South Korea’s Trade Door Opens Wider : Despite protests by its farmers, the country is raising farm imports from the United States.
It was a week filled with contrasts:
On Aug. 29, a five-member South Korean delegation awarded a $2.36-million contract to Kolon California Corp. of Long Beach to export 700 metric tons of grain-fed American beef to the Asian nation.
Seven days later, dozens of South Korean farmers marched in protest outside a Seoul hotel, demanding the cancellation of an American food fair that they contended signals the U.S. invasion of South Korea’s agricultural market.
Despite the protest, the fair went on, with more than 60 American companies--at least half from California--displaying products approved for export to South Korea. Items ranged from jelly, wine and prunes to microwave popcorn.
At issue is the South Korean government’s recent decision to slowly open up its agricultural markets in a move to ease trade friction with the United States. Between now and 1991, the Agriculture, Forestry and Fisheries Ministry plans to remove restrictions on the import of 243 food items, including dairy products, duck meat and salmon.
U. K. Kim, deputy director of the Korea Trade Center in Los Angeles, sees increased agricultural trade as a two-pronged problem: Keeping both the American government and the Korean farmer happy.
“U.S. exports to Korea, particularly agricultural products, have been increasing remarkably in the past couple of years,” said Kim, whose center is an arm of the South Korean government. “On the other hand, in Korea, some 20% of the households are still living on the agricultural industry. . . . They are very afraid that the influx of foreign--particularly U.S.--agricultural products will topple the Korean agricultural industry.”
South Korea purchased $2.25 billion in U.S. farm products in 1988, becoming America’s second-largest agricultural customer after Japan. The volume is expected to increase 15% to 20% in 1989.
American beef is a major Korean import item and a rapidly growing one. According to Korea Trade & Business magazine, South Korea imported $83.18 million in American beef in the first four months of 1989, nearly double the $42.81 million imported in the same period in 1988.
Gap Kim is one man who is taking full advantage of the increase in South Korean beef imports; he plans to feed the nation as much as possible. Kim is purchasing general manager for Kolon California Corp. in Long Beach, an export firm that predicts $120 million in sales for 1989.
“In Korea, the population is more than 40 million,” Gap Kim said. “South Korea is five times smaller than California. The country lost its space for cattle farms. . . . We like to have beef every time we take food. And we like to buy more U.S. beef.”
Kolon California is a big part of the increase in South Korean beef importing. Its parent company--Seoul-based Kolon Group--plays a big part of South Korean business in general. It was founded in 1954 and has more than 3,000 employees in nearly 25 overseas branches.
Last February, the Livestock Product Marketing Organization--a quasi-government body--awarded Kolon California a bid for 3,667 metric tons of grain-fed frozen beef.
“I sent out 199 40-foot refrigerator containers from Long Beach to South Korea--Pusan and Seoul--during March, April and May,” Gap Kim said. “In July, I shipped out almost 18 metric tons of steak and veal to Pusan.”
This month and next, Kolon California shipping containers will again leave Long Beach for South Korea--this time carrying 1,400 metric tons of beef, contracts awarded during August. Kolon won 66% of the contracts awarded during the Livestock Product Marketing Organization’s recent Midwestern swing.
“We are the biggest shipper of beef from the United States to South Korea,” Gap Kim said. “We’ve been getting support from Kansas and Nebraska, but we’d like to cover as many states as possible.
Right now, he said, Kolon California works with 15 U.S. meatpacking companies to ship beef to South Korea. But Gap Kim sees increased demand and plans to take advantage of that.
“In 1989, South Korea should import about 30,000 metric tons of beef,” he said. “In 1990, they will import almost twice as much. . . . We’d like to develop a relationship between more U.S. packers and ourselves. And we’d like to invest in packing companies to develop our own products.”
