Fukushima water discharge deals blow to Korean fisheries

Japan's decision to release treated radioactive water from the Fukushima Daiichi nuclear power plant deals a critical blow to Korean fisheries as they face a supply glut and rising costs from price hikes in electricity bills.

Busan's iconic Jagalchi Market is empty on Wednesday, a day before treated radioactive water from the Fukushima Daiichi nuclear power plant is released. [NEWS1]

Japan's decision to release treated radioactive water from the Fukushima Daiichi nuclear power plant is dealing a critical blow to Korean fisheries as they face a supply glut and rising costs from price hikes in electricity bills.

Ever since the Fukushima nuclear disaster in 2011, any news related to the subject took a direct toll on Korean fisheries. Demand plummeted after the Fukushima nuclear disaster in 2011, and faced another crisis in 2013 when the Japanese government acknowledged that the contaminated water from the Fukushima nuclear power plant was leaking into the Pacific Ocean.

And since Japan lifted the barriers to release treated radioactive water from Thursday, fishers are forecasting a bleak outlook as consumer sentiment dwindles.

Ninety two-point-four percent out of 525 respondents from Consumer Korea’s survey replied that they will “cut down on seafood consumption once treated radioactive water discharges” in April.

Some worry that consumption cut will be prolonged as it seems like Japan will discharge its treated waters over the course of the next 30 to 40 years.

The ripple effect was clear from day one as treated radioactive water got discharged on Thursday. The second floor of a seafood restaurant near Busan’s iconic Jagalchi Market — which is usually reserved for tourists who come in packs — on the day was closed during lunch hour.

A seafood restaurant situated at Busan's Jagalchi Market sits empty on Thursday. [YONHAP]

On top of withdrawn consumer sentiment, workers are leaving the fishery market while costs are rising for electricity bills.

“Even foreigners, who were considered to be a rare gem in the workforce, are leaving one by one to work for construction sites," a 50-year-old marine distributor said.

“The monthly cost of electricity climbed to 2,900 won ($2.19) this year from 2,000 won last year,” a 55-year-old worker, who has been breeding flatfish on Jeju Island for 25 years, said. “Thirty percent of Jeju’s flatfish farms will go out of business within a year or two if demand falls.”

Excess supply is also leading fishers to declare bankruptcy.

Wando County in South Jeolla accounts for 75 percent of the total 20,547 tons of abalone produced nationwide. And 20 out of 675 fishery households in Nohwa island of Wando County recently went bankrupt. The island produces 32 percent of the total abalone supply in Wando County.

Abalone farms worth an average of 1 bilion won were on sale at half of the price.

“If the price of abalone falls below 20,000 won per kilogram, we cannot make ends meet,” said a fisher who’s been in the business for two decades. “Some fishers are struggling financially, not even being able to pay the interest on their loans. The market grew more difficult as supply surged after fishers in Chungcheong also began to raise abalones, and it’s been difficult to maintain the farm quality because seawater temperatures have surged.”

Abalones are cleaned before shipping at Wando County, South Jeolla, on Wednesday. [YONHAP]

The wholesale price of abalone was 29,000 won per kilogram between the period of Aug. 17 and Wednesday, according to the Korea Agro-Fisheries & Food Trade Corporation. The figure fell 15.8 percent on year and was 17.6 percent lower than the average price of 34,460 won over the last five years.

The Korean government said that it will do its best to revive the stagnant market.

The Ministry of Oceans and Fisheries initially planned a budget of 64 billion won this year, allocated to distribute discount coupons to consumers to promote spending, but asked the Finance Ministry for more money as the budget is likely to run out after next month’s Chuseok holiday.

The Korean government also set aside an additional 175 billion won to support the fishery market and spent 115 billion won to stimulate consumer spending. Government officials also met up with the Korea International Trade Association to request an increase in seafood provisions for companies’ cafeterias and to come up with ways to increase tourism in fishing areas.

“A total of 300 billion won will be spent to store seafood and encourage spending this year,” Oceans Minister Cho Seung-hwan said during a meeting for the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee on Thursday. “We plan to up the budget by 200 billion won next year.”

The National Federation of Fisheries Cooperatives released a statement on the same day that “it cannot guarantee the survival of local fishery businesses if retraction of consumer spending drags on.”

Fishers organize their gear at the port of Wando County, South Jeolla, on Wednesday. [YONHAP]

More corporations are lending a helping hand to the local market. HD Hyundai said that it will expand its seafood menus for in-house cafeterias. Rockfish tangsuyuk (Korean take on Chinese sweet and sour pork) and abalone are appearing as side dishes at 86 cafeterias of HD Hyundai.

“There are 55,000 people who come to eat at the cafeterias daily, so we expect that we’ll consume 100 tons of rockfish and abalones by the end of this year,” the company said. “That’s six percent of the total amount of rockfish and abalones supplied last month.”

CJ Freshway is also deliberating on ways to expand seafood menus in its cafeterias.

BY KIM MIN-SANG [lee.jaelim@joongang.co.kr]