership and implemented a hygiene rating system from the
Ministry of Food and Drug Safety. Their efforts have led to fewer
administrative measures, sales 30% higher than other franchises and overall
greater profitability within the fast-food market.
Additional Purchase of
Rice to Stabilize Prices
https://www.foodnews.co.kr/news/articleView.html?idxno=106660
Summary: To stabilize rice
prices, the government decided to purchase an additional 50,000 tons from the
private sector and use a total of 100,000 tons for food aid this year.
The Ministry of Agriculture, Food and Rural Affairs discussed the current rice
supply, demand and price trends at the government¡¯s policy consultation with
National Assembly members and announced the unanimous agreement on the need for
additional government measures to stabilize rice prices. The government
determined that the decline in rice prices was due to the temporary inventory
burden on production distributors such as Nonghyup. The government plans
to quickly implement more related measures and continuously monitor rice prices
and inventory situations to ensure that rice prices remain stable through
drones, AI technology and policies such as the ¡®preemptive supply and demand
management¡¯.
Price Surges on Agricultural
Products While Oil Prices Fall
Summary: In January of 2024, there was a decrease in inflationary
pressure as Korea's inflation dropped below 3 percent. Although inflation
in South Korea has slowed down, core inflation has gone up by 2.6 percent
on-year. The cost of daily necessities such as food, clothing and housing
has increased by 3.4 percent while prices of agricultural, livestock and fish
products have surged 8 percent. Of the agricultural products, prices of
apples and tangerines have spiked 56.8 percent and 39.8 percent respectively.
The South Korean government is
expecting the inflationary pressure to decrease at a slower rate of around 2
percent at the end of the year.
Online Shopping Transactions are
the Highest of All Time
https://www.hankookilbo.com/News/Read/A2024020113530005035
Summary: Due to online shopping¡¯s
convenience and low price, the amount of online shopping transaction exceeded
200 trillion won, an increase of 8%. According to the figures released by
Statistics Korea, post-pandemic there were increases in several areas: travel
and transportation services (44%) and e-coupon services (34.9%). In terms
of total transactions value, food and beverages (13.1%), food services (11.6%),
and travel and transportation services (10.6%) were the highest. Last
year, overseas direct sales were 1.6561 trillion won (10.1%-) while overseas
direct purchases were 6.7567 trillion won (26.9%+), amounting to a deficit of
5.1006 trillion won.
¡®Ramyun Library¡¯ Delivers Ultimate Noodle
Experience
https://www.koreatimes.co.kr/www/culture/2024/02/141_368003.html
Summary: CU, one of leading
convenience store chains in Korea, opened a new branch store in Seoul, the
Ramyun Library, on December 4, 2023. The Ramyun Library has transformed
into a culinary hotspot with an eye-opening collection of more than 200
varieties of ramyun, redefining the concept of the existing convenience
stores. Its focal point is a striking 100-compartment display rack
dedicated solely to packaged ramyun or Korean instant noodles. The vast
display features a curated collection of 105 packaged ramyun, alongside 15
foreign noodle dishes, with an additional 120 types of cup ramyhun. Since
its grand opening, an average of 600 to 700 customers have been visiting the
Ramyun Library daily. Last December, its sales reached 15,000 ramyun
packets, marking a 10-fold increase compared to other convenience stores.
Agricultural Trade Office, U.S. Embassy - Seoul
Tel: 82-2-6951-6848 Fax: 82-2-720-7921
Email: atoseoul@state.gov