South Korean Seafood Exports Drop to Lowest July Since Pandemic

Frozen Whole Pacific Salmon

Published Aug 18, 2023

South Korean seafood exports of HS code 03 fell sharply this July, experiencing their worst levels in the same month since 2020. Higher prices continue to pressure down external demand. Frozen fish, particularly Alaskan pollock, was the product with the largest losses.

South Korean seafood exports (inside HS code 03) continued to fall sharply this July, down 46% year-over-year (YoY) in terms of volume at 39.6 thousand metric tons (mt) and down 32% in terms of value at USD 123 million. July’s year-on-year (YoY) decline was the sixth consecutive one.

Exported volume and value were at their second worst for July since 2018. The worst level for both was in 2020 when generalized demand dropped, and supply issues ensued due to pandemic restrictions.

Source: Tridge and Korea Customs

It's worth noting that one of the leading causes of the export decline is higher prices compared to last year and the past few years. In Jul-23, the average export price for these products stood at USD 3.12 per kilogram (kg), 25% above Jul-22 levels and 7% above the July average in the past five years.

There's a clear negative relationship between the quantity exported and the average price. Last year, in July, Korea exported 72.8 thousand mt of HS code 03 products, the highest level from 2018 through 2023. In the meantime, the average price stood at USD 2.51/kg, its lowest level for a July in the same six-year period.

Source: Tridge and Korea customs

In terms of value, lower exports of frozen whole fish (HS code 0303) drove the bulk of the decline. The YoY losses of this subtype amounted to USD 49.2 million (-45% YoY), over 80% of total HS code 03 losses (USD 59 million).

The main drivers behind the decline in HS code 0303 products were lower exports of cod, Pacific salmon, and Alaskan pollock, which comprised over half of the losses.

South Korean pollock exports have plunged considerably this year, 98% down from the past year. At the same time, South Korean imports of this product, which are mainly from Russia, have also fallen considerably.

As reported in past Tridge analyses, South Korea’s imports of frozen Alaska pollock from Russia had been growing considerably since 2021, as China – which was Russia’s main importer of this product – closed down ports due to pandemic restrictions. South Korea also became a re-export hub for this product. Nonetheless, as China lifted the bulk of pandemic restrictions this year, Russia has redirected most of its seafood to China, limiting Korean imports and re-exports.

It’s worth remembering that while HS code 03 exports from Korea have fallen considerably so far this year, this is not the case for Korean seaweed exports, which were experiencing records in H1 2023.