The Food and Beverage Market Entry Handbook: South Korea
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1 | Page South Korea – Market Entry handbook The Food and Beverage Market Entry Handbook: South Korea: a Practical Guide to the Market in South Korea for European Agri-food Products 2 | Page South Korea – Market Entry handbook Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). This document has been prepared for the Consumers, Health, Agriculture and Food Executive Agency (Chafea) acting under the mandate from the European Commission. It reflects the views only of the authors, and the Commission / Chafea cannot be held responsible for any use which may be made of the information contained therein. 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The reuse policy of European Commission documents is regulated by Decision 2011/833/EU (OJ L 330, 14.12.2011, p. 39). 3 | Page South Korea – Market Entry handbook Contents 1 The Food and Beverage Market Entry Handbook: South Korea ........................................................... 9 1.1 How to use this handbook ............................................................................................................ 9 2 Country introduction and overview .................................................................................................... 10 2.1 Country overview: South Korea at a glance ................................................................................ 11 2.1.1 Past economic and political trends ......................................................................................... 11 2.1.2 Current economic situation and mid-term outlook ................................................................ 12 2.1.3 Populations trends .................................................................................................................. 13 2.2 Geography and key markets ....................................................................................................... 14 2.2.1 Overview of urban markets .................................................................................................... 15 2.2.2 Snapshots of important markets ............................................................................................ 17 3 Introduction to the food and beverage market and consumers ........................................................ 24 3.1 Overview of the food and beverage market and demand for imported products ..................... 24 3.1.1 F&B market summary ............................................................................................................. 24 3.1.2 International trade in F&B ...................................................................................................... 24 3.1.3 The market for imported F&B ................................................................................................. 26 3.2 Growth Drivers and Trends ......................................................................................................... 27 3.3 Consumer profiles and preferences ............................................................................................ 29 3.3.2 Cultural Sensitivities and Other Considerations ..................................................................... 31 4 Market access and entry ..................................................................................................................... 33 4.1 Summary SWOT analysis ............................................................................................................. 33 4.2 Food and beverage legislation and regulations .......................................................................... 34 4.2.1 Import requirements/restrictions, customs procedures and documentation ....................... 34 4.2.2 Food safety and other food certification requirements ......................................................... 39 4.2.3 Labelling Requirements .......................................................................................................... 40 4.2.4 Protection of intellectual property rights, including geographical Indications (GIs) .............. 44 4.2.5 Relevant authorities for IPR and GI protection and further contacts ..................................... 45 4.3 International trade ...................................................................................................................... 47 4.3.1 South Korea and foreign trade ................................................................................................ 47 4.3.2 Key trade agreements, present and future ............................................................................ 47 4.3.3 EU South Korea FTA ................................................................................................................ 48 4.3.4 WTO disputes and other trade barriers .................................................................................. 50 4 | Page South Korea – Market Entry handbook 4.3.5 Summary of key trade barriers ............................................................................................... 50 4.4 Operating in the South Korean food and beverage market ....................................................... 50 4.4.1 Logistical services and transportation infrastructure ............................................................. 50 4.4.2 Distribution ............................................................................................................................. 53 4.4.3 Business environment ............................................................................................................. 56 4.4.4 Key operational considerations and challenges: summary .................................................... 56 4.4.5 Other relevant information ..................................................................................................... 56 5 Market Snapshots for Selected Products ............................................................................................ 58 5.1 Fresh meat .................................................................................................................................. 59 5.1.1 SWOT analysis ......................................................................................................................... 59 5.1.2 Consumption ........................................................................................................................... 59 5.1.3 Offer ........................................................................................................................................ 62 5.1.4 Specific market entry requirements ....................................................................................... 66 5.1.5 Distribution ............................................................................................................................. 69 5.1.6 Challenges for EU products ..................................................................................................... 69 5.2 Dairy ............................................................................................................................................ 70 5.2.1 SWOT analysis ......................................................................................................................... 70 5.2.2 Consumption ........................................................................................................................... 70 5.2.3 Offer ........................................................................................................................................ 74 5.2.4 Specific market entry requirements ....................................................................................... 80 5.2.5 Distribution ............................................................................................................................. 81 5.2.6 Challenges for EU products ..................................................................................................... 83 5.3 Beer ............................................................................................................................................. 85 5.3.1 SWOT analysis ......................................................................................................................... 85 5.3.2 Consumption ........................................................................................................................... 85 5.3.3 Offer ........................................................................................................................................ 88 5.3.4 Specific market entry requirements ......................................................................................