The volume of kimchi imports in the first half of this year reached an all-time high. As inflationary pressures have increased, demand for relatively inexpensive Chinese kimchi has risen, especially among restaurants. This year, due to abnormal weather conditions such as heatwaves and a delayed rainy season, the prices of raw materials like cabbage are inevitably increasing, which is expected to further heighten dependence on cheap Chinese kimchi imports.

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According to export and import trade statistics from the Korea Customs Service on July 23, kimchi imports in the first half of this year totaled $93.79 million (approximately 130 billion won), an increase of 11.2% compared to the same period last year ($83.24 million). If this trend continues, the annual import record is highly likely to surpass $200 million for the first time ever, setting a new all-time high. The import volume also reached 163,148 tons, up 10.1% from the same period last year, making it almost certain that the annual import volume will exceed 300,000 tons for the second consecutive year.

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However, kimchi exports remain sluggish. As of June this year, kimchi exports amounted to $83.24 million (approximately 115 billion won), a decrease of 0.7% compared to the same period last year ($83.81 million). While imports increase every year, exports have stagnated, further widening the kimchi trade deficit. In the first half of this year, the kimchi trade deficit reached $10.54 million (approximately 1.5 billion won), a significant increase compared to the same period last year ($540,000).

The widening kimchi trade deficit is due to increased imports of inexpensive Chinese kimchi, as the burden of raw material prices has grown amid recent price hikes. Chinese kimchi is mainly consumed in restaurants rather than households. Virtually all kimchi imported into Korea is from China, and the price gap compared to domestic kimchi is significant, so demand for imported kimchi is rising especially among restaurants with high consumption.

In fact, the burden of kimchi prices is far outpacing average inflation. According to the Statistics Korea Consumer Price Survey, last month, the year-on-year inflation rate for kimchi was 14.2%. This is more than six times higher than the overall consumer price inflation rate of 2.2%. Kimchi prices have recorded double-digit growth rates for eight consecutive months since November last year.

This year, abnormal weather conditions such as early heatwaves, extreme heat, and heavy rainfalls have inevitably disrupted the growth of agricultural products, increasing the cost burden of kimchi raw materials.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) Agricultural and Fishery Products Distribution Information (KAMIS), as of the 21st, the price of one head of napa cabbage was 5,240 won, a sharp increase of 44.7% compared to one month ago (3,621 won).

This price is also 9.1% higher than the average price (4,804 won). Besides napa cabbage, young radish leaves cost 3,981 won per kilogram, up 56.4% from one month ago (2,545 won), and radishes are priced at 2,553 won each, 22.9% more expensive.

The rising trend in the prices of raw materials such as cabbage and radish is expected to continue for the time being.

According to the Agricultural Outlook Center of the Korea Rural Economic Institute, the shipment volume of cabbage this month is expected to slightly decrease compared to the previous year due to delayed growth caused by recent high temperatures and drought, as well as some disease occurrence.

Regarding summer cabbage, growth was similar to last year until mid-June, but due to high temperatures after mid-June, there are concerns about future growth stagnation, and a price increase is anticipated.

The government has also begun to address cabbage supply issues. The government has secured 35,500 tons of cabbage from available supplies and plans to release 100 to 250 tons of reserve cabbage per day into the market if summer cabbage supply becomes unstable due to abnormal weather. The amount released by the government is equivalent to 25% to 50% of the average daily volume entering Garak Market. In addition, the government has prepared 2.5 million reserve cabbage seedlings to respond to crop loss and damage, and will provide pest control agents to minimize damage from diseases and pests.