1. Foreign Agricultural Service Seoul, Korea South Korea: Agricultural Situation October 22, 2009

2. Foreign Agricultural Service Seoul, Korea Geography  Size roughly equal to the state of Indiana  Only land border to the North; Surrounded by water on three sides  Mountainous with no extensive plains; only 16.6% arable

3. Foreign Agricultural Service Seoul, Korea Agricultural Production  Small farm size (3.7 ac)  1.2 mil farm households including 785,000 fulltime  Agriculture accounts for only 3.8% of GDP  Agricultural products: rice, root crops, barley, vegetables, fruit, cattle, pigs, chickens, milk, eggs and fish.

4. Foreign Agricultural Service Seoul, Korea Economy  2009 GDP could contract 2-3%  Exports: weak demand in major markets  Domestic Demand: weighed down by rising prices, fewer jobs, stock market volatility. Exports Main Pillar of Korean Economy U.S. Recession & Weaker Global Conditions

5. Foreign Agricultural Service Seoul, Korea Economic Performance

6. Foreign Agricultural Service Seoul, Korea Demographics  Homogeneous  50 million people  Population growth rate declining  One of the world’s most densely populated countries  Rapid urbanization  ¼ Christian, ¼ Buddist, ½ non- affiliated

7. Foreign Agricultural Service Seoul, Korea Consumption  Increased affluence  More women in the workforce  Well-traveled younger generation  Increased demand for international flavors  More western style family restaurants

8. Foreign Agricultural Service Seoul, Korea Retail Market Structure  Food Sales Traditional – 30.9% Hypermarkets – 26.5% On-line – 18.2% Dept. Stores – 17.5%  On-line sales growing rapidly, 23.8% growth.

9. Foreign Agricultural Service Seoul, Korea Trade  Top four trading partners: China, United States, Japan and Hong Kong  Major exports: semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel, ships and petrochemicals.

10. Foreign Agricultural Service Seoul, Korea Total Trade Vs. Agricultural Trade Agricultural Imports Represent 6% of Total Imports Agricultural Exports Represent 1% of Total Exports Total Imports Total Exports Total Agriculture, Fishery and Forestry Imports

11. Foreign Agricultural Service Seoul, Korea Agriculture: Exports  Main agricultural exports: leather, seafood, cigarettes, snack foods, noodles, beverages and kimchi.  In 2008, total value of ag exports $3.6 bil.  Represents 1% of total Korean exports.

12. Foreign Agricultural Service Seoul, Korea Agriculture: Imports  In 2008, South Korea imported $24.4 billion worth of agricultural products  28% from the U.S.  Main ag. imports: corn, wheat, hides, soybeans, hay, pork, beef and citrus

13. Foreign Agricultural Service Seoul, Korea Total Agricultural Imports Bulk & intermediate values up sharply in 2008

14. Foreign Agricultural Service Seoul, Korea Agriculture: Market Access U.S. Export Successes:  Record $6.1 bil in ‘08  #3 Beef  #4 Consumer-Oriented ($1.5 bil in ’08)  #4 Cheese Market  #7 U.S. Rice Market U.S. Export Challenges:  Biotech Approvals Documentation Labeling  Children’s Food Act No sale of high cal/low nutrition near schools Ban on tar food colorings  Organic: ROK Accreditation 2011

15. Foreign Agricultural Service Seoul, Korea Agriculture: Market Access Korea-U.S. Free Trade Agreement  Two-thirds of U.S. farm products become duty free immediately.  American Farm Bureau Federation predicts agreement, once fully implemented, could provide $1.6 billion in additional U.S. ag exports.  Supported by more than 40 U.S. agricultural and food associations.  http://www.fas.usda.gov/itp/us-koreafta.asp

16. Foreign Agricultural Service Seoul, Korea Resources  Attaché Reports at http://www.fas.usda.govhttp://www.fas.usda.gov Exporter Guide Retail Food Sector Brief Food and Agricultural Import Regulations (FAIRS) Briefs on organic sector, seafood, fresh cherries, avocados, honey, grapefruit, nuts, wine, apples, tomatoes, grain, citrus, potatoes, dairy, beef, pork, chicken, planting seeds, grapes, asparagus, etc.

17. Foreign Agricultural Service Seoul, Korea Thanks! www.FAS.USDA.gov www.ATOSeoul.com