As "Black Semiconductors" Jump Over 40%, Korean Government Unveils Emergency Measures for First Time in 20 Years

Ministry of Oceans and Fisheries to Resume Dried Gim Stockpiling After 20 Years
Rising Volatility in Fishery Production and Surge in Gim Exports
"Gim, the Black Semiconductor," Continues Its Price Rally

As the price of dried seaweed (gim) continues to soar, the Ministry of Oceans and Fisheries is planning to stabilize prices through supply and demand adjustments.

Kimbap is placed at the snack bar. Pixabay

On August 10, the Ministry of Oceans and Fisheries announced that the government is in discussions with the Ministry of Economy and Finance to introduce a stockpiling system. Under this system, the government would purchase and store gim when prices are low and release it into the market when prices rise significantly. This stockpiling system for dried gim was previously implemented from 1979 to 2006, but was discontinued due to reasons such as price crashes and quality deterioration. Now, with gim prices soaring 40% above the average this year, the government is seeking to resume stockpiling dried gim for the first time in 20 years.

This year’s budget for seafood stockpiling is 175.1 billion won. However, farmed seafood such as gim is not currently included among the stockpiled items. The Ministry of Oceans and Fisheries currently stockpiles only six popular fish species?Alaska pollock, mackerel, squid, hairtail, yellow croaker, and dried anchovies?as well as sun-dried salt. Last year, there were also calls to stockpile gim as its price was described as being "as expensive as gold," but the ministry stated it was not considering such a measure at that time. However, with the high price of gim persisting into this year, the ministry has shifted its stance and is now moving to introduce a stockpiling system for gim. Currently, it is negotiating with the Ministry of Economy and Finance to increase the relevant budget.

The Ministry of Oceans and Fisheries explained that the need to stockpile gim has increased because climate change has made fishery production more volatile, and a sharp rise in export volumes could lead to domestic supply shortages. Last year, poor gim production in China and Japan, combined with the K-food boom, caused a surge in Korea’s gim exports. As a result, the domestic price of dried gim soared, which in turn pushed up the price of seasoned gim. The ministry plans to stockpile gim at the Consumer Distribution Logistics Center currently being expanded in Naju, South Jeolla Province.

In addition, the ministry is considering expanding the range of farmed seafood products eligible for stockpiling. If farmed seafood other than dried gim is to be stockpiled, freezing technology will be required, so the ministry also plans to conduct research and development in freezing technology.

Meanwhile, according to data from the Korea Agro-Fisheries & Food Trade Corporation, as of August 8, the average retail price for a pack of 10 sheets of dried gim (medium grade) was 1,347 won, which is 41.5% higher than the average price of 952 won. The price of dried gim has been rising sharply since the spring of last year and has remained high for a year and a half. The average annual price for a pack of 10 sheets of dried gim was 1,019 won in 2023, 1,271 won last year, and has risen to 1,384 won this year.