South Korea 2019 Export Highlights
Top 10 U.S. Agricultural Exports to South Korea(values in million USD) |
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| Commodity | 2015 | 2016 | 2017 | 2018 | 2019 | % Change 2018-2019 |
5-Year Average 2015-2019 |
| Beef & Beef Products | 811 | 1,071 | 1,220 | 1,746 | 1,842 | 5% | 1,338 |
| Pork & Pork Products | 472 | 364 | 475 | 670 | 593 | -12% | 515 |
| Prepared Food | 316 | 365 | 324 | 356 | 490 | 38% | 370 |
| Fresh Fruit | 374 | 389 | 490 | 491 | 405 | -17% | 430 |
| Soybeans | 223 | 227 | 295 | 327 | 396 | 21% | 294 |
| Corn | 648 | 865 | 705 | 1,356 | 358 | -74% | 786 |
| Dairy Products | 306 | 231 | 279 | 291 | 332 | 14% | 288 |
| Wheat | 309 | 248 | 329 | 363 | 296 | -18% | 309 |
| Tree Nuts | 354 | 296 | 305 | 290 | 290 | 0% | 307 |
| Soybean Oil | 37 | 67 | 207 | 209 | 255 | 22% | 155 |
| All Other | 2,178 | 2,060 | 2,240 | 2,212 | 2,262 | 2% | 2,190 |
| Total Exported | 6,028 | 6,183 | 6,868 | 8,312 | 7,519 | -10% | 6,982 |
Source: U.S. Census Bureau Trade Data - BICO HS-10
Highlights
In 2019, South Korea was the sixth largest destination for U.S. agricultural exports, which totaled $7.5 billion, a 10 percent decrease from 2018. Most of this decline was due to a 74 percent drop in corn exports, which were lower by nearly a billion dollars. The United States was South Korea’s top supplier of agricultural goods with 31 percent market share, followed by the European Union with 13 percent. The implementation of the United States-Korea Free Trade Agreement (KORUS) generated new opportunities for U.S. suppliers by reducing tariff and non-tariff barriers. Last year, the largest export growth was seen in prepared foods and beef and beef products, up $134 million and $95 million, respectively. Additionally, U.S. exports of soybeans, rice, and feed and fodders grew by $69 million, $46 million, and $46 million, respectively. Exports of fresh fruits, pork and pork products, and wheat were also down $86 million, $77 million, and $67 million, respectively. In 2019 South Korea was the top market for U.S. soybean oil, fresh oranges, and fresh cheese.
Drivers
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South Korea is the second largest market for U.S. beef exports. Compared to Korean domestic beef, U.S. product is more competitively priced and closely aligned with local preferences for high marbling. Domestic production does not sufficiently cover demand driven by per capita consumption that has risen quickly in recent years.
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South Korea relies upon imports to fulfill its food needs and over the past few years South Korea has continuously increased imports of U.S. high-value consumer-oriented products. Much of this trade has benefited from price advantages resulting from KORUS.
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Record exportable supplies of corn from South America, along with a reduced U.S. crop in 2019, created sufficient price differentials that allowed competitors to capture U.S. market share in Korea.
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In 2018, South Korea imported record amounts of pork and pork products from the United States due to relatively low prices. High volumes of stored supplies and higher prices driven by China’s ASF outbreak, dampened South Korea’s demand in 2019.
South Korea's Agricultural Suppliers
Looking Ahead
South Korea remains one of the largest destinations for U.S. agricultural exports. The outlook for increasing trade values remains positive, given rising incomes and a growing economy, despite the economic headwinds of 2019. U.S. producers continue to realize the benefits of reduced tariffs by way of the KORUS Agreement. In December 2019, the United States and South Korea, along with four other WTO member countries, signed a plurilateral agreement regarding market access levels under South Korea’s WTO tariff-rate quota for rice. The agreement gives the United States record volumes of guaranteed rice market access in South Korea with an annual value of approximately $110 million. Negotiations regarding SPS issues continue to be held within established venues, including the KORUS SPS Committee, and are expected to further deliver progress in 2020.