[Opinion] Future Development Strategies for the Wando Abalone Industry Driven to the Brink

Wando's Abalone Industry Faces a Double Crisis
Oversupply and Economic Downturn Deepen Management Struggles
Urgent Need for Structural Reform and Sustainable Growth Strategies
Proposals for the Future: Production, Distribution, and Consumption

Shin Youngkyun, former Director of Economic Industry Bureau, Wando County

The abalone industry in Wando, which accounts for more than 80% of South Korea's total abalone production, is currently being pushed to the brink due to a 'double whammy' of plummeting prices and shrinking consumption. Continued oversupply and economic downturn are increasingly worsening the management difficulties faced by abalone farms.

As a result, there is a growing call to use the current crisis in the abalone industry as an opportunity to improve its structure and lay the foundation for sustainable growth. To this end, I would like to propose future development strategies for the Wando abalone industry from three perspectives: production, distribution, and consumption.

Abalone farmers in Wando express their distress, saying, "It's hard to even recover production costs." Ironically, however, one of the main reasons for the price collapse is the oversupply. Therefore, to resolve the issue, farms must first voluntarily reduce cage facilities and strive to maintain an appropriate production volume. In addition, technological efforts are needed to mitigate damage from high water temperatures caused by climate change.

During periods of high water temperature, cages should be moved to deeper waters or shading nets should be installed to suppress temperature increases. In the long term, it is essential to establish climate crisis response systems, such as introducing ICT-based smart aquaculture systems that monitor and control water temperature, dissolved oxygen, and other factors in real time, as well as strengthening marine environment prediction systems.

Furthermore, to reduce abalone mortality rates, it is necessary to develop disease-resistant breeds and establish systems that can respond quickly when diseases occur. Efforts to improve production efficiency are important, including developing and producing healthy, high-quality broodstock and introducing management technologies that minimize stress during the farming process.

Complex distribution channels and excessive intermediary margins are the biggest factors behind the crisis in the abalone industry. In response, the government should implement a stockpiling purchase system to address price collapses, and producers should establish a joint sales system through organizations such as fisheries cooperatives to create a producer-centered distribution structure at the production site and regain price leadership.

The self-help fund voluntarily created by farms is a key to changing the fate of the abalone industry. Therefore, it is essential to establish a dedicated organization for the self-help fund project, tentatively named the 'Abalone Industry Development Fund,' separate from existing abalone-related organizations. The legally qualified 'Abalone Industry Development Fund,' in accordance with the Agricultural and Fishery Self-Help Fund Act, should share production volume information to represent the interests of farms and play a role in abalone purchase and stockpiling to stabilize prices.

By establishing a joint brand for 'Wando Abalone,' achieving quality standardization and a premium image, and expanding both online direct transaction platforms and offline direct sales outlets, the industry must strengthen a direct supply system that bypasses intermediaries. Minimizing distribution stages and improving efficiency in this way will provide higher profits for producers and more affordable purchasing opportunities for consumers.

Abalone is mostly consumed live or used as a holiday gift, resulting in very limited consumption patterns. Therefore, to promote abalone consumption, it is important to diversify consumption forms by developing processed foods such as ready-to-eat meals and offering experience programs linked to tourism, as well as actively pioneering and targeting overseas markets.

To expand domestic demand, processed foods such as abalone porridge, abalone soy sauce marinade, and canned abalone should be developed to attract younger generations and single-person households. Exploring the rapidly growing meal kit and food service markets, or conducting experience programs linked to tourism and cultural resources, are also good strategies.

The export market, which is heavily dependent on Japan, should be expanded to Southeast Asian countries such as China, Vietnam, and Singapore. These countries tend to prefer live abalone, giving Korean abalone a competitive edge. Efforts are also needed to develop processed products tailored to European and North American markets and to pioneer new export markets. The government and local authorities should designate abalone as a strategic export item and provide active support for these initiatives.

The crisis in the Wando abalone industry is not just a problem for abalone farmers; it means that the survival of the entire population of Wando County is at serious risk. Therefore, based on the three proposals outlined above, the government, local authorities, farmers, and distributors must work together to overcome the current crisis and establish an important milestone for Wando County's economic development. By doing so, Wando County can secure sustainable growth engines and move toward a more hopeful future.