KOTRA "This Year K-Quarantine Exports Increase by 184%... Need for Country-Specific Customized Strategies"

[Asia Economy Reporter Suyeon Woo] KOTRA stated that exports of K-quarantine products such as domestically produced masks, hand sanitizers, and diagnostic kits have more than doubled compared to the previous year since the COVID-19 pandemic, emphasizing the need for country-specific export strategies.

On the 20th, KOTRA revealed this in the report titled 'Global Market Trends and Export Strategies for COVID-19 Quarantine Products.' According to the report, the export volume of K-quarantine products from January to August this year reached $3.3 billion, a 184% increase compared to the same period last year. As of the first half of this year, the global import market size for quarantine products also grew by more than 50% year-on-year, exceeding $145 billion.

Export Statistics by Item Compared to the Same Period Last Year (January to August 2020)
(Unit: Million USD) / Source: KOTRA, Korea Customs Service

The report introduced recent trends showing that many countries are raising non-tariff barriers on quarantine products based on their domestic production policies. In particular, demand for diagnostic kits is increasing mainly in emerging countries with insufficient testing infrastructure, mask supply has stabilized leading to a downward adjustment in international prices, and hand sanitizers are being imported from neighboring countries due to logistics cost burdens.

Additionally, the report advised that since the local situation varies by product category, it is necessary to target promising export markets accordingly. First, diagnostic kits are promising in Latin America and the Middle East, where Korean products have high recognition, as well as in India, where confirmed cases have recently increased. Masks should focus on Middle Eastern countries with a preference for Korean products and countries such as the United States, the United Kingdom, and Canada, where mask-wearing has become routine. For hand sanitizers, it is necessary to consider nearby regions such as China and Southeast Asia, where logistics costs are lower.

KOTRA will operate a 'K-Mask Intensive Week' for two weeks starting from the 2nd of next month to support the export of K-quarantine products. They plan to discover promising global buyers and conduct online consultations, as well as support sample shipping costs and local logistics expenses to enhance the price competitiveness of Korean products.

Kwon Pyung-oh, President of KOTRA, said, "K-quarantine represents South Korea's efforts to bring an end to COVID-19 and also presents an opportunity for our export companies," adding, "We urge our small and medium-sized enterprises to aggressively explore overseas markets together with KOTRA."