NEWS LETTER Fresh Story Vol. 37 Jul 2021
1) Export and trade balance
From the beginning of the year to February 2021, news continued to report that kimchi exports in 2020 reached a record high and showed continuous growth over the past 6 years. Most articles attributed the significant growth in kimchi exports last year to the fact that kimchi’s effect of improving immunity was drawing attention during the COVID-19 pandemic.
From April to May, a number of articles reported that kimchi exports were also doing well this year. However, some articles pointed out that despite the upswing in kimchi exports, the kimchi trade balance still remains in the red. These articles seem to be a vital warning that we should not be satisfied and complacent with the world’s praise for kimchi and strong exports. By importing 280,000 t of kimchi in 2020, Korea relies on foreign countries for “13.7% of the total kimchi consumption in Korea and 35.8% of the commercial kimchi consumption” (2021 Food Distribution Almanac).
Table 1. News release — export and trade balance
| Date | Title | Media |
|---|---|---|
| Jan. 6 | Kimchi exports are the largest ever “Healthy food is gaining popularity due to COVID-19” | Dong-A Ilbo |
| Jan. 26 | The world is paying attention to the effect of enhancing immunity of kimchi… Continuous export growth for six years | JoongAng Ilbo |
| Feb. 8 | 2020 kimchi exports increased by 37.6% year-on-year, the largest ever | Segye Times |
| Feb. 12 | Korea, the origin of kimchi, kimchi trade balance has been in the red for 11 years | JoongAng Ilbo |
| Apr. 21 | K food in COVID-19 is hot… It’s the biggest export of kimchi in Q1 | The Korea Economic Daily |
| Apr. 21 | Reality of the origin of kimchi… Imports of 670,000 tons vs exports of 110,000 tons in Q1 | Maeil Business Newspaper |
| May 26 | Strong kimchi exports in 2021… Increase by 35 percent by April | Segye Times |
The positive point that lacked attention from domestic media in the first half was that the trade deficit of kimchi averaged USD 3.307 million per month in 2015 but fell sharply to USD 2.16 million (USD 25.91 million per year) in 2019 and USD 659,000 (USD 79.19 million per year) last year, recording an average monthly surplus of USD 2.967 million in the first five months this year (Figure 1). It is hoped that this trend will continue throughout the year, and the paper will be filled with news of the kimchi trade surplus this year.
Figure 1. Korea’s monthly kimchi trade balance (2015 and From 2019 to May 2021)
- World Institute of Kimchi, 86, Kimchi-ro, Nam-gu, Gwangju, 61755, Republic of Korea / TEL. +82.62.610.1700