USDBC Completes Initial Assessment of Korean Market

USDBC’s Jeff McNeill with Mr. CH Kim, Executive of the Korean Bean Paste Industry Cooperative, Mr. ST Kim President of Root Foods, and Mr. KH Ahn, Korea Agricultural Trade Consultant

Given the strong trade and cultural ties between our two nations, an FTA (KORUS) in place, and an interest in importing high quality U.S. agricultural products, USDBC conducted an initial assessment of the Korean market.  USDBC met with four of the main dry bean importers/end users as well as the U.S. Agricultural Trade Office (ATO) in Seoul to determine market size, demand patterns, and potential for future imports of U.S. dry beans. According to Korean customs data, a total of 4,453 MT of U.S. dry beans were imported in 2017, primarily Kidney beans.  China is the largest supplier of dry beans to Korea, exporting around 25,000 MT/annually.  The primary use for imported dry beans in Korea is to make bean paste for baking and confection items.  The primary class of bean grown in Korea is the adzuki bean which they also import form the U.S. but in limited quantities as determined by a set tariff rate quota (TRQ) in the KORUS trade agreement.  Recently this TRQ has not been allowing for the import of any U.S. adzuki beans as it is taken up by another class of bean. While USDBC tried to address this issue with the U.S. ATO in Seoul, it is complicated and is going to require further discussion and follow up.

Beans at the Korean retail market E Mart in Seoul