Red-hot kimchi prices send Chinese imports to all-time high for first 5 months

Kimchi imports reached an all-time high in the first five months of the year, largely due to the rising domestic prices of kimchi and napa cabbage, prompting more buyers to opt for cheaper Chinese alternatives.

Kimchi [YONHAP]

Kimchi imports reached an all-time high in the first five months of the year, largely due to the rising domestic prices of kimchi and napa cabbage, prompting more buyers to opt for cheaper Chinese alternatives.

Korea imported 137,783 tons of kimchi from January through May, up 9.7 percent from the same period last year, according to data from the Korea Customs Service on Tuesday. The import volume also rose by 11.7 percent to $79.88 million. Both figures mark the highest-ever totals for the first five months of any year since records began in 2007. If the current trend continues, annual imports are likely to reach a record high as well.

Industry experts attribute the surge to increased raw ingredient costs driven by inflation, leading many restaurant operators to turn to Chinese kimchi, which is significantly more affordable. Chinese kimchi is primarily consumed in food service establishments rather than in households.

“Many restaurants that used to use Korean kimchi for side dishes and Chinese kimchi for stews are now switching entirely to Chinese kimchi to cut costs,” said Yoon Young-chae, manager at the Kimchi Association of Korea.

Statistics Korea’s Consumer Price Index showed that the price of kimchi rose 13.2 percent year-on-year last month, nearly seven times the overall inflation rate of 1.9 percent. Kimchi prices have posted double-digit increases for seven consecutive months since November.

Children smile while making kimchi at their day care center in Gwangju in December 2023. [YONHAP]

The primary driver is the sharp increase in napa cabbage prices, a key ingredient in kimchi. Though prices have stabilized recently, napa cabbage costs surged between 16 and 67 percent on year from last September to April due to abnormal weather, heavy snow and cold snaps that disrupted crop growth and supply.

A comparison of online prices at a mart popular among restaurant owners showed that Chinese kimchi sold for as low as 13,800 won ($10.14) per 10 kilograms (22 pounds), while domestic kimchi cost 40,500 won. At another retailer, A Food Mart, Chinese kimchi was 14,200 won per 10 kilograms, compared to 35,800 won for the Korean variety — suggesting a potential cost reduction of 60 to 65 percent when using Chinese imports.

A kimchi factory [YONHAP]

Given continued inflation and economic uncertainty, experts expect kimchi imports from China to remain high.

“The concern isn’t limited to kimchi manufacturers,” Yoon said. “The entire agricultural sector, including radish and napa cabbage farmers, could be affected, potentially destabilizing the foundation of Korea’s kimchi industry.

“The outlook for summer cabbage production is grim due to adverse weather,” Yoon added, calling for more proactive government measures to stabilize supply and demand.

“Stabilizing domestic napa cabbage prices is critical,” said a spokesperson for the Ministry of Agriculture, Food and Rural Affairs. “The government will support small kimchi producers in storing cabbage when prices are low and focus on managing summer cabbage supply.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY IM SOUNG-BIN [kim.minyoung5@joongang.co.kr]