Rising Cabbage Prices Ahead of Kimjang Season... Government Launches 'Kimjang Task Force'

Autumn Cabbage Prices Slightly Rise, Expected 2,300~2,500 KRW per Head
Autumn Radish Stable at 900~1,250 KRW Each

Jongho Lee, Head of Hanul Nuclear Power Headquarters at Korea Hydro & Nuclear Power Co., Ltd., along with over 50 members of the Hanul Nuclear Power Plant Volunteer Group, made 1,500 portions of kimchi for love at Heungbu Market in Buk-myeon on the 24th, together with the Saemaeul Association of Uljin County. The kimchi was delivered to 300 households in need across 10 towns and townships in Uljin County. (Provided by Hanul Nuclear Power Plant) 2018.11.24 / News1

[Sejong=Asia Economy Reporter Kim Hyunjung] As prices of cabbage and radish rise ahead of the kimchi-making season, the government is activating the 'Kimchi-Making Task Force' to manage prices.

On the 28th, Statistics Korea announced the '2021 Autumn Cabbage and Radish Cultivation Area Survey Results,' reporting that the cultivation areas for autumn cabbage and autumn radish were 13,345 hectares and 5,918 hectares respectively. The autumn cabbage cultivation area decreased by 3.7% due to the price drop compared to last year's planting period, while the autumn radish cultivation area increased by 15.0% due to this year's price rise trend. Although there were changes in cultivation areas, the Ministry of Agriculture, Food and Rural Affairs, the relevant authority, expects the production volume of kimchi vegetables to be at a level that poses no supply and demand issues.

◆ Cabbage Prices Rise, Radish Stable... Peeled Garlic Becomes More Expensive = According to the Ministry of Agriculture, Food and Rural Affairs' estimates, this year's autumn cabbage cultivation area is 11,893 hectares, 7% less than the average year, with crop conditions expected to decrease by 0.9% and production volume to decrease by 8% to 1.18 million tons. Although soft rot disease appeared mainly in the Gangwon and Chungcheong regions where early planting before September is common, other major production areas like Jeonnam showed good conditions, so crop conditions are expected to remain at average levels.

Autumn radish is projected to be around 380,000 tons, 2% less than average, but due to overproduction of highland radish in summer, prices were low in October, leading to a decrease in October shipments of autumn radish and an increase in shipments in November and December compared to average years.

Prices for autumn cabbage are expected to slightly rise due to decreased production, with wholesale prices in November and December forecasted at 2,300~2,500 KRW per head, slightly above average. Autumn radish prices are expected to be set at 900~1,250 KRW each, lower than average.

For seasoning vegetables like dried red pepper and peeled garlic, dried red pepper production is expected to increase by 11~13% to about 78,000~80,000 tons compared to average, while peeled garlic production is expected to decrease by 5.3% to about 310,000 tons. Due to increased production, dried red pepper wholesale prices in November and December are expected to fall by 5~6% to about 10,500 KRW per 600g, whereas peeled garlic prices are expected to fluctuate around 7,800 KRW/kg, up 21% from average due to decreased production.

For a four-person household, the kimchi-making scale is 22.1 heads, similar to last year's 21.9 heads, but 3.2% less than the average of 22.8 heads (Korea Rural Economic Institute survey from October 7 to 12). The kimchi-making season starts in early November in Gangwon and northern Gyeonggi regions and ends in late December, with 32% concentrated in late November and 30% in early December.

Yearly Trends in Autumn Cabbage and Radish Cultivation Area (Source: Statistics Korea)

◆ Government Activates Kimchi-Making Task Force... Increasing Market Supply and Promoting Discount Events = The government plans to operate the Kimchi Vegetable Supply Stabilization Task Force jointly with related agencies from December 1 to December 20 to comprehensively monitor and manage the supply situation of kimchi vegetables.

The Ministry of Agriculture, Food and Rural Affairs, Rural Development Administration, NongHyup, Korea Agro-Fisheries & Food Trade Corporation (aT), and Korea Rural Economic Institute (KREI) will form three teams: overall management, field guidance, and market response. They will conduct daily checks on supply status and price trends by item and promptly address any obstacles. The National Agricultural Products Quality Management Service will focus on cracking down on fraudulent distribution activities such as false origin labeling of seasoning vegetables and imported kimchi.

To ensure stable supply, cabbage market shipments from late November to early December will be expanded by 1.37 times compared to normal periods. In case of supply instability, the government will supply 3,000 tons from reserves and 3,500 tons from shipment control facilities to the market, and additional quantities will be supplied under the vegetable price stabilization system. Radish, red pepper, and garlic reserves will also be supplied if supply instability occurs. Additionally, from November 11 to December 8, discount coupons for agricultural and livestock products will be used to offer a 20% discount on kimchi vegetables and pork at large supermarkets and traditional markets. The discount limit will be increased by 10,000 KRW compared to last year (from 10,000 KRW to 20,000 KRW), and traditional markets will see the discount rate expanded from 20% to 30%. Homeplus, Lotte Mart, Hanaro Mart, GS Retail, and traditional markets will participate in this discount event.

Kwon Jaehan, Director of Distribution and Consumer Policy at the Ministry of Agriculture, Food and Rural Affairs, emphasized, "We will expand the supply of major kimchi ingredients that may see price increases to resolve supply instability during the kimchi-making season," adding, "We will also increase the discount rate on kimchi ingredients to reduce the burden on consumers."

This content was produced with the assistance of AI translation services.