Winners and Losers in the South Korean Seafood Import Market So Far in 2022

From January through August 2022, overall seafood (HS Code: 03) imports in South Korea reached 1.00 million mt worth $3.82 billion, up 16% year-over-year (YoY) in volume and 24% YoY in value.

The net YoY gain in import volume was 140 thousand mt. Fifty-nine countries registered a total increase of 179 thousand mt, while forty-three countries registered a total decline of 39 thousand mt.

Countries who profited most, with the largest net YoY increase included:

1. Russia, with 73% of all YoY gains (+131 k mt to reach 395 k mt in Jan-Aug 2022), increasing its share in the Korean market from 30 to 39%.

2. Mexico, with 9% of all YoY gains (+17 k mt to reach 43 k mt), increased its share in the market from 3 to 4%.

3. China, with 4% of all YoY gains (+7.5 k mt to reach 199 k mt), but decreasing its market share from 22% to 19%.

Meanwhile, the countries with the largest net YoY decline were:

1. Norway, with 25% of all YoY losses (-10 k mt to 57 k mt), decreasing its share in the market from 8% to 5%.

2. The United States, with 21% of all YoY losses (-8 k mt to 40 k mt), is decreasing its market share from 6% to 4%.

3. Taiwan, with 17% of all YoY losses (-6.5 k mt to 15 k mt), decreased its share in the market from 2.5% to 1.5%.

It's worth noting that most countries with the largest gains presented the lowest YoY increase (or even a small YoY decline) in the total import price, while most countries with the largest losses presented the highest YoY increase in total import price. Seafood is one of the food products with high elasticity in South Korea.

In fact, among the top 15 seafood suppliers, most countries confirmed a strong relationship between price and volume exported to Korea. Only 3 exporters (of the 15 top suppliers), Peru, Chile, and Thailand, deviated from the common pattern (similar YoY prices and increased exports to Korea).

Source: Tridge and Korea Customs

Regarding the products in detail, frozen whole fish (HS code: 0303) represented the largest amount of imports in terms of volume during Jan-Aug 2022, with 588 k mt. This figure represents a net gain of 25% or 117 k mt in YoY terms. Twenty listed products totaled a gain of 157 k mt, more-than-offsetting losses of 40 k mt from fourteen other products.

Contributing the most to gains were:

1. Alaska Pollock, with 71% of all YoY gains (+111 k mt to 239 k mt in Jan-Aug 2022), increasing its share among frozen fish from 27 to 41%.

2. Other Pacific Salmon, with 18% of all YoY gains (+28.5 k mt to 31 k mt), increasing its share from 1 to 5%.

3. Herrings, with 8% of all YoY gains (+13 k mt to 24 k mt), increasing its share from 2 to 4%.

And the products that lost more ground were:

1. "Other" frozen fish, with 46% of all YoY losses (-18 k mt to 149 k mt), decreasing its share from 36 to 25%.

2. Sardines, with 26% of all YoY losses (-10 k mt to 36 k mt), decreasing its share from 10 to 6%.

3. Mackerel, with 17% of all YoY losses (-7 k mt to 38 k mt), decreasing its share from 10 to 6%.

It’s worth noting that the Alaska pollock experienced marginal YoY change in its import price, and its imported volume rose sharply. Additionally, among the fifteen most imported products during the Jan-Aug period, pollock, which is widely consumed in Korea, had one of the lowest average prices. In contrast, products such as swordfish and mackerel experienced important increases in their import price, and their imported volume declined.