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Exporting Fish and Seafood to South Korea

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Exporting Fish and Seafood to South Korea TRADE MARKET INTELLIGENCE SPECIAL REPORT: Exporting Fish & Seafood to South Korea TRADE MARKET INTELLIGENCE REPORT: EXPORTING FISH & SEAFOOD TO SOUTH KOREA SOUTH TO SEAFOOD & FISH EXPORTING REPORT: INTELLIGENCE MARKET TRADE October 2019 Disclaimer: All Rights Reserved No parts of this publication may be reproduced, distributed, rented, sub-licensed, altered or stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior permission of the owner and publisher, Nova Scotia Business Incorporated (“NSBI”). The information and facts of this report are believed to be accurate at the time of publication, but because of rapid changes in the market or other conditions, cannot be guaranteed. Please note that the findings, conclusions and recommendations that NSBI delivers are based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. These sources include subscribed and public databases, government and association websites, and other sources that have been referenced and sourced throughout the report. All information is provided “as is” without warranty of any kind, and NSBI makes no representations, and disclaims all express, implied, and statutory warranties of any kind to user and/or any third party, including but not limited to, the accuracy, timeliness, completeness, merchantability, fitness for any particular purpose and freedom from infringement. As such NSBI has no liability in tort, contact, or otherwise, to user or any third party, for actions taken based on any information that may subsequently prove to be incorrect. TRADE MARKET INTELLIGENCE With a research team of sector specialists with access to leading proprietary databases, TMI helps Nova Scotia companies access trade intelligence to help identify export opportunities specific to their products, services, and markets of interest. If you are interested in TMI for your company, please visit https://www.novascotiabusiness.com/TMI Report Overview This report provides an overview of the market conditions and export opportunities for fish and seafood products to South Korea. South Korea has one of the world’s highest levels of seafood consumption and relies heavily on imports. With the Canada-Korea Free Trade Agreement phasing out fish and seafood tariffs between the two countries, and with direct cargo connections between Nova Scotia, Seoul and Busan, the market is more accessible than ever. There are a variety of potential opportunities for Nova Scotian fish and seafood exports, from prepared lobster to the underutilized European green crab species. This report includes detailed information on the processes and regulations involved in selling to the South Korean market. This includes the major South Korean authorities involved in the process, business and facility registration, the Korean web-based customs clearance system, the Korean export risk classification program, important clearance procedures, common document requirements, inspection processes, quarantine process, certificates of origin, and other required certifications and standards. Information on importing samples for trade shows and client meetings, as well as guidance on labelling standards, has also been included. The report concludes with information on major trade shows in the market. YOU’RE READY. WE’RE HERE TO HELP. NSBI is dedicated to helping Nova Scotia companies enter and grow in markets around the world. Our team of sector and market specialists bring the intelligence and insights companies need to make informed export decisions. TABLE OF CONTENTS 1 Market Overview 5 Export Opportunities 7 Trade Regulations 18 Labelling 20 ���������������������������������������Events novascotiabusiness.com Market Overview The Republic of Korea, commonly Quick Facts About South Korea known as South Korea, is Canada’s 6th largest merchandise trading 1 Population: 51.6 million (2018) partner and the 3rd largest GDP: CAD$2.16 trillion (2018)2 partner in Asia, accounting for CAD$5.9 billion of Canada’s Currency: South Korean won (KRW)3 total goods exports in 2018.9 Exchange Rate: KRW 1 = CAD$0.001109 The Canada-Korea Free Trade (Sept 2019 Average)4 Agreement (CKFTA) entered into force January 1, 2015, eliminating Official Language: Korean5 and reducing tariffs on a wide variety of products. Most Korean Capital: Seoul6 tariffs on Canadian fish and Major Cities: Busan, Daegu, Daejeon, seafood products have been Gwangju, Incheon, Ulsan7 eliminated since 2017, with the rest being gradually phased out Top Social Media Platforms: KaKaoTalk, by 2026.10 Further information on 8 YouTube, Facebook, Instagram, KaKaoStory fish and seafood tariffs is available in the Trade Regulations section of this report. South Korea relies heavily on imports to satisfy national food requirements. Korean agriculture is constrained by a limited amount of arable land and the local fisheries are unable to meet domestic demand for seafood.11 With one of the world’s highest levels of seafood consumption, it’s no surprise that seafood imports and aquaculture production are of growing importance to the country’s food supply.12 13 Generally, traders are the ones to import fish and seafood products, which are then sold to local distributors or directly to hotels and the food service industry. Traders dealing in high volumes may also sell directly to supermarkets, discount stores, and 1 department stores.14 Most foreign exporters use trading agents or distributors to represent their products in Korea, and exclusive right-to-sell agreements are common practice. Trading agents will represent goods in exchange for sales commission but do not take ownership of the goods. The food services and manufacturing industries rely on trading agents. Distributors will buy goods and resell them with an added margin. These distributors sell to wholesalers, retailers, or directly to consumers.15 Species commonly consumed by Koreans include anchovy, shrimp, mackerel, squid, Alaskan Pollock, tuna, yellow corbina, hair tail, flat fish, Atlantic salmon, monk fish, eel, rock fish, and cod.16 Importers tend to import a relatively small variety of species that they know are in high demand; for example, 30 species accounted for more than 95% of total seafood imports from the United States in 2018.17 The top species imported from Nova Scotia in 2018 were lobsters, clams, crabs, and eels. Live lobster accounted for nearly 70% of the total value of Nova Scotia’s seafood exports to South Korea.18 Korean people eat fresh, chilled, and frozen seafood. Fresh fish is preferred over frozen as it is assumed to taste better, however it is generally more expensive. With rising demand for convenience foods, Korean consumers are becoming more interested in processed and ready-to-eat seafood products.19 Fish and Seafood Types Currently Exported from Nova Scotia to South Korea, 2014-201820 Exported from Exported from Nova Lobsters Canada to Korea Scotia to Korea HS2017 Description 2014-2018 2018 2014-2018 2018 Code 16053010 lobster, prepared or preserved, 2,021,086 1,519,865 874,837 418,278 frozen 03063290* lobsters, fresh or chilled, o/t live (*includes previous HS2012 code: 383,003 342,975 383,003 342,975 03062290) 03061210 lobsters, in brine, frozen 12,540,449 5,119,164 4,766,638 2,483,221 03063210* lobsters, live (*includes previous 227,294,036 58,607,427 225,050,319 58,411,929 HS2012 code: 03063210) 03061290 lobsters, nes, frozen 98,111,167 38,225,367 44,044,854 16,668,562 Exported from Exported from Nova Shrimp and Prawns Canada to Korea Scotia to Korea HS2017 Description 2014-2018 2018 2014-2018 2018 Code 03061610 cold-water shrimps and prawns, 14,512,264 1,281,786 594,102 153,754 frozen, in shell 03061620 cold-water shrimps and prawns, 358,951 128,125 128,125 128,125 frozen, shelled novascotiabusiness.com 2 Fish and Seafood Types Currently Exported from Nova Scotia to South Korea, 2014-201821 Exported from Exported from Nova Shellfish Canada to Korea Scotia to Korea HS2017 Description 2014-2018 2018 2014-2018 2018 Code 03077219 clams, o/t stimson's, frozen, 1,024,140 1,024,140 1,024,140 1,024,140 whether in shell or not 03077900 clams, cockles, ark shells, dried/ salted/in brine/smoked, w/n ckd 154,993 0 154,993 0 before/during smok 03077290 cockles and ark shells, frozen, 1,758,338 326,237 1,506,893 74,792 whether in shell or not 03077990* cockles and ark shells, other than live, fresh, or chilled (*defunct 4,847,845 0 4,847,845 0 HS2012 code; no direct HS2017 equivalent) 03077211 stimson's clams, frozen, whether in 174,565 174,565 174,565 174,565 shell or not 03079900 molluscs, nes, dried/salted/in brine/smoked; mol flours, meals & 997,342 135,475 135,475 135,475 pellets, f hum cons 03073900 mussels, dried/salted/brine/ smoked, w/n cooked before/during 26,565 23,492 23,492 23,492 smoking Exported from Exported from Nova Scallops Canada to Korea Scotia to Korea HS2017 Description 2014-2018 2018 2014-2018 2018 Code 03072200 scallops, including queen scallops, 134,170 0 134,170 0 frozen, whether in shell or not 03072100 scallops, including queen scallops, 200 0 200 0 shelled or not, live, fresh or chilled Exported from Exported from Nova Eels Canada to Korea Scotia to Korea HS2017 Description 2014-2018 2018 2014-2018 2018 Code 03032600 eels, frozen, o/t fish of no 03.04, o/t 1,545,429 535,533 283,774 190,860 fish offal of nos 0303.91-0303.99 03019200 eels, live 7,809,352 1,214,730 5,206,032 544,730 3 Fish and
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