Government aims to bolster gim supply amid boom in exports

As the price of Korean staple gim (dried seaweed) took a steep surge due to booming exports, the government stepped in to reign in the soaring prices with a supply stabilization scheme.

Seaweed, feedstock for processed gim (dried seaweed) products, is harvested from an aquaculture farm in Sinan County, South Jeolla, on Jan. 26. [NEWS1]

As the price of Korean staple gim (dried seaweed) took a steep surge due to booming exports, the government stepped in to reign in the soaring prices with a supply stabilization scheme.

The plan involves expanding seaweed production by 3 percent through an additional 2,700 hectares (6,700 acres) of new farming sites, according to the Ministry of Oceans and Fisheries on Thursday.

The latest expansion plan has been ramped up from the ministry’s previous announcement in March to develop seaweed aquaculture sites measuring 2,000 hectares.

The Fisheries Ministry cited growing exports for the upped figure. In 2023, gim exports surged 18.8 percent from a year prior to a record of $648 million, partly driven by rising demand from emerging markets.

Seaweed yields this year are expected to exceed the usual volume. Yields of seaweed used for gim production increased 6.1 percent on year from October last year to April, according to the ministry. Upon the completion of the harvest in May, gim production is expected to grow more than 5 percent from last year.

However, as the surge in gim exports brought down domestic inventory below the usual level, the wholesale price has been soaring as of late, weighing down on both consumers and gim product manufacturers.

The wholesale price of gim stood at 10,440 won ($7.60) per 100 sheets on Wednesday, up 57.8 percent from a year prior, according to the latest data from the Korea Agro-Fisheries & Food Trade Corporation. The retail price, which came in at 1,224 won per 10 sheets, rose 21.1 percent during the same period.

The consumer price of gim increased 6.6 percent on year in March, following a 3.1 percent jump in February.

In order to ensure a stable supply, the Fisheries Ministry will finalize the development plans drafted by each region for new seaweed farms totaling 2,700 hectares in surface area in April, and grant licenses for aquaculture operations in July. The production of regular gim at the sites will span from December this year to May next year.

For manufacturers of processed gim products, the government has already handed out financial support worth 4 billion won in loans, and plans to provide additional aid in line with market demand.

Moreover, the ministry will lower the tariff levied on a certain amount of imported gim products until the expansion takes effect.

“Ensuring stable production is crucial in order for Korean gim products to secure a leading position in both domestic and global markets,” said Fisheries Minister Kang Do-hyung, vowing to “smoothly implement the stabilization plan and continue to manage the situation so that the public will be able to consume gim without any burden.”

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]