South Korea: Tariffs on pork and sugar will be removed from tomorrow

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Published May 31, 2023

Tridge summary

From June this year until the end of the year, tariffs on pork, sugar and mackerel will be eliminated. The price of samgyeopsal, which has recently surged in demand due to outdoor activities, is expected to stabilize. The government announced that it passed the Cabinet meeting on the 30th to adjust tariff rates on eight agricultural and marine products, including pork and sugar, to 0% from June. The government is implementing quota tariffs that temporarily lower tariff rates on certain quantities when consumer prices of certain items soar. On pork, the 0% quota tariff, which expires at the end of this month, will be extended until the end of the year. The government decided to apply a 0% tariff on up to 45,000 tons of samgyeopsal, expecting that the price of pork belly in May would be 17% higher than in the previous year as outdoor activities and eating out have increased recently. A 0% quota tariff will be applied to mackerel up to 10,000 tons by the end of August. In consideration of international sugar prices, which began to rise at the end of last year, the quota tariff rate on sugar will be further reduced to 0%. Currently, a quota tariff of 5% is applied instead of the basic tariff rate of 30%, which was scheduled to end at the end of this month. Recently, international sugar prices have soared as the weather in India, a major producer, has deteriorated. The application of the 0% quota for crude alcohol, which is used as a raw material for soju, will also be extended until the end of the year. The plan is to induce price stability by reducing factors that increase the price of soju. The government expected that the quota tariff measures would provide a total support effect of 47.3 billion won.