Rising Overseas Popularity Drives Seaweed Prices Up 41%
Boosted by Strong Exports and Reduced Production
Affordable Food Gimbap Prices Also Up 8% in a Year
As the popularity of Korean Gim (seaweed) rises overseas, a shortage phenomenon has even emerged. This year, the price of Gim surged by 41% compared to the previous year. Although it has succeeded in exports to the extent that it earned the nickname "black semiconductor," there are concerns that it could put a burden on food prices.
According to the agricultural product distribution information from the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 18th, the wholesale price of one pack (100 sheets) of dried Gim surpassed 9,300 won as of the 15th. This figure represents a 41% increase compared to the same day last year and a 48.8% surge compared to the average price.
The surge in Gim prices ironically coincides with the success of Korean Gim. Last year, the export value of Korean Gim exceeded 1 trillion won, marking the highest export achievement ever recorded for a single seafood product.
Gim, which is made by spreading seaweed widely and drying it before processing it into food, is a specialty product dominated by three Northeast Asian countries: Korea, China, and Japan. Among them, Korean Gim enjoys high popularity, holding a 70% share of the global export market.
The success of Korean Gim was made possible by active exploration of export markets. It succeeded in exporting not only to countries already familiar with Gim such as China and Japan but also to regions where seaweed consumption is unfamiliar, including the United States, South America, and the Middle East.
Since the beginning of this year (black line), the price of one pack of Gim has been significantly higher compared to the previous year. [Image source=Agricultural Products Distribution Information]
According to data from the Ministry of Oceans and Fisheries, domestic Gim export value has increased by an average of 8% annually over the past 10 years, and the number of export countries nearly doubled from 64 in 2010 to 124 last year. Amid the overall slump in semiconductor exports last year, Gim was praised as the "black semiconductor" for its strong performance.
However, the explosive increase in demand for Gim has made its price as valuable as gold, which is a double-edged sword. There are concerns that Gim, once a familiar side dish for ordinary people, has become a factor driving up food prices.
Red seaweed disease that melts seaweed in fish farms. It often occurs when the water temperature rises and parasite reproduction becomes active. [Image source=National Institute of Fisheries Science]
To make matters worse, Gim production is on a declining trend. Due to abnormal climate conditions over the past several years, rising sea temperatures have increased the activity of pests and diseases in seawater, causing Gim to melt and disappear. In particular, the parasitic disease called "red spot disease" affecting Gim is also damaging farms. Production in the Jeonnam region, which accounts for 77% of the nation's Gim production, decreased by 11% last year, while Chungnam saw an 8% drop and Busan experienced a 31% plunge.
The rise in Gim prices is likely to affect familiar domestic foods such as Gimbap. The Gimbap Consumer Price Index compiled by the National Statistical Portal of Statistics Korea recorded 125.90 last year. This index measures how much the price of a specific item has increased over three years, with 2020 set as 100. It surged by 25% over three years and rose by 8.6% in 2023 alone.
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