FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday,  January 10,  2025

For Coverage:  January 4 ~  January 10, 2025

MFDS provides additional information on hazard analysis of food ingredients
http://www.foodnews.co.kr/news/articleView.html?idxno=111507
Summary:  Korea’s Ministry of Food and Drug Safety (MFDS) along with Korea Agency of HACCP Accreditation & Service (KAHAS) will provide hazard analysis information of food ingredients and food standards and specifications to help small-scale businesses operate HACCP efficiently.  Since 2021, MFDS and KAHAS have provided hazard analysis information for 163 types of food ingredients to support small companies struggling with analysis costs.  In addition to those food ingredients this year, the number of food ingredients has been expanded to a total of 200 types to make it easier for HACCP operators to get various hazard information.  The new additions include 21 types of highly non-conforming food ingredients such as eggplant, cilantro, spinach, water dropwort, and flatfish and 16 types such as oats, tofu, and olive oil.

K-Food+ exports exceed $13 billion in 2024
http://www.foodnews.co.kr/news/articleView.html?idxno=111492
Summary:  According to government’s preliminary figures, exports of K-Food+ (including agricultural food and upstream and downstream industries) in 2024 recorded an all-time high by reaching $13.03 billion, a 6.1% increase from the previous year.  Agricultural food exports amounted to $9.98 billion, and exports of upstream and downstream industries, including smart farms, agricultural equipment, and veterinary drugs, came to $3.05 billion.  By product, ramyeon accounted for $1.25 billion in exports, recording a 31.1% growth rate.  Rice processed food was exported at $300 million, up 38.4% from the previous year.  Kimchi exports were at $163.6 million which surpasses the previous record of $159.9 million in 2021.  By country, the United States was the largest export market with $1.59 billion, followed by China ($1.51 billion) and Japan ($1.37 billion).  Exports of upstream and downstream industries totaled $3.05 billion, with increased exports of items such as pet food ($160 million), veterinary drugs ($280 million) and agricultural pesticides ($810 million) despite growth slowdown in agricultural equipment and smart farms.

Hershey’s Kisses chocolates see sales spike after anti-Yoon protesters earn nickname
https://www.koreatimes.co.kr/www/nation/2025/01/113_389848.html#:~:text=The%20unexpected%20surge%20is%20attributed,Seoul%2C%20calling%20for%20his%20arrest
Summary:  According to a major convenience store chain, on January 6^th, sales of Hershey’s Kisses at its stores nationwide increased by 8.4% compared to the previous week.  Because protesters, who gathered for President Yoon’s arrest, earned the nickname “Kisses Protesters” due to their appearance.  Many participants wrapped themselves in silver foil thermal blankets to endure the freezing temperatures and heavy snowfall last weekend (as shown in the photo below).  Hershey’s Kisses, known for their teardrop shape and convenient single-serving size, have been a popular chocolate globally since their launch in 1907.

Gov’t on alert ahead of Lunar New Year over soaring produce prices
https://www.koreatimes.co.kr/www/biz/2025/01/602_389815.html
Summary:  As produce prices are rising steeply in the lead-up to Korea’s Lunar New Year later this month, the government is anticipated to announce measures to lower prices, such as an increase of produce supplies and sales campaigns, according to a source familiar with the matter.  The prices of vegetables in high demand for the Lunar New Year holiday have been increasing sharply due to abnormal weather conditions last year resulting from climate change.  According to data from the Korea Agro-Fisheries & Food Trade Corp., the retail price of a head of napa cabbage averaged 5,027 won ($3.42) as of Jan. 2, up 58.9 percent from a year earlier.  The average retail prices of radishes, pears, and strawberries also went up 77.4 percent, 24.6 percent, and 10.4 percent year-on-year, respectively.  A source said that such price hikes result from the heat wave as well as heavy rainfall in some regions last year.

SAF exports emerge as new income source for struggling refiners
https://www.koreatimes.co.kr/www/tech/2025/01/129_389789.html
Summary:  Competition among oil refiners in Korea is heating up to dominate the market for sustainable aviation fuel (SAF) exports by selling the alternative fuel made from nonpetroleum feedstock that reduces emissions from air transportation.  Oil refiners in Korea increased their investments in SAF last year amid worsening profitability caused by a decline in refining margins.  SK Energy said in its press release that it became the first Korean oil refiner to export SAF to the European market.  On the other hand, HD Hyundai Oilbank emphasized that it started supplying SAF to Japan’s All Nippon Airways last June.  In addition, S-Oil and GS Caltex are also increasing their facility investments for SAF production.  As Korea and other developed countries are set to obligate airlines to use the eco-friendly fuel, their rivalry in the SAF market is likely to become fiercer.

Weak won pushes food firms to bolster exports
https://www.koreatimes.co.kr/www/tech/2025/01/129_389664.html
Summary:  The weakening of the Korean currency against the U.S. dollar is prompting the country’s major food companies to focus more on exports than domestic sales, as outbound shipments are generally less impacted by a depreciating won compared to local consumption.  From bakeries to frozen foods, snacks, and instant noodles, more and more food companies are establishing manufacturing plants abroad since this international expansion not only enhances efficiency in supplying global markets but also helps companies mitigate the rising financial burden of soaring exchange rates by allowing them to source key ingredients locally.  CJ Cheiljedang is expanding its overseas production in both Europe (Hungary) and the United States (South Dakota), focusing on producing its Bibigo frozen foods.  SPC has taken steps to build a manufacturing plant in Texas for its Paris Baguette bakery.  Meanwhile, Orion is considering establishing a new manufacturing plant in the United States for its snacks.  A food industry official said that amid the uncertainties in the domestic food market, where the sharp weakening of the won is impacting on price increases of raw ingredients and products, it will continue to drive companies to expand their markets overseas and seek solutions beyond domestic borders.

Korea’s birthrate rebounds for 1^st time in 9 years
https://www.koreatimes.co.kr/www/nation/2025/01/113_389666.html
Summary:  Korea saw a rise in registered births in 2024 for the first time in nine years.  According to the Ministry of the Interior and Safety, 242,334 births were registered last year, increased by 3.1% compared to 2023.  In 2024, male births (123,923) outnumbered female births (118,411) by 5,512.  However, despite the increase in births, natural population decline persisted, as deaths rose to 360,757, marking a 1.93% increase from the previous year.  Korea’s total registered population reached 51.21 million in 2024 (25.71 million of women/ 25.49 million of men), marking the fifth consecutive year of decline.  The largest proportion of the population was individuals in their 50s, who made up 17%, followed by those in their 60s (15.27%) and 40s (15.08%).  The average age of the population rose to 45.3 years and the working-age population (15-64 years) declined by 1.21% to 35.49 million, which remained the largest portion at 69.3%.  Government officials said that the establishment of policies to improve childcare support, reduce economic burdens on families, and encourage work-life balance are crucial to reversing Korea’s declining fertility trend over the long term.

Important information of food like shelf life should be on the packaging in large print
http://www.foodnews.co.kr/news/articleView.html?idxno=111451
Summary:  Korea’s Ministry of Food and Drug Safety (MFDS) pre-announced an amendment bill on labeling and advertising of food on January 3^rd, stating that important information such as the name and the shelf life of the food product, allergens, and storage instructions should be displayed big and clearly on the packaging to make the information much more visible, while the rest of the information should be provided through e-labels like QR codes.  By doing this, consumers will be able to easily get the food information on the label of the product, while the food industry will also contribute to environmental protection and carbon neutrality by reducing packaging waste.  MFDS said that it will continue to make reasonable improvements to the food labeling system to protect the public health and people’s right to choose and create a safe food consumption environment.

Polarized Consumption Trend in Whiskey
https://www.hankyung.com/article/2025010101571
Summary:  As whiskey growth slows down, the market is becoming polarized between the super-low-priced sector and the ultra-premium sector.  According to Korean trade data, whiskey imports from January to November 2024 reached 25,017 tons, a decrease of 11.7% compared to the same period in 2023 (28,391 tons).  Whiskey imports peaked in 2023 at a record 30,586 tons, driven by the popularity of highball drinks and the home-drinking trend.  However, continuing inflation and the post-pandemic slowed down the consumption of whiskey, which is relatively pricey compared to other alcoholic drinks.  In response, companies in the industry are expanding their offerings with more affordable options, such as bottles priced at 25,000krw or even at 9,900krw.  At the same time, it's observed that some others are strengthening marketing activities on ultra-premium products including bottles priced at over a million krw, as the demand in this segment remains steady despite the difficult economic situation with high inflation and high interest rates.