Seaweed Shock: South Koreans Left Reeling as Prices Soar Despite Record Harvest
CJ CheilJedang Seaweed Snacks
Dried seaweed prices are rising rapidly despite handsome growth in production, leaving South Koreans confused as to what is behind the steep price hikes.
According to the Korea Agri-Fishery and Food Trade Corp (aT) on Monday, the wholesale price of dried seaweed, widely used to make kimbap, or seaweed-wrapped rice rolls, was 10,780 won ($8.1) per sog, which is Korea’s term that refers to 100 leaflets, on 30 August, up 59.4% from 6,764 earned a year earlier.
Retail prices rose 33.4% over the same period to 1,365 won per 10 pages.
Distribution industry officials pointed to the increased volume of exports to Japan as a possible reason, but government officials downplayed it, saying the increase in dried seaweed export volume to Japan was negligible compared to production volume.
According to the Ministry of Oceans and Fisheries, seaweed production so far this year has reached 149.7 million sog, up 6% from a year earlier.
Nevertheless, seaweed prices have steadily increased amid a lack of inventories.
Data from the Korea Maritime Institute (KMI) showed that the inventory of seaweed, known as gim or kim in Korean, was 33 million sog at the end of June, down 26.7% from a year earlier. The latest figure is 45.8% below the five-year average.
Exports Rise to Japan
Korea’s seaweed inventory is dwindling mainly due to increased exports.
Exports of dried seaweed in the first half of this year were 19,346 tonnes or about 55% of last year’s total exports of 35,446 tonnes.
Exports to Japan grew at the fastest pace.
According to the KMI, Korea’s dried seaweed exports to Japan in the three months from May were 2.89 million kilograms, up 33.1% from 2.17 million kilograms.
Export prices were $30.68 per kilogram in the May-July period, up 49.6% from $20.51 a year earlier.
The export value was $88.64 million, up 99.1% from $44.52 million.
The Ministry of Oceans and Fisheries said an increase in dried seaweed exports to Japan is not the only reason for higher domestic prices.
Japan’s import volume of Korean seaweed is only about one-fifteenth of Korea’s annual production of 150 million sog.
Global Popularity of K-Food
Food industry officials said the growing popularity of K-food around the world and the increase in frozen kimbap exports are also contributing to higher domestic seaweed prices.
Seaweed exports are expected to continue to increase.
In 2015, the Japanese government agreed to gradually increase its imports of Korean seaweed from 1.2 billion sheets in 2015 to 2.7 billion sheets by 2025.
Korea’s oceans ministry plans to create new seaweed farms equivalent to the size of 3,800 football fields, or 2,700 hectares, this year.
The “Black Semiconductor” of Korea
Dried seaweed is often referred to as the “black semiconductor” in Korea these days - a humorous reference to dark seaweed, the price of which has risen so high that seaweed exports are said to boost the Korean economy as much as semiconductor chips.
Analysts said the global craze for Korean food or K-food, including kimbap, also romanticized as “gimbap,” has led to a shortage of gim supply, driving gim prices higher.
The country’s exports of dried seaweed reached a record 1.03 trillion, or $790 million, in 2023, up 22% from the previous year, according to the Korea Customs Service.
Korea dominates the global seaweed market with a market share of 70.6% in 2022.