Frozen Gimbap Heading for US Export
Rising Prices as Gim Production Declines and Exports Increase
Sajo Daerim's announcement of exporting three types of frozen gimbap?tuna gimbap, fried tofu burdock gimbap, and mushroom japchae gimbap?to the United States caused stocks of seaweed-related companies to fluctuate in the domestic stock market. The overseas expansion of frozen gimbap has led to forecasts that the already 'gold-priced' seaweed prices may rise further.
According to the financial investment industry on the 17th, CJ Seafood's stock price has risen about 115% since the beginning of this year. Sajo Seafood and Dongwon F&B stocks also increased by 64% and 41%, respectively. While the food and beverage sector index rose 29% amid the K-food craze, seaweed-related stocks showed an even steeper upward curve.
According to the National Statistical Portal of Statistics Korea on the 5th, seaweed prices last month rose 17.8% compared to the same month last year. This is the largest increase in 6 years and 4 months since January 2018. The sharp rise in seaweed prices is attributed to the growing popularity of seaweed and gimbap overseas, which has increased exports. As exports increase and domestic supply decreases, the price of raw seaweed, the raw material before processing, has risen. According to customs trade statistics, last year's seaweed export volume was 18,599 tons, a 12.4% increase from the previous year. Last year's seaweed export value surpassed 1 trillion KRW. Exports have continued to increase this year as well. The cumulative seaweed export volume from January to April increased by 9.4% compared to the same period last year.
Researcher Park Eun-jung of Hana Securities explained, "Last year, exports of Korean processed foods to the United States recorded an all-time high," adding, "As gimbap's recognition overseas rises, demand for dried seaweed is also increasing."
Climate change affecting seawater temperatures has also impacted seaweed production in neighboring countries, influencing prices. According to the Korea Maritime Institute, last year's seaweed production was 149.7 million sheets, a 6.0% increase from 141.26 million sheets the previous year. As export demand grows, companies like CJ CheilJedang and Dongwon F&B have raised prices for seasoned seaweed. The price of Dongwon's flagship product, Yangban Perilla Oil Seaweed (4.5g x 20 packs), has surpassed 10,000 KRW.
CJ Seafood is a company that produces and sells fish cakes, seaweed, grilled fish, and more. It started its seaweed business in 2012 after merging with Woosung. In 2023, it acquired Samhae Sangsa, a company engaged in the seaweed business. Seaweed sales increased from 3.6 billion KRW in the first quarter of last year to 19.1 billion KRW in the first quarter of this year. Total sales in the first quarter of this year were 52.5 billion KRW, a 49.5% increase compared to the same period last year. Operating profit rose to 1.3 billion KRW, an increase of 11,612%. CJ Seafood participated in Samhae Sangsa's paid-in capital increase last month, investing 8 billion KRW. Samhae Sangsa plans to use the raised funds for loan repayment and operating expenses. With rising seaweed exports and domestic price increases, expectations for Samhae Sangsa's performance improvement are growing.
Sajo Daerim exports frozen gimbap to global markets including the United States. Since starting frozen gimbap exports in April, Sajo Daerim has shipped a total of 36 tons, combining the first and second initial shipments and additional orders. This corresponds to about 155,000 gimbap rolls. Sajo Daerim stated that by focusing on global trends, it will develop various products targeting overseas consumers and contribute to expanding the base of K-food. Sajo Seafood, a seafood processing and distribution company, produces and supplies Sajo Daerim brand products through original equipment manufacturing (OEM).
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