Korea: Seafood Anuual Report 1995
AGR Number: KS5048

From: American Embassy, Seoul
To: USDA/FAS Washington D.C.
Country: KS
Year: 1995
Report Code: 54 Post Report Sequence Number: 002
Report Title: Seafood
Report Type: A - Annual Report
Report Subject: SEAFOOD ANNUAL REPORT - 1995
Approved By: DAVID M. SCHOONOVER
Drafted By: D. B. VOBORIL/S. C. CHOI
Security Classification: UNCLASSIFIED, NOT OFFICIAL USDA DATA
Date Due (MM/DD/YY): 09/18/95

Report Code: KS9554A
AGR Number: KS5048
Page: 1
Seafood

General Summary

Until recently, the Korean domestic seafood market was highly protected, leading to high domestic prices and limited market access for a variety of seafood products. This, however, has begun to change due to both the 1993 Uruguay Round Agreement and the Balance of Payments (BOP) agreement signed under the auspices of the GATT.

Thus, Korea is a relatively new and rapidly developing market for U.S. exporters and competitor countries. On one hand, this presents several opportunities for various species, including lobster, monkfish, salmon, and Alaska pollack. On the other hand, Korea can be a very difficult market and presents several risks to new-to-market suppliers.

Of the products liberalized in 1995, best prospects for U.S. suppliers include frozen fillets of Alaska pollack and frozen fish surimi of Alaska pollack. In 1996, liberalized products include frozen mackerel, frozen Alaska pollack, frozen cuttlefish, and canned/prepared mackerel. For 1997, liberalized products include live eels, frozen hairtail, frozen peeled shrimp and prawns, frozen squid, dried cuttlefish and squid, dried laver, and canned tuna.

In terms of the various species, imports of salmon should continue to grow at a modest pace. However, it will take a long time to significantly increase the overall salmon consumption in Korea due to its unfamiliarity among the Korean consumers.

For crabs, the market turned dramatically in 1994 as importers sought the blue swimming crab from Asian suppliers. The United States has lost much of this market to China, Vietnam, and Thailand.

For roe, the market remains volatile due to swings in local\regional production and international prices. Alaskan pollack roe is the most popular roe and is used for salted/spiced roe. Russia will remain the dominant supplier though opportunities will continue to exist for U.S. suppliers.

For flatfish, the market is relatively stable with annual consumption approaching 50,000 MT. Total supply is fairly evenly split between domestic production and imports. The United States is the dominant exporter, with around 75 percent of the export market.

For groundfish, this sector annually accounts for approximately 20 percent of the total seafood consumed in Korea, making it the largest category among the items covered in this report. Alaska Pollack is the major imported species, with Russia the dominant supplier.

Report Code: KS9554A
AGR Number: KS5048
Page: 2
Seafood

General Summary

In terms of the 3-5 year outlook, Korea should offer one of the best growth markets in Asia for U.S. suppliers. Besides market liberalization, other factors include structural limitations on domestic production, rising personal incomes, changes in the Korean diet, a continued strong economy.


Exchange Rate: Korean Won 760 per US$ on September 1995.

Report Code: KS9554A
AGR Number: KS5048
Page: 3
Seafood

Total Edible Fishery Prods.

Report Code: KS9554A
AGR Number: KS5048
Page: 4
Seafood
Total Edible Fishery Prods.

PRODUCTION

General

The Korean peninsula's geographical location offers excellent opportunities for a diversified fishing industry. On the east coast, the Eastern Sea (also known as the Japan Sea) provides deep sea fishing with a deepest point of 4,049 meters and an average water depth of 1,700 meters. Warm and cold water alternate each season, with temperatures rising to 20 degrees centigrade (C) in summer and falling to below 10 C in the winter. It is known for its alaska pollack, cod, squid, king crab, hairing crab, turban shell and abalone.

On the west coast, the Yellow Sea has an average water depth of 44 meters with water temperature rising up to 25 C in the summer and falling below 8 C in the winter . Major species include corker, hairtail, mackerel, surf-clam, large clam abalone, lobster, Japanese paste shrimp and blue crab.

On the south coast, warm currents move from the Pacific Ocean toward the northeast. This brings diverse fishery resources such as anchovy, mackerel, oyster, mussels, shellfish, octopus, beka squid, laver and sea mustard. Water temperature and can reach 30 C in the summer and seldom falls below 10 C in the winter .

Korea's industrialization and urbanization has led to a dramatic decline in the number of families directly involved in fishing. Since 1980 the number of fishing families has fallen from 157,000 to 110,400. Total population classified as "fishing population" is 390,000 out of the total South Korean population of 45 million. Aquaculture fishing families remain the largest fishing sector with a ratio of 36 percent.

Report Code: KS9554A
AGR Number: KS5048
Page: 5
Seafood
Total Edible Fishery Prods.

PRODUCTION

1/ Including the number of 23,000 fishing families, who provided their labor alone without fishing facilities.
Source: The Ministry of Agriculture, Forestry and Fisheries (MAFF)

1/ 1994 official data will not be released until the end of September 1995.
Source: National Fisheries Administraion (NFA)

1/ 1994 official data will not be released until the end of September 1995.
Source: NFA

Report Code: KS9554A
AGR Number: KS5048
Page: 6
Seafood
Total Edible Fishery Prods.

PRODUCTION

Aquaculture Harvest-Wild Catch Production Factors

The Korean fishing industry consists of On/Off-Shore, Deep Sea, Aquaculture, and Fresh Water fishing. Production annually exceeds 3 million metric tons (MMT) and consists of 90 different types: 50 types of fish, 15 types of shellfish, 10 types of seaweed, and about 15 other types of sea animals and vegetables.

Major trends include modest increases in aquaculture production and annual fluctuations in on\off shore and deep sea production. The continued development of the aquaculture industry highlights the shift  to "cultivation" from "catching". Fresh water fishing remains relatively insignificant.

Total commercial catch in 1995 is estimated at 3.6 - 3.7 million MT (MMT) taking into account of the amount of catching fishery production for the first half of 1995. This compares to 3.47 MMT in 1994 and 3.33 MMT in 1993. Increases in deep sea production in 1994 and continued growth in aquaculture more than offset the modest decline in on\off shore production.

Major on/off-shore catches were squid, mackerel and anchovy. An increase in mackerel production only partially offset declines in anchovy and squid production. Production in 1994 from on/off-shore slightly decreased to 1.49 MMT, down 2.7 % from 1993 levels. This was partially due to a reduction in harvested area affected by water pollution and land reclamation projects. On-shore fishing usually refers to fishing vessels of less than 8 tons while Off-shore fishing refers to fishing vessels over 8 tons.

Aquaculture in coastal waters produced 1.07 MMT in 1994 compared to 1.04 MT in 1993. In 1983 the Korean government officially targeted the aquaculture industry as a key industry to be supported by the government. Over the past several decades the industry has developed as follows: from seaweeds (laver and sea mustard) in the 1960's; to shellfish (oysters and ark shell) in the 1970's; and to high-priced species (fishes and pearl oysters) in the 1980's. In the 1990's, the industry continues to develop rapidly. Approximately 40 species are being cultivated, mainly bastard halibut, seabream, rockfish, shrimp, oyster, clam and seaweed. Seaweed production, however, continues to dominate and accounts for approximately 75 percent of total aquaculture production.

Fresh water production totalled only 31,000 MT from landing and aquaculture combined. Fresh water occupies slightly over 203,000 ha in Korea, or about 2 percent of total land area Fresh water areas are composed of 63,000 ha of dam and lake, 92,000 ha of river and stream, and 48,000 ha of water reservior. There are about 20 different species, including common carp, carp, pale chub, eel, trout, and Israel carp. Israel carp accounts for nearly 40 percent of total production in this sector. Aquaculture in the fresh waters produced 21,000 MT from 2,180 ha in 1994. Major species of fresh aquaculture are Israel carp, Eel and Trout.

Report Code: KS9554A
AGR Number: KS5048
Page: 7
Seafood
Total Edible Fishery Prods.

PRODUCTION

Korea's deep-sea fishing industry began in 1957 with tuna fishing in the Indian Ocean. The industry grew dramatically until implementation of the Exclusive Economic Zones (EEZ) and other international regulations. Today, the industry consists of approximately 642 fishing vessels in all five oceans. Deep-sea fishing includes Alaska pollack, tuna, and squid. In 1994, deep sea  production increased to 887,198 MT, up 20 percent from 741,017 MT in 1993.  The increase was due to large increases in Alaska pollack and tuna production.

Report Code: KS9554A
AGR Number: KS5048
Page: 8
Seafood
Total Edible Fishery Prods.

PRODUCTION

Report Code: KS9554A
AGR Number: KS5048
Page: 9
Seafood
Total Edible Fishery Prods.

PRODUCTION

Report Code: KS9554A
AGR Number: KS5048
Page: 10
Seafood
Total Edible Fishery Prods.

PRODUCTION

Report Code: KS9554A
AGR Number: KS5048
Page: 11
Seafood
Total Edible Fishery Prods.

PRODUCTION

1/: Albcaore, Yellowfin, Bigeye, Bluefin, Skipjack, and Other tuna
2/: White Marlin, Black Marlin, Blue Marlin, Striped Marlin, Sword Fish, Sale Fish, and Other Manns
Source: MAFF

Report Code: KS9554A
AGR Number: KS5048
Page: 12
Seafood
Total Edible Fishery Prods.

CONSUMPTION

General

Korea's per capita fish consumption rose to 32.1 kg in 1994 compared to 30.2 kg in 1993. Domestic consumption in Korea is still largely tied to local production. Thus, an increase in production has directly led to an increase in consumption. Other factors in increased consumption include a strong economy, higher incomes, and import liberalization. Increased consumption came about despite dramatically higher prices for popular items such as anchovies, squid, and fresh Alaskan pollack.

The trend in increased consumption is expected to continue, boosted by additional factors such the perception by consumers of fish as a healthy alternative to red meat and the industry's effort to diversify fish products, improve the quality, and develop processing technology.

The biggest jump over the past several years has been in seaweed consumption. This growth has corresponded to the government's development assistance in the production of seaweed within the aquaculture sector.

Utilization Patterns:

Consumption patterns have diversified into more processed products from fresh fish products. Fish used to be a subsidiary material served with rice. Now, it is increasingly becoming a main entree at Korean meals. The industry has tried to take advantage of this by targeting its marketing at the younger generation. The industry has also continued to develop its processing industry with significant increases over the past ten years in consumption of frozen fish, surimi, and dried seaweed.

Report Code: KS9554A
AGR Number: KS5048
Page: 13
Seafood
Total Edible Fishery Prods.

CONSUMPTION

Substitution Patterns:

As incomes continue to rise, the trend in increased per capita consumption of meat and fish products will continue while consumption of grains and other food crops will decline. Since 1985, per capita consumption of starchy food crops has declined from 182 kg to 161 kg, while consumption of all poultry, livestock and seafood products has increased from 82 kg to 128.5 kg in 1994.