Market Information
Asia Pacific

Fish and Seafood Market Overview
Republic of Korea

May 2003

Embassy of Canada In Seoul
9^th Fl., Kolon Building
45, Mukyo-dong, Jung-gu
Seoul, Korea
Contact: Mr. J.H. Kim, Trade Commissioner
Tel.: (82-2) 3455-6057
Fax: (82-2) 755-0686
E-mail: jong-hoon.kim@seoul.gc.ca

Market Overview

Fish and marine products are an important component of the Korean diet as they are in much of Asia. Korea developed a powerful fisheries industry by intensively exploiting its inshore fishery sector and establishing a large offshore fishery capability that actively sought opportunities worldwide. The production-oriented policy has led to the overexploitation of coastal and offshore fishery resources. The politics of the international fisheries has reduced Korean access to remaining offshore stocks. As a result, Korean fishery production began to decline significantly in the 1990s and since 1995, Korea has been relying heavily on imported fish and other seafood. The total size of the fish and seafood market based on production in Korea is around 2.5 million metric tons. The estimated value of fish and seafood import market in 2002 was $1.2 billion⁽¹⁾ with approximately $27.3 million from Canada.

Live Fish Species Consumed in Korea

Marine fish represent the main growth sector due to the strong demand for raw fish. The main culture species are olive flounder, rockfish, sea bream, sea bass, yellow tail, shrimp, prawn, lobster, and sea squirt (turicate). These culture species are sold live to fish mongers in the open markets as well as to hotels and upper-class Japanese restaurants for making raw dishes (sashimi or sushi). The total market for live fish sector in 2002 was estimated at $103 million. Canadian live lobster suppliers are successful in the Korean market. The market potential for live lobsters and snow crabs is still growing.

Frozen Fish Species Consumed in Korea

The leading species for frozen fish in terms of consumption are: Alaskan pollack, Pacific cod, squid, Japanese pilchard (herring), mackerel, chub mackerel, Spanish mackerel, largehead hairtail, monkfish, globe fish, skate, pomfret, tuna and smoked salmon. The import volume for these items was $1.2 billion in 2002.

Mollusk and Seaweed Consumed in Korea

Oyster, clams, cockle, mussels, arkshell and various types of seaweed are widely consumed in South Korea. However, these opportunities are very limited due to an abundant local supply of these products. The total market size of shellfish based on production in 2001 was 1,021, 000 metric tons and 486,000 metric tons for seaweeds.

Opportunities

Lobster

Frozen lobsters are used mainly in hotel buffets and in up-scale Japanese restaurants, especially Tepanyaki seafood restaurants. Fresh lobsters and rock lobsters are consumed principally in raw form (sashimi) in the more affluent households. Lobster is an essential ingredient, along with locally cultured shrimp and prawns in the Tepanyaki restaurants. Canadian lobsters have been gaining a high profile in the Korean market due to its low mortality rate and low mercury and lead levels in comparison with Australian and U.S lobsters.

Salmon

Salmon has traditionally not been a popular dish in Korea and there are still many Koreans who have never tasted salmon. The consumption of fresh salmon is extremely limited due to its high costs. Those who consume salmon products have them fresh, cooked or smoked. Smoked salmon is mainly consumed in tourists hotels, family restaurants and buffet restaurants and department stores/discount outlets. Frozen salmon imports are being used for domestic smoking purposes. Korean importers prefer 6-9 pound chum and koho over sockeye as Korean buyers tend to buy based on price rather than quality.

Norway and Chile are the major competitors for frozen and smoked salmon with their salmon supply generally being sourced from farms. Even though Koreans consider salmon a luxury food, Canada should be able to change the general perception of consumers on salmon through targeted promotional efforts. These efforts would help expand market opportunities for Canadian salmon in Korea.

Other Frozen Fish (such as monkfish, skate, herring, mackerel, hokigai, whelk, hagfish, freshwater eel, cod, pollack, coldwater shrimp, perch, and flounder)

Consumption patterns are changing rapidly for certain food products among the younger Koreans; however the consumption of seafood and fish is not changing as fast as it is for other food products such as burgers, sausages and french fries. Nonetheless, per capita consumption of fish is increasing. The above mentioned Canadian fish species are very popular among importers as Canada has been able to maintain a very positive image in Korea with respect to fish and seafood quality. Canadian suppliers should continue to maintain the current quality standards at reasonable prices.

The growth of an affluent middle class in Korea has recently led to a burgeoning market for some seafood products including lobster and hokigai. With the rapid growth of Hotel, Restaurant and Institution (HRI) business in Korea, the demand for frozen low priced finfish species should be strong in the future.

Key Participants

There are very few foreign participants in the Korean market. Norwegian Salmon Marketing Board and Alaska Seafood Council are promoting their fish products towards Korean buyers through their local representatives.

Private- and Public-sector Customers

Fish and seafood items can be freely imported without any market restrictions. The bidding system on fish products has been eliminated. In many cases, individual fish buyers base their purchasing decisions on cost rather than quality and freshness.

Export Checklist

Import Restrictions

Until 1995, import regulations required all importers to have a specific license for all imports; however this restriction has been eliminated. Any kinds of fish can now be freely imported without any restrictions. There is no tariff quota system on imported fish and seafood.

Customs Duties

The Korean government applies a 20% tariff on fresh or chilled fish species and a 10% tariff on frozen fish species but this does not present a major obstacle for expanding fish consumption in Korea.

Documentation

Documents to be submitted to obtain import permission are based on the type of product, origin of the import and kind of business in which the applicant is engaged. The following represents of a summary of the basic documents and information necessary to apply for an import permit for fish/seafood entering the Korean market.

• Completed application for an import permit from the National Fishery Inspection Service (this should be done by importers)
• Bill of lading
• Invoice
• Packing list
• Certificate of origin or Health certificate issued by exporting country government

Key Contacts

Agriculture and Agri-Food Canada
International Markets Bureau
Market and Industry Services Branch
Contact: Inge Vander Horst
International Market Development Officer
Asia/Pacifict
Sir John Carling Building
Room 1049, 930 Carling Avenue
Ottawa, ON K1A 0C5
Tel: (613) 759-7535
Fax: (613) 759-7506
E-mail: vanderhorsti@agr.gc.ca

Embassy of Canada in Seoul
Kolon Bldg. 9^th Floor
Mukyo-Dong, Chung-Ku
Seoul, Korea
Contact: J.H. Kim, Trade Commissioner
Tel.: (82-2) 3455-6057
Fax: (82-2) 755-0686
E-mail: jong-hoon.kim@dfait-maeci.gc.ca

Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, ON K1A 0G2

Market Support Division (TCM)
Contact: Richard Philippe
Tel.: (613) 995-1773
Fax: (613) 943-8820
E-Mail: richard.philippe@dfait-maeci.gc.ca

Korea and Oceania Division (PKE)
Contact: Lynne Thomson, Trade Commissioner
Tel: (613) 995-8744
Fax: (613) 996-1248
E-Mail: lynne.thomson@dfait-maeci.gc.ca

Ministry of Maritime & Fisheries Affairs
#139 Chungjongro-3 Ka, Sodaemun-ku, Seoul, Korea
Tel: (82-2) 3148-6114
Fax: (82-2) 3148-6844

National Fisheries Products Quality Inspection Service
#192-9 Ilsan- 2 dong
Koyang City, Kyunggi-do, Korea
Tel: (82-31) 976-5874
Fax: 82-31) 976-1058

Bibliography

KOTIS Trade Statistics, downloaded from http://stat.kotis.net on April 2003.
South Korea Agri-Food Country Profile, downloaded from http://ats.agr.ca/asia/e0091.htm on April 2003.

Useful Internet Sites

Embassy of Canada in Seoul: http://www.korea.gc.ca
The Canadian Trade Commissioner Service: http://www.infoexport.gc.ca
Canada Agri-Food Trade Service: http://ats.agr.ca
Korean Ministry of Maritime & Fisheries: http://www.momaf.go.kr
National Fisheries Products Quality Inspection Service: http://www.nfpqis.go.kr
Korea International Trade Association: http://www.kita.org

If you wish to receive a personalized Virtual Trade Commissioner Web page containing market reports, business news and leads that match your international business interests, we invite you to register with us at https://www.infoexport.gc.ca/registration/en/CCRegistration.jsp

Prepared by the Embassy of Canada in Seoul.

¹ All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is 1CAD=0.65 USD, regardless of the year in question.