[News Today] Exporting rice to resolve oversupply?

[LEAD]
As rice prices soar in Japan, Korean rice is making its way into the Japanese market. While Korea is grappling with a surplus of rice, could expanding exports be the answer? We have the details.

[REPORT]
A Korean supermarket in Tokyo, Japan.

The market sells rice produced in Haenam-gun County in Jeollanam-do Province, Korea.

The rice is priced at about 9,000 won or around 6 dollars and 30 cents per kilogram, about twice the market price in Korea but still cheaper than Japanese rice.

Employee of Korean supermarket in Japan /
Are they selling well?
I found today that many bags were sold. I think they sell better than other rice brands.

When Japan imports rice, a tariff of 341 yen or around 2 dollars and 40 cents is imposed per kilogram.

But the price of rice nearly doubled in just one year, lowering the proportion of tariff.

Since Korea grows rice varieties similar to Japanese ones, higher prices of Japanese rice provided Korea with an opportunity to export rice to Japan.

Kim Sang-gil / VP, NH Trading
Rice is sold at JPY 1,000 per kg and a tariff of JPY 341 is only 34%. Apparently, the market isn't as sensitive to the tariff as in the past.

In addition to Japan, Korean rice is trying to enter the markets in the United States and Europe as well.

Out of 130,000 tons of rice sent out of the country last year, the actual rice export excluding aids, amounted to a record high of approximately 8,700 tons.

But Korea's rice import exceeded 450,000 tons, more than fifty times the export amount.

That's because Korea is mandated to import a certain amount of rice as dictated by a World Trade Organization agreement.

More than 200,000 tons of rice is left over every year. At the rate of current rice export, it's difficult for Korea to resolve the rice oversupply issue.

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