Related Stocks Surge Amid Concerns Over Contaminated Water Discharge
Government Says "Unrelated to Contaminated Water... Due to Weather"
"I bought 1 million won worth of 천일염 (sun-dried salt)."
"I stocked up on three sacks of salt. If I have extra money, I will buy more."
As the discharge of contaminated water from the Fukushima nuclear power plant in Japan approaches, concerns about seafood contamination are growing, and even salt hoarding movements are emerging. The above statements were actually posted on the Naver self-employed cafe 'Apeunikka Sajangida' (Because It Hurts, I'm a Boss).
A seller distributing Shinan 천일염 announced a notice about the 'price increase of 천일염' and informed that 'delivery is delayed due to increased volume.'
The price of 천일염 in the Shinan area, the largest production site, is rising daily.
According to Shinan County and related industries on the 6th, the recent price of Shinan 천일염 is traded at around 20,000 won per 20kg sack. 천일염 that was traded at about 14,000 won in early April rose to 18,000 won in mid-May and has now reached around 20,000 won this month. This means it has surged more than 40% in two months.
The salt warehouse laid bare. On the afternoon of the 5th, Park Hyung-gi (65), a salt worker, is looking at the completely empty warehouse in a salt warehouse in Jeungdo-myeon, Sinan-gun, Jeollanam-do. [Image source=Yonhap News]
The government-announced 천일염 production area price (based on 20kg) also rose 26.8% from 14,119 won in the first week of April to 17,807 won in the first week of June over two months.
Besides the issue of Japan's contaminated water discharge, news that this summer's monsoon will be long is adding to the acceleration of hoarding movements.
On online cafes, posts have appeared saying, "Since early last month, wholesalers have been stockpiling salt."
Salt-related stocks also surged... Government says "Unrelated to contaminated water... due to weather"
On this day, Insanga, classified as a salt-related stock in the KOSDAQ market, closed at 2,550 won, up 28.01% from the previous trading day.
Food company Insanga's main product is 천일염. The stock price even rose to 2,585 won during the session. The market views that the anxiety among domestic consumers as Japan's contaminated water discharge operation enters the final countdown has influenced the stock prices of salt and related food products.
On the 7th, interest in sea salt surged following Japan's plan to discharge contaminated water from its nuclear power plant, leading to hoarding behavior. Salt is being sold at a large supermarket in Seoul. Photo by Kang Jin-hyung aymsdream@
Meanwhile, the government recently stated that the recent rise in 천일염 prices is unrelated to Japan's contaminated water discharge and is 'due to the weather.'
The Ministry of Oceans and Fisheries released a press statement on the 6th, saying, "From April to May this year, the number of rainy days near Mokpo, the largest 천일염 production area, was 22 days, which is more than the average (15.6 days) and last year (8 days), creating an environment unsuitable for 천일염 production."
On the 7th, interest in sea salt surged following Japan's plan to discharge contaminated water from its nuclear power plant, leading to hoarding behavior. Salt is being sold at a large supermarket in Seoul. Photo by Jinhyung Kang aymsdream@
They added that the frequent rain reduced supply, and with expectations of heavy rain this summer, intermediate sellers who anticipated price increases are withholding supply, which is also considered a cause of the rapid salt price rise in a short period.
Regarding the Fukushima contaminated water discharge, they said, "Since April, radiation tests have been proactively conducted monthly on about 10 천일염 salt fields nationwide," and "No radiation has been detected in any salt field, and radiation testing will be significantly expanded from June to July."
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