Crispy Snack Gained Huge Popularity in the US... But Export Crumbles Under Tariff Hike

Jeonnam's Gim Exports Reach $100 Million, Accounting for 20% of Total
In March, Export Volume Drops to One-Third Amid Tariff Concerns
Local Companies Left Frustrated with Promotion Losses
Jeonnam Province "Closely Monitoring and Planning Support Measures"

Gim, a major export product from Jeonnam that has gained popularity in the United States, has seen a sharp decline in export volume after Donald Trump announced a tariff hike.

Seasoned seaweed is placed on a bamboo mat. Pixabay

As domestic gim continues to see high demand overseas and drives local government export markets, there are growing calls for urgent government policies to resolve tariff uncertainties and for local governments to prepare support measures.

According to Jeonnam Province and others on the 10th, last year gim exports from Jeonnam to the United States reached approximately $115.54 million, accounting for 19.9% of all agricultural and marine food exports.

As of February this year, exports have continued to be strong, totaling about $27.18 million, which is around 20% of the total. This figure is double the $14.76 million exported during January and February of last year.

Jindo Sea Area Seaweed Farm Overview.

However, Jeonnam’s gim processing companies are now facing a crisis after the U.S. government announced a tariff hike. On the 2nd, the U.S. government announced plans to impose a basic 10% tariff on all countries based on the International Emergency Economic Powers Act (IEEPA), and to levy additional reciprocal tariffs on major trade deficit countries such as Korea. Although the U.S. decided on the 9th (local time) to postpone the reciprocal tariffs for 90 days for countries around the world, the issue has not been fully resolved, and confusion is expected to continue.

Wando Seaweed by Saewoo Brand, "Wando Mulsan" Exterior. Courtesy of Reader

Choi Innyeong, CEO of Saewoopyo Wando Gim, which operates a gim processing factory in Naju, Jeonnam, producing seasoned and dried gim, lamented, "Due to the U.S. tariff hike, our gim exports have dropped to one-third of what they were."

Saewoopyo Wando Gim expanded its export channels to the U.S. starting in September last year. In the U.S., Chinese gim is considered low quality and Japanese gim is priced high, so gim from Wando, Jeonnam has become very popular. From the first shipment in September to December, the company exported gim worth 500 million KRW over four months.

During this process, CEO Choi also invested in promotions such as "1+1" deals and sampling events last year to raise awareness of Korean gim. Although these promotions resulted in losses, Choi explained that the investment was made with confidence in the popularity of gim in the U.S.

However, after Trump's tariff hike began, export volume plummeted in just six months. Saewoopyo Wando Gim, which had been exporting 200 million KRW worth of gim each month in January and February, only managed to export about 60 million KRW last month. Overseas buyers, concerned about Trump’s tariffs, requested only a third of the usual volume. Although the tariffs had not yet been finalized at that time, the time required for the goods to arrive in the U.S. was taken into account.

Promotion conducted by Saewoo Brand Wando Gim, which entered the US market last year. Courtesy of the source

Especially for food products, origin is important, so it is not possible to manufacture them in the U.S. itself. Even sourcing raw gim from Wando would be subject to tariffs from the outset.

CEO Choi said, "For food products, consumers are sensitive even to 1,000 KRW price differences. Especially since origin is important, if high tariffs are imposed, there is no way to overcome it. Not only has the investment in promotions gone to waste, but with U.S. exports at a standstill, we are missing the opportunity to promote Jeonnam’s gim to the world."

In this situation, Jeonnam Province is closely monitoring the impact of tariffs and plans to implement various support measures to expand gim exports. The province will invest a total of 7.21 billion KRW to strengthen the export competitiveness of gim and diversify markets. Of this, 3.75 billion KRW will be used to increase direct payment support rates for specialized agricultural and marine food export items, including gim.

Additionally, about 1.6 billion KRW will be allocated to support inland container shipping costs and export packaging materials for local agricultural and marine food exporters. In particular, safety inspection costs for heavy metals and other substances will be supported to strengthen gim exports.

An official from Jeonnam Province said, "If tariffs are imposed, agricultural and marine products could be hit hard, so we are closely monitoring the situation. Since consumer prices are expected to rise, we are also planning promotional support projects."