FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday,  June 6,  2025

For Coverage:  May 30  ~  June 6,  2025

Agricultural and fishery food exports to the U.S. from Jeollanam-do Province exceed $50 million 
https://www.yna.co.kr/view/AKR20250604081500054?section=economy/economic-policy
Jeollanamdo-do Province announced on June 4^th that its agricultural and fishery food exports to the United States reached $53.37 million as of the end of April, a 33.8% increase from the same period last year.  This accounts for 19.5% of Korea’s total agricultural and fishery food exports ($274.24 million).  By item, exports of dried seaweed to the U.S. surged by 35.2% year-on-year to $38.45 million, and additionally, exports of functional beverages containing aloe vera, pears and onions, as well as traditional fermented foods including kimchi and Korean sauces, have been steadily increasing in line with the growing trend toward health-conscious consumption.

Forest industry sales in 2024 expected to reach 148.7 trillion KRW 
https://www.nongmin.com/article/20250602500665
According to the Forest Service’s forestry statistics released on May 30, the total sales of the forest industry last year were recorded at 148.7 trillion won, an increase of 2.5 trillion KRW (1.7%) compared to the previous year (146.2 trillion KRW).  By sector, wholesale, retail, and transportation of forest products accounted for 63 trillion KRW, and processing and manufacturing of forest products made up 48 trillion KRW, together comprising over 70% of the total sales.  This was followed by forestry industry support services at 17 trillion KRW, forestry industry input materials at 11 trillion KRW, and forest product production at 6 trillion KRW.

May consumer prices rise 1.9%… First time in five months staying in the 1% range 
https://www.donga.com/news/Economy/article/all/20250604/131742071/1
The consumer price inflation rate fell into the 1% range for the first time this year.  Although food prices such as livestock products, seafood, processed foods, and dining out continue to soar, the decline in prices of vegetables, fruits, and petroleum products contributed to the overall slowdown.  According to the Consumer Price Trends report released by Statistics Korea on the 4th, the consumer price index for last month was 116.27, marking a 1.9% increase compared to the same month last year.

South Korea should diversify its trade through joining the CPTPP 
https://www.nongmin.com/article/20250602500667
Amid signs that the global supply chain is being reshaped due to the tariff war initiated by the U.S., a think tank in the United States has raised the argument that South Korea should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to diversify its trade, attracting attention.  Within the political sphere, there is also a growing sentiment to consider either a Korea-Japan Free Trade Agreement (FTA) or joining the CPTPP to improve relations with Japan, raising expectations that such discussions could be revived under the new government.

Reduced consumption… Half of it blamed on aging population 
https://www.hankyung.com/article/2025060190471
An analysis has revealed that about half of the decline in private consumption over the past decade is due to population decline and aging.  In a report titled “The Impact of Demographic Changes on Consumption Slowdown” released on the 1st, the Bank of Korea stated that the average annual growth rate of private consumption from 2013 to 2024 was 2%, which is 1.6 percentage points lower than a decade ago.  Among this, the impact of demographic changes accounted for 0.8 percentage points. More specifically, changes in medium- to long-term income conditions reduced consumption growth by 0.6 percentage points, while a decline in the average propensity to consume lowered it by 0.2 percentage points.

KCS publishes checklists for food products in response to U.S. non-preferential rules of origin 
http://www.foodnews.co.kr/news/articleView.html?idxno=113508
The Korea Customs Service (KCS) announced that it has released a collection of cases detailing “non-preferential rules of origin”, focusing on actual cases, to assist food export companies in responding to the U.S. non-preferential origin determinations, which impose reciprocal tariffs on K-food exports to the United States.  The “non-preferential rules of origin” are the United States’ own standards applied to recent mutual tariffs, and since there are no explicitly stated criteria, even products previously exported as ‘Korean-made’ could be classified as ‘third-country origin’ under these criteria, potentially subjecting to high tariffs.  For this reason, the KCS said that it has provided this released collection of cases to relevant food exporters, emphasizing the need for special attention.

Momentum grows for discussions on adjusting tariff quotas and tariff-rate quotas (TRQs) as series of amendment bills are introduced 
https://www.nongmin.com/article/20250530500581
A recent audit by Korea’s Board of Audit and Inspection revealed that the government hastily increased tariff-rate quotas (TRQs) on items like garlic and onions without proper review procedures, sparking public and political concern.  In response, lawmakers have introduced bills to legally strengthen producers’ roles in TRQ and assigned tariff decisions by requiring greater representation in relevant policy committees and granting them input on import decisions.  Leading presidential candidate Lee Jae-myung has also pledged to gradually grant producer groups control over import quota distribution, though opinions within the agricultural sector remain divided on this proposal.

Even bank of Korea's 0.8% growth forecast seen as optimistic… Some project only 0.3% growth for South Korea this year 
https://www.yna.co.kr/view/AKR20250601044500002?section=economy/all
Global investment banks and major institutions are increasingly pessimistic about South Korea's 2025 economic outlook, with over 20 forecasting growth in the 0% range, and the average growth forecast dropping to 0.985% from 1.307% in just four weeks.  Notably, Société Générale projected only 0.3% growth—less than half of the Bank of Korea’s revised 0.8% forecast—while other institutions like Citi, ING, and JPMorgan also predicted growth below 0.8%.  Although a few institutions, including Morgan Stanley and Barclays, slightly raised their outlooks, most cuts reflect concerns over weak domestic demand and potential export declines due to U.S. trade policy.

U.S. calls for easing of non-tariff barriers on 30-month-old+ beef, LMOs, and map exports 
https://www.yna.co.kr/view/AKR20250530149000003?section=economy/all
The U.S. is pressing South Korea to ease agricultural-related non-tariff barriers, particularly the long-standing restriction on importing U.S. beef aged over 30 months and regulations on genetically modified organisms (LMOs).  These demands have raised concerns among Korean farmers and consumer groups over food safety and domestic agriculture protection.  As trade talks progress, experts suggest the Korean government carefully balance these U.S. requests with protecting national agricultural interests while using the negotiations to seek reciprocal benefits in other sectors.

Unseasonably high temperatures cause ‘Lumpy Skin’… Warning sounded for new vector-borne disease 
https://www.nongmin.com/article/20250528500611
Climate change has a significant impact on the livestock industry.  Especially as the Korean Peninsula shifts to a subtropical climate, vector-borne animal diseases are becoming more rampant.  This is because the populations and activity levels of mosquitoes, ticks, and other vectors that suck livestock blood and transmit infectious diseases are increasing.  Lumpy skin disease and African swine fever (ASF) are representative examples.

After the presidential election, the direction of the ‘import safety net’... Securing momentum remains a challenge 
https://www.nongmin.com/article/20250528500646
The “Agricultural Import Safety Insurance,” which was launched as a full-scale project this year, is expected to continue under the next government.  This is because both the Democratic Party and the People Power Party have mentioned import safety insurance as part of their pledges to strengthen the income safety net.  However, challenges remain for the stable expansion of the system, such as establishing a legal framework and building a system to accurately assess farm household incomes.