The rising popularity of Korean food has boosted kimchi exports to record levels, but many Koreans are choosing cheaper Chinese-made versions of the popular side dish over costly domestic options, leading to a trade deficit in kimchi, according to the Korea Customs Service and market observers, Monday.
Recent data from the customs service revealed that in the first half of this year, Korea’s kimchi trade suffered a deficit of $549,000. The country exported $83.8 million worth of kimchi, but imported $84.35 million.
The trade deficit persists despite Korea consistently setting annual kimchi export records, primarily to the United States and Japan. Last year, Korea exported a record 44,040 tons of kimchi, a 48.6 percent increase from 2019. The export value also rose from $105 million to $155.6 million during this period.
However, imports significantly exceeded exports, with most of the kimchi coming from China. Last year, Korea imported 286,545 tons of kimchi valued at $163.6 million, resulting in a trade deficit of $8 million.
Except for 2021, when leaked photos of a naked male worker inside a Chinese kimchi factory temporarily discouraged imports, Korea has consistently imported more kimchi than it 카지노 has exported each year since 2010. During this period, annual trade deficits have ranged from $3.66 million to $42.6 million.
In terms of trade volume, Korea has been importing more kimchi than it exports since 2004, with the annual deficit growing steadily from 37,777 tons in 2004 to 242,505 tons last year.
Korea’s higher kimchi imports are driven by the lower cost of Chinese kimchi compared to domestic production. In the first half of this year, the price of exported Korean kimchi was $3,513 per ton, while imported Chinese kimchi cost just $569 per ton — about one-sixth the price of Korean-made kimchi.
Due to the price gap, an increasing number of restaurants and food service companies in Korea are choosing Chinese imports over Korean kimchi. While most Korean consumers prefer Korean kimchi, businesses are opting for the cheaper imports to reduce costs.