Seoul Food & Hotel 2013, May 14-17, 2013

Ambassador Sung Kim cut the ribbon at the opening ceremony at Korea’s largest international food and agriculture show, Seoul Food & Hotel 2013. More than 45 American companies and trade associations representing a wide range of products met with their Korean counterparts on opening day of the four-day show. The Korea-United States Free Trade Agreement (KORUS FTA) has zeroed-out or reduced duties on American food products and in 2012, the first year of the of the Agreement, U.S. exports of high-value, consumer oriented products to Korea reached a record $2.8 billion. For more information on trade opportunities under KORUS FTA please see KORUS FTA.

Korean Thoroughbred Race Horse Buyers Make Purchases at Ocala Spring Auction

Thoroughbred race horse buyers from Korea attended the Ocala Spring Sales (Florida), April 20-26, 2013 and purchased a total of 24, two-year-olds. Florida Department of Agriculture and Consumer Services and ATO Seoul assisted the group in receiving support from Ocala thoroughbred breeders. The United States is the leading supplier of horses to Korea and accounts for 65 percent market share. Demand for imported horses is expected to remain strong in the coming years as a new racecourse will be constructed in 2015 and the Korean government introduced the “Horse Industry Development Act” in 2011 and abolished the price cap on imported mares, in 2012. Although facing increased competition from third country origins, the United States is expected to remain a key supplier of thoroughbred race horses, breeding mares, and saddle horses to Korea as the 8 percent import duty is phased out over a 5-year period under KORUS FTA. For more information on the Korean market for horses, please see Gain Report KS1126: Korea Horse Market Brief.

Live Maine Lobster Promotion at Lotte Mart, May 1-5, 2013

Lotte Mart, a leading Korean retailer, launched a nation-wide Maine lobster promotion in 102 stores in celebration of Family Month in Korea. Live Maine lobsters were featured from May 1-5 and sales were brisk with consumers snatching up about 39,000 lobsters in five days. Lotte Mart will feature frozen, blanched Maine lobster throughout the month of May.

Korean lobster imports totaled $32 million, in 2012, up 33 percent from the previous year. Lobster imports from the United States were $1.8 million making the United States the second largest supplier with a 6 percent market share. In Korea, lobsters are mainly consumed in high-end seafood restaurants, hotel buffet restaurants, and premium wedding halls. Luxury department stores and discount stores have not typically been a major avenue for distribution, but the Korea—United States Free Trade Agreement (KORUS FTA) has focused attention on Maine lobster and a growing number of importers and retailers are interested in the product which could raise U.S. market share considerably in 2013. Under KORUS FTA, the 20 percent import duty will be phased out over 5 years and Maine lobster will enter duty free in 2016. In 2013, the duty is 12 percent. This duty reduction will make U.S. lobster price competitive with other origins which still must pay a 20 percent import duty. For more information on the Korean lobster market please see Korea Product Brief: Lobster