Even Kimchi Yielding to China

Koreans` dinner table is getting filled with Chinese made dishes. Even kimchi, the most basic food of Koreans is being imported from China.

Moreover, Chinese Kimchi products are threatening Korean counterparts in Japan, which is one of the major kimchi markets of Korea. China is aggressively enlarging its market share with cheap price.

Experts worry that, if we fail to cope with the advancement of Chinese Kimchi, it could deal a severe blow to us in two respects: first, it could hurt Korea economically; on the other hand, foreigners will become accustomed to the taste of the Chinese kimchi, which would eventually lead them to avoid the original Korean kimchi.

▽ Increase of Chinese kimchi = Kimchi products made in China are inferior to ours in terms of taste. The former, however, is a lot cheaper than the latter. Therefore, the Chinese kimchi is making its way into a niche where a demand is for massive consumption such as catering and group dining.

Yesterday, Kwon Gi-gyun, president of Doctor Kimchi, a Korean corporation, said, "Now, people are not making, but buying kimchi. With the cheap price, China is intruding and securing its position in the Korean market."

Kwon also said, "China supplies its products for \850 (approximately 70¢) per kilogram to the wholesalers. On the other hand, Korean products are sold at double the price. Therefore, Korean makers are being threatened."

According to the Korea International Trade Association, importation of the Chinese kimchi products amounted to 330,000 dollar (90 ton) in 1999. The importation has increased year after year, so that in 2000, it was 177,000 dollar (467t), in 2001, 195,000 dollar (393t) and in this year, as of October, 263,000. In the three-year period, the volume has increased by 8 times.

▽ Damage to Korea`s overseas markets = The powerful advance of the Chinese kimchi is more threatening overseas. Most foreigners do not know what taste a kimchi product should have. In Japan, for example, the price of the Chinese kimchi is half of that of the Korean kimchi, selling for 200 yen per 400g. Most of Korean products, on the other hand, are sold for 398 – 428 yen.

Consequently, Chunbook Province, for example, has to watch its export of kimchi dwindled by 77%. This year, as of October, the province has exported $271,000 worth of kimchi products, whereas it exported more than one million dollar during the same period, last year. Exportation of kimchi to Japan has been declining: it recorded more than 77 million dollar (or 23,816t) in 1999, 76.5 million (22,261t) in 2000, and 65 million (22,200t) in 2001.

One senior member of the industry pointed out, "In 2-3 years, the Chinese kimchi will catch up with the Korean kimchi in Japan. It`s time to employ promotions activities about the unique taste and nutrition of the Korean products." Nonetheless, our government does not have concrete figures about how much Chinese products are being sold in Japan.

▽Bleeding competition between Korean companies = The manufacturing cost per one kilogram of kimchi was 3.43 for products shipped to Japan. In 2002, the cost has decreased sharply. Cha Woo-jin, a senior member of the industry, said, "More than half of the 80 Korean kimchi manufacturers are dumping their products in Japan. That is why the cost has been reduced."

Park Wan-soo, head of a research institute for developing new kimchi products, said, "Japanese buyers are asking for discounts. They talk about the Chinese products. Korean companies are having a hard time."

In July of 2001, Korea won a battle against Japan and succeeded in having the CODEX adopt kimchi, not the Japanese Kimuchi, as the standard food of its kind.

jameshuh@donga.com