South Korea’s agricultural export value for farm produce and food products has risen by 3.4% in 12 months ending Q1, 2024, to $2.27 billion.

Data by the Ministry of Agriculture, Food and Rural Affairs links the improvement to high export growth to Western destinations. Shipments to the U.S. grew by 14.2%, to $352 million while those to Europe soared by 27.4%, to $166 million.

There was also slight growth of 3% to southeast Asian markets, which generated the highest aggregate revenue of $464 million.

Japan remained the second biggest single market worth $329 million, albeit with a year-on-year quarterly decline of 7.6%. 

The bestselling items were instant noodles, which hiked by 30.1%, to earn $270 million between January and March 2024. 

Processed rice rose by 34%, to reach $61 million while snack goods’ exports grew by 6.3%, to $165 million.

Ripple Effect from other Sectors

Despite this remarkable growth, there was decline to some markets due to geopolitical reasons and restrictions in other industries.

The repression of semiconductor exports to the U.S. by Korea-owned firms operating in China shifted some costs to agricultural exports.

Besides, trade curbs by China on key minerals such as graphite have also disrupted cross-industry supply chain profits. 

However, Korea now banks on eco-friendly exports, which include cars, to grow its export base. Eco-friendly car shipments upped by 50% in 2023 and could reduce the cost burden on other industries like agriculture.

Uptick Agricultural Trade with U.S.

Luckily for South Korea, the United States remains its single biggest agricultural base, with reciprocal economic benefits.

Tariffs are now waning, unlike 2010 when the United States levied Korean agricultural goods 9% levy. Korea, in its part, imposed 54% on in-bound American farm goods.

Exports of agricultural goods from the U.S. to Korea also manifest the same yearly growth as agricultural imports from Korea. In 2021, for instance, American beef exports to Korea gained 39% worth $2.383 billion, while corn appreciated by 57%.

Other American agricultural exports experiencing growth to Korea between 2020 and 2021 include pork, wheat, food preparations and ethanol. These have grown by 23%, 40% ,18% and 102%, respectively between 2020 and 2021 market years. 

Seoul, on the other hand, mainly exports fisheries products, forestry products, corn, rice, and food preparations to the United States. 

Thus, as South Korea’s agricultural exports register growth, so are its key markets reciprocating in equal measure.