Frozen Russian pollock that arrived at Sokcho Port is being unloaded.(Photo: courtesy The Sorak Weekly News)

Russian Raw Materials Dominate the Korean Market

SOUTH KOREA
Friday, September 13, 2024, 00:10 (GMT + 9)

A significant portion of Russian raw materials now dominates the Korean seafood market, with some of these materials being processed locally and others being re-exported. Additionally, a substantial share of Chinese seafood products in the Korean market is made using Russian raw materials.

Russia was the largest supplier, exporting $1.4 billion in seafood to Korea in 2022. China was the second largest supplier, followed by Vietnam, Norway, and the United States.

Frozen Cod Imports Drop by 50% by August 2024; Russian Share Hits 96%

As of August 2024, South Korea's import volume of frozen cod has fallen by half compared to the previous year. While the country imported 875 tons of frozen cod in August—marking a 36% increase from 645 tons during the same month last year—the total imports from January to August reached 4,546 tons, a 50% decline from 9,126 tons in the same period of 2023. This accounts for approximately 0.78% of South Korea's total seafood imports of 583,751 tons.

By country, Russia remains the dominant supplier, contributing 96% of the total frozen cod imports with 4,357 tons. The United States followed with 123 tons, Canada with 46 tons, and China with 20 tons.

Regarding import prices, Russian frozen cod had the highest average price at USD 3.18 per kilogram, followed by the U.S. at USD 2.75 per kilogram, China at USD 2.60 per kilogram, and Canada offering the lowest at USD 1.87 per kilogram.

The total import value for frozen cod in August amounted to USD 2.55 million, representing a 48% increase from USD 1.71 million in August 2023. However, the cumulative import value for 2024 has decreased by 59%, totaling USD 14.31 million compared to USD 35.12 million over the same period in 2023.

The average import price for frozen cod stood at USD 3.15 per kilogram, an 18% decrease from USD 3.85 per kilogram last year. This drop reflects both a reduction in import volumes and a decline in global cod prices. For reference, the domestic wholesale price of Russian-origin frozen cod (18.5 kg, size L) is currently trading at 85,000 KRW.

Before reaching Western markets, much of Russia's catch makes a stop at Busan Harbor, one of the world's largest shipping ports. Since Moscow's invasion of Ukraine, the port has experienced a significant increase in the volume of Russian seafood passing through its docks. South Korea serves as a key intermediary in the Russian seafood trade between Japan and China. This role is supported by several factors: the country's longstanding ties to Russian fishing grounds, its cost-effective bonded cold storage facilities, efficient receiving and shipping procedures, and more flexible financial arrangements for product transfers.

U.S. Seafood Imports to South Korea Decline by 13% in August 2024

The United States remains the fifth largest seafood exporter to Korea with a 3.5 percent market share. Korean consumers generally see U.S. fishery products as high-quality and unpolluted, but regional competitors often have lower prices.

In August 2024, the volume of U.S. seafood imported to South Korea decreased by 13% compared to the same period last year. South Korea imported 2,308 tons of U.S. seafood in August, down from 2,663 tons in August 2023. The cumulative import volume from January to August was 23,615 tons, a 9% decline from 26,054 tons during the same period last year, making up 4% of South Korea's total seafood imports of 583,751 tons.

Among key U.S. seafood species, Frozen Salmon saw a notable increase with 2,903 tons imported, compared to none in the same period last year. Frozen Atka Mackerel imports surged by 95%, reaching 2,766 tons, up from 1,415 tons in 2023. Conversely, Frozen Yellowfin Sole imports plummeted by 48%, totaling 2,475 tons compared to 4,779 tons last year. Frozen Ray imports rose by 15%, amounting to 2,378 tons, up from 2,067 tons in 2023, while Frozen Cod Milt imports declined by 12%, with 1,322 tons imported compared to 1,922 tons last year.

The total value of U.S. seafood imports in August was USD 9.19 million, reflecting a 6% increase from USD 8.66 million in the same period of 2023. However, the cumulative import value for the year decreased by 9%, totaling USD 76.96 million, down from USD 84.81 million last year. The average import price was USD 3.26 per kilogram.

These figures underscore significant changes in the import volumes of key seafood products from the U.S., potentially impacting the overall market presence of U.S. seafood in South Korea.

Source: Union Forsea Corp./FIS

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