Cabbage Prices Soar 55%... Government to Release Kimchi Companies' Reserves as Well

Releasing Reserved Stocks and Promoting Zero Percent Tariff Implementation

As the price of cabbage surged by about 55% in a year, the government plans to release reserved stocks to stabilize agricultural product prices and supply them to the market. It also intends to encourage the shipment of cabbages stored by kimchi manufacturers.

On the 13th, the Ministry of Agriculture, Food and Rural Affairs announced that it will release more than 200 tons per day from 11,000 tons of government-available stockpiles to prepare for supply shortages of cabbage and radish during the Lunar New Year peak season and winter.

Separately, the government plans to expand the supply of contract cultivation volumes through the Nonghyup. It will also work with the Ministry of Economy and Finance to apply a zero percent tariff quota on cabbage and extend the zero percent tariff quota on radish until the end of April.

Minister Song Miryeong of the Ministry of Agriculture, Food and Rural Affairs visited Domisol Foods on the 12th and had a conversation with CEO Park Mihui and Kim Chi-eun, President of the Korea Kimchi Association. Photo by the Ministry of Agriculture, Food and Rural Affairs

The Ministry of Agriculture, Food and Rural Affairs will also seek cooperation from local distributors and kimchi companies. Through shipment incentives, it plans to encourage each company to release stored quantities to the market.

In this regard, the ministry signed a business agreement with the Korea Kimchi Association, and Minister Song Mi-ryeong personally visited a kimchi company in Paju, Gyeonggi Province the day before.

Ingredients for kimjang, such as cabbage and radish, typically face supply shortages in winter. Since newly planted spring cabbage can only be harvested by mid to late April, only winter cabbage can be used until then. However, last year, cabbage demand reportedly increased due to various factors including a rise in kimchi exports.

On the 13th, napa cabbages were placed in a traditional market in Seoul. Photo by Yonhap News

According to the price information 'KAMIS' from the Korea Agro-Fisheries & Food Trade Corporation (aT), as of the 10th, the average consumer price of one head of cabbage was 4,928 won. This is more than a 55% increase compared to the same day last year (3,163 won). It is also about 31% more expensive than the average price last year (3,754 won). The price of radish also soared by 76% compared to last year, averaging 3,182 won on the same day, and rose 52% compared to the average price.