Jeollanam-do Expands Support Including Financial Measures to Overcome Abalone Industry Crisis

Five Customized Support Measures Including Facility Reduction

Kim Youngrok, Governor of Jeollanam-do, announced five major policies to overcome the crisis in the abalone industry, including financial support and distribution innovation, at the provincial government briefing room on the 27th. Provided by Jeonnam Province

Jeollanam-do announced that it will implement sector-specific support measures, such as production volume management, financial support, and improvements to the distribution structure, in phases to help resolve the management crisis faced by abalone farmers. This crisis has been caused by falling abalone farm-gate prices, the accumulation of debt among fishing households, and a slowdown in consumption.

The province's abalone production volume has increased by 163% over the past ten years, rising from 8,887 tons in 2014 to 23,355 tons in 2024. This surge is the result of advances in seed production, aquaculture technology, and an increase in cage facilities. However, due to oversupply and reduced consumption, abalone farm-gate prices have dropped to about half of what they were during the same period, placing a heavier management burden on farming households.

Additionally, the average loan size for abalone farmers in major production areas is 120 million won, which is 1.6 times higher than the national average debt of fishing households (70.83 million won), intensifying their financial burden.

In response, Jeollanam-do is promoting five customized support projects: support for reducing abalone cage facilities, establishing a financial safety net for small-scale and low-income farmers, improving loan structures, supporting the localization and branding of abalone products, and creating a one-stop integrated hub center.

To alleviate abalone oversupply and stabilize farm-gate prices, the province plans to invest a total of 32 billion won over the next five years to gradually reduce 100,000 abalone cage facilities.

Specifically, as a pilot project this year, 1.5 billion won in local government funds will be used to support the dismantling and removal of facilities and waste disposal costs for farmers who wish to participate, encouraging voluntary participation. Going forward, the province plans to secure national funding to expand the scale of reduction.

A financial safety net will also be established to ease the management burden on abalone farmers. For small-scale and low-income farmers with annual sales of less than 500 million won and fewer than 300 cages, the province will expand credit guarantee support to 15 billion won, enabling them to access operating funds.

To reduce the loan repayment burden of abalone farmers, 2.5 billion won will be invested by 2030. The interest support period for policy fund loans will be extended from the current three years to five years, and the province plans to recommend to relevant ministries that the repayment period for current fisheries policy projects be uniformly extended from seven years to twenty years.

To promote abalone consumption and create demand, the province will pursue MOUs with leading Korean food companies. In the first half of next year, it plans to launch about 100,000 units of a premium abalone porridge (tentatively named 'OK Namdo Abalone Porridge') made with domestic abalone, replacing existing products that were made with imported abalone.

The province will also establish a one-stop integrated hub center equipped with functions for abalone auction, processing, sorting, storage, and logistics, in order to improve the distribution structure and support hygienic and stable large-scale sales. Jeollanam-do will also actively respond to the Ministry of Oceans and Fisheries' 2026 call for proposals for the Fishery Products Processing and Distribution Center (FPC) in production areas.

Governor Kim Youngrok of Jeollanam-do stated, "As the abalone industry is struggling due to oversupply and falling prices, we will swiftly implement the five customized support projects so that fishermen can feel the impact directly in the field."