Trade deficit for kimchi tops US$77 mln last three years

By Lee Joon-seung
SEOUL, Oct. 20 (Yonhap) --South Korea's trade deficit for kimchi topped US$77.3
million over the last three years amid surging domestic demand for cheaper
Chinese imports, a report submitted to parliament said Monday.
The Agro-Fisheries Trade Corp. said in the report submitted to lawmakers for a
National Assembly audit that the country started posting a trade deficit for the
traditional side-dish in 2006, with the total expected to surpass US$40 million
by year's end.
In 2006, the deficit reached $17.6 million, with numbers jumping to $35.5 million
last year and reaching just under $24.2 million for the first seven months of
this year.
The report noted the deficit is mainly attributable to cheap Chinese imports that
make up 99.9 percent of all foreign-made kimchi.
Chinese imports surged 376 percent from $29.4 million in 2004 to $110.8 million
last year, while South Korean exports are just now starting to show signs of
winning back consumer confidence after parasite eggs were discovered in some
products in late 2005. Chinese made kimchi was also found to contain parasite
eggs at the time.
Kimchi, a spicy traditional side dish eaten with almost every meal, is made from
various fermented vegetables, including cabbage, radish and cucumbers, and is one
of the most recognized of all Korean foods.
The trade corporation also said that Chinese products are also making inroads
into Japanese, U.S. and Taiwanese markets, previously the main importers of
locally-made Korean kimchi. In Japan, Chinese products already enjoy greater
market share based on their price competitiveness and improved quality.
South Korea is a net importer of all agricultural goods with the deficit topping
$13.6 billion last year and $11.1 billion as of August of this year.