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Cover pictures: Seoul, South Korea. © Department of Primary Industries

Published by: Department of Primary Industries Farm Services Victoria Melbourne, Victoria, Australia November 2009

Also published on www.dpi.vic.gov.au/agribusiness

This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

Authorised by: Victorian Government, GPO Box 4440 Melbourne.

ISBN 978-1-74217-672-7 (print) ISBN 978-1-74217-673-4 (web)

Disclaimer This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. For more information visit the website at www.dpi.vic.gov.au or contact the DPI Customer Service Centre 136 186.

Produced by: Agribusiness Group Department of Primary Industries 1 Spring Street PO Box 4440 Melbourne, Victoria 3001, Australia

Authors: Anita Chennell Project Officer, Strategic Market Analysis DPI Agribusiness Group

Lucy Ridley Project Officer, Strategic Market Analysis DPI Agribusiness Group

Editor: Nicki Marks Senior Project Officer, Strategic Market Analysis DPI Agribusiness Group

Acknowledgements: Ross Clarke, Manager Market Development North Asia Jeong-Hee Bai, Agribusiness Market Representative, South Korea

EXECUTIVE SUMMARY

Currently, 70% of all South Korea’s food is imported (Gillman 2007). Factors such as a growing population, increasing wealth and consumer demand for greater food variety, lower prices, and convenience, have contributed to this increasing and heavy dependence on food imports.

Food exports to South Korea have grown strongly since the late 1990’s, with the largest growth being seen in meat, dairy products and grains. In 2008-09, Australian food exports to South Korea were valued at AU$1.1 billion, a 1% increase from the previous year (DPI 2009).

The State of Queensland, Victoria and New South Wales dominate Australia’s food exports to South Korea. Victoria is ranked second, valued at AU$258 million in 2008- 09. This positions South Korea as Victoria’s 9th largest food and agricultural export market, accounting for 4% of all Victoria’s total food exports (DPI 2009).

Since 2004, South Korea’s Gross Domestic Product (GDP) has remained strong at over 4%, largely driven by exports and consumer spending (Planet Retail, 2008). In 2008, GDP was US$22,000 per capita. In comparison, Australia’s GDP in 2008 was US$46,000 per capita (Euromonitor, 2008a).

Trade liberalisation is opening a large, growing trade in value-added and high-value commodities, including meats, fruits and vegetables, processed foods, and beverages (USDA 2008a). Korea's food sector increasingly reflects trends seen in developed economies, in which convenience, attractive marketing, and variety are key attributes. Animal products and processed foods and beverages become steadily more important in overall food consumption (USDA 2008b).

Annual disposable income per capita has increased substantially since 2000 (see Figure 5), by approximately 54%, from US$8,000 in 2000 to US$13,000 in 2007. This is estimated to reach US$15,000 by 2010 (Euromonitor, 2008a).

The number of single-person households has also increased by 5% from 2000 to 2005, accounting for 20% of the total number of households in South Korea at the end of 2005 (Euromonitor, 2008d). These extensive changes in work and lifestyle are expected to impact positively upon the growth of ready meals. In 2007, ready meals showed strong current value growth of 7% to reach US$230 million (Euromonitor, 2008d).

A greater variety of products have potential in the South Korean market since Korean consumers are open to new products to improve or maintain health. For instance, cancer and cardiovascular diseases are major killers in Korea; therefore, demand for nutritional supplements that enhance the immune system is strong (Austrade undated).

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TABLE OF CONTENTS

Executive Summary...... i

Table of Contents ...... ii

List of Tables and Figures ...... iii

INTRODUCTION ...... 1

This report provides an overview of South Korea’s food market. It aims to assist in identifying opportunities for Victoria’s agrifood producers and exporters by examining current food trends. 1

1. South Korea situation analysis ...... 2

1.1. Socioeconomic Overview...... 2

1.2. Food Imports ...... 3

1.3. Food Exports from Australia and Victoria...... 6

1.4. Consumer Income and Food Expenditure ...... 8

1.5. Retail and Manufacturing...... 10

2. South Korean Lifestyle ...... 11

2.1. Ageing Population ...... 11

2.2. Work hours and Household structure...... 12

2.3. Obesity ...... 12

3. Consumer Trends ...... 13

3.1. Environmental Consciousness...... 13

3.2. Food safety Concerns...... 13

3.3. Information and Telecommunication Capability ...... 14

3.4. Safe and Healthy Foods ...... 14

3.4.1. Fermented Food Products...... 15 3.4.2. Functional Drinks ...... 17 3.4.3. Alcoholic drinks ...... 18 3.4.4. Environmentally Friendly Agricultural Products (EFAP) ...... 19 3.4.5. Organic Foods...... 19 3.4.6. New Organic Processed Food regulations for Korea...... 20

4. Opportunities for Victorian Producers ...... 22

5. Bibliography ...... 23

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List of Tables and Figures

Figure 1: South Korea country map. Source: CIA, 2008...... 2

Figure 2: South Korea’s population pyramid for the years 2000, 2020 and 2050...... 3

Figure 3: Value of Food Imports by Import Country in 2008……………………………………………..3

Figure 4: Value of grains, meat, fruit and Vegetable imports 2000-2008……………………………..4

Figure 5: Per Capita GDP, expenditure and disposable income 2000-2010 (est.)……………………7

Figure 6: Consumer expenditure by food type 2000 – 2012 (est.)……………………………………….8

Figure 7: Shopping cart barcode reader ……………………..…………………………………………...….9

Figure 8: Korean kimchi dish…………………..………………………………………………………………15

Figure 9: Wine imports including fortified wine 2008 ($AU million)……………………………..…….17

Figure 10: ORGA whole foods South Korea……………………………………………………………....…19

Table 1: South Korea’s top 5 food import partners in 2007……………………………………………..6

Table 2: Australia’s key competitors in the South Korean market for the top 5 food

imports…………………………………………….…………………………………………………...…6

Table 3. Victorian Food and Fibre Exports to Japan by Product Category ($AU million)……………7

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INTRODUCTION

South Korea has undergone rapid economic development in the past 30 years. It is now regarded as one of the leading economies in the Asia-Pacific region; being the third largest Asian economy after Japan and China.

Rapid economic growth and increasing per capita income has led to substantial changes in Korean food consumption patterns and lifestyle. Consumption of the main staple foods — rice, barley and potatoes — has declined, while consumption of meat, fruit, vegetables and dairy products has increased.

South Korea’s food consumption trends and lifestyle changes are similar to those found in Australia and Japan, with a greater demand for food products of higher value, greater variety and convenience. Safer and fresher foods also rank highly as important attributes of food products. This is being influenced by factors such as an ageing population, increasing wealth, a well-travelled and educated younger generation, the increasing number of women in the workforce, changing family structure, and an increase in the number of single-person households.

South Korea has a long-standing disposition for healthy food. This is especially true for the older generation who turn to traditional and new products for health protection and benefits. Consumers are also very sensitive to food safety issues, and foods produced without the use of pesticides or insecticides are very appealing. To meet these needs Koreans are becoming increasingly interested in the functional and organic food market.

An estimated 70% of all food products are imported despite Koreans having a greater preference and trust of home-grown food. Factors influencing food imports are the country’s limited agricultural resources, and demand for a greater variety of food (Gillman 2007).

Australia is currently the third largest food supplier to South Korea, following the United States and China. In 2008, Australia accounted for 10% of South Korea’s total food imports.

Victoria is an important source of imports for a wide range of agrifood products. In 2008-09, AU$258 million of agrifood products were exported to South Korea. Dairy and grains products made up 63% of total Victorian exports. These included dairy, grains products and meat which contribute to nearly 70% of Victorian exports. Other commodity groups include grains, prepared foods, niche products including olive oil, horticulture products wine and seafood (DPI 2009).

Victoria is in a strong position to help meet growth in food demand and changing food consumption patterns in South Korea.

This report provides an overview of South Korea’s food market. It aims to assist in identifying opportunities for Victoria’s agrifood producers and exporters by examining current food trends.

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1. SOUTH KOREA SITUATION ANALYSIS

1.1. Socioeconomic Overview South Korea is one of the leading economies in the Asia-Pacific region; being the third largest Asian economy after Japan and China. Classed as one of the poorest countries in the 1960s, it experienced rapid economic development in the 1980’s and 1990’s to become the 10th largest economy in the world today (Gillman 2007).

South Korea’s population is estimated at just over 48.5 million people, has one of the highest population densities and ranks the 26th most populous nation in the world. South Korea is highly urbanised with around 80% of the population living in urban areas. Nearly a quarter of the population (10.1 million people) live in Seoul, the capital of South Korea (CIA, 2008). South Korea's population is one of the most ethnically and linguistically homogenous in the world, with the exception of a small Chinese community of about 20,000 (CIA, 2008).

Korea’s population is ageing due to low birth rates and an increasing life expectancy, with Koreans choosing to have fewer children (1.29 children born/woman in 2008 est.), later in life (CIA, 2008). Approximately 72% of the population is between 15 and 64 years of age, with approximately 10% over the age of 65, and 18% under 14 (CIA, 2008). In light of this, population pyramids in Figure 2 estimate the change in South Korea’s population age structure from the year 2000 to become an inverted pyramid by the year 2050.

The land area of South Korea is less than half the size of Victoria of which only 22% is used for agriculture (CIA 2008). Rice dominates crop production and has long been the staple food. South Korea is self sufficient in rice, whereas wheat supply from domestic sources meets less than 1% of the nation’s demand. Barley, corn, soybeans and grain sorghum are also extensively cultivated.

Figure 1: South Korea country map. Over the last three decades, the production of vegetables, fruit, and livestock has increased (USDA, 2008a); and workers in the agricultural, forestry and fishery sectors have significantly reduced (from 63% of the total labour force to 7%, in 2007 (Korea.net 2007).

South Korea's progress in economic growth is largely attributed to the willingness of individuals to invest a large amount of resources in education (CountryStudies.com, undated). South Korea has one of the highest education-participation rates in the world and ranks first in the percentage of 25-to 34- year-olds who have completed secondary school, among the Organisation for Economic Co-operation and Development (OECD) countries (Chon-sun, 2007).

Source: CIA, 2008

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Figure 2: South Korea’s population pyramid for the years 2000, 2020 and 2050

Source: Nationmaster.com 2008

1.2. Food Imports Currently, 70% of all Korea’s food is imported (Gillman 2007). Factors such as a growing population, increasing wealth and consumer demand for greater food variety, lower prices, and convenience have all contributed to this increasing and heavy dependence on food imports.

South Korea has concluded, or is pursuing negotiations for a number of bilateral free trade and investment agreements. So far, South Korea has signed deals with Chile (2004), the European Trade Association (2004), Singapore (2005), The Association of Southeast Asian Nations (ASEAN) (2007), and the US (2007, but not ratified). Talks are under way with

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Australia, Canada, Mexico, India, the EU and Japan. South Korea is also looking to open discussions with, China, Malaysia, Turkey, Peru, Mexico and possibly Israel (bilaterals.org, 2009).

Although overall market access is increasing, and Korea’s government is implementing reforms in the agriculture sector and reducing tariffs and non-tariff barriers on agricultural imports, the level of protection on many agricultural commodities remains relatively high so as to protect domestic producers from foreign competition (ABARE 2007).

Korea imported $18.9 billion in agricultural goods in 2008. The United States was the main exporter to Korea, supplying corn, meat, hides, soybeans, milling wheat, and cotton valued at $5.57 billion in 2008. Other important suppliers included China: Feeds from starch and brewing residues, frozen and preserved vegetables, processed foods, soybean; Australia: Beef, wheat, sugar, dairy products; ASEAN (Association of Southeast Asian Nations): Rubber, palm oil, bananas, oilseed meals; European Union: Pork, wine, processed foods, dairy products; Brazil and Argentina: Soybeans, soymeal, soyoil; and New Zealand: Beef, dairy products, kiwifruit (USDA, 2009).

Figure 3: Value of Food Imports by Import Country in 2008

7,000

United States 6,000 China

5,000 Australia

Brazil 4,000 Vietnam

Russia 3,000 $AU million $AU New Zealand

2,000 Thailand

Canada 1,000 Japan

Source: GTIS, 2009

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Figure 4: Value of grains, meat, fruit and Vegetable imports 2000-2008

6,000 Grains

5,000

4,000 Meat

3,000

$AU million 2,000 Fruit and Vegetables 1,000

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Dairy

Source: GTIS, 2009

Figure 4 illustrates the strong increase in South Korea’s import demand for non-traditional agricultural products. For example, the value of grains has doubled since 2000.

South Korea’s dairy imports were valued at US$277 million in 2006. Dairy consumption levels of all products have continued to grow including butter, cheese, milk and cream, powdered milk and cream, whey products, yoghurt and fermented milk products contributing to this trend (Euromonitor, 2008a).

The import of niche products (eggs, honey and olive oil) (not displayed in Figure 4) is also a growing market, having increased by 47% over the past eight years, to be valued at US$10 million in 2006 (Euromonitor, 2008a).

An exception to the above trend has been a decrease in the import of meat. The downturn in meat imports was mainly due to beef and poultry, which can be attributed to the Bovine Spongiform Encephalopathy (BSE) and avian influenza outbreak in 2003 and 2004 (USDA, 2008a). As a result, the import of pig meat almost doubled during 2003 and 2004, to be valued at US$744 million in 2006 (Euromonitor, 2008a). MLA Korea has estimated that beef consumption in Korea could rise from the current level of 8 kg per person to 13kg and possibly to 19kg over time (Clarke, 2009).

Before the BSE outbreak in 2003, the United States was the dominant beef supplier to South Korea. The issue of US beef imports caused heated debate in South Korea with public protests a common occurrence. The BSE-outbreak resulted in a ban on US beef from late 2003. Further temporary bans were implemented against US beef until a final agreement was reached in 2008. Australia's beef sales especially premium chilled beef, increased as a result and Australia earned a reputation as a clean and green producer of high-quality beef (DFAT, 2009). It also provided Australian beef suppliers an opportunity to demonstrate the range of beef available from Australia, from grass-fed to long-term grain fed, highly marbled products.

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Australia is currently the third largest food supplier to South Korea, following the United States and China. In 2008, Australia accounted for 10% of South Korea’s total food imports. South Korea’s main imports of agricultural products from Australia include beef, wheat, malt, cheese and milk powder (Table 1). Australia’s key competitors for these products are New Zealand, USA and Canada. This is further detailed in Table 2.

Table 1: South Korea’s top 5 food import partners in 2007 Country Proportion of all Top 5 imported products (by value $US) food imports (in descending order of value)

USA 31% Corn, Wheat, Pork, Oranges, Poultry Australia 18% Beef cuts, Wheat, Malt, Cheese, Milk Powder China 17% Corn, Prepared/Frozen Vegetables, Rice, Wheat, Dried Vegetables New Zealand 5% Beef cuts, Kiwifruit, Cheese, Bovine Offal, Fresh Vegetables Canada 4% Wheat, Pork, Malt, Potatoes, Rye

Source: Euromonitor 2008a.

Table 2: Australia’s key competitors in the South Korean market for the top 5 food import products

Australia’s top 5 imported product to Key competitors in the market (in descending order of South Korea (in descending order of value) value)

Beef cuts United States, New Zealand, Canada Wheat United States, Ukraine ,Canada, China, Malt China, United States, Canada Cheese New Zealand, United States, Uruguay Milk and Cream France, New Zealand , Austria

Source: GTIS, 2009.

1.3. Food Exports from Australia and Victoria Food exports to South Korea have grown strongly since the late 1990’s, with the largest growth being seen in meat, dairy products and grains. In 2008-09, Australian food exports to South Korea were valued at AU$1.1 billion, a 1% increase from the previous year (DPI 2009).

The State of Queensland, Victoria and New South Wales dominate Australia’s food exports to South Korea. Victoria is ranked second, valued at AU$258 million in 2008-09. This positions South Korea as Victoria’s 9th largest food and agricultural export market, accounting for 4% of all Victoria’s total food exports (DPI 2009).

As shown in Figure 3, Victoria supplies a wide range of agricultural products to South Korea; the most valuable of these includes dairy, grains and meat which contribute to nearly 86% of Victoria’s exports to South Korea. Other exported commodity groups include prepared foods, niche products, horticulture, wine and seafood (DPI 2009).

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Table 3. Victorian Food and Fibre Exports to South Korea by Product Category 2008-09 ($AU million)

Commodity group / Product 2004-05 2005-06 2006-07 2007-08 2008-09 % total Dairy total 76 68 75 74 100 39% Powdered milk and cream 13 25 26 25 37 37% Cheese 26 26 27 28 36 36% Milk and Cream 7 2 2 2 11 11% Other Dairy products 30 15 20 19 16 16% Grains total 40 22 24 27 62 24% Malt 38 21 23 15 34 55% Canola and oil 1 0 0 10 21 35% Oils and oilseeds 0 0 0 2 4 7% Other Grains products 1 0 1 1 2 3% Meat total 78 73 90 72 59 23% Beef 62 57 71 56 44 74% Offal 10 12 13 11 7 12% Sheep meat 5 4 5 5 5 8% Other Meat products 1 0 1 1 3 6% Prepared foods total 14 7 7 10 13 5% Beverages and spirits 0 0 2 3 4 34% Other food preparations 2 2 2 2 3 21% Confectionary 10 3 0 1 2 18% Other Prepared foods products 2 2 3 5 3 27% Wool and fibre products 12 15 13 2 10 4% Medium wool 7 8 8 0 7 70% Fine wool 2 3 3 NIL 2 19% Skins and hides 1 3 0 1 1 9% Other wool and fibre products 2 2 2 0 0 2% Niche Total 8 9 8 9 8 3% Pet and animal feed 5 5 5 5 5 62% Fodder 3 4 3 3 3 38% Olive oil 0 0 0 0 0 0% Other Niche products 0 0 0 0 0 0% Horticulture total 3 4 4 4 3 1% Fruit and vegetable juice 2 2 3 3 3 87% Fresh or dried vegetables 0 0 0 0 0 7% Nuts NIL 1 NIL 0 0 3% Other Horticulture products 0 1 0 0 0 4% Wine total 1 2 3 3 2 1% Red 1 2 3 2 1 65% White 0 0 1 0 0 18% Sparkling 0 0 0 0 0 14% Other Wine products 0 0 0 0 0 3% Seafood Total 0 0 0 0 0 0% Seafood extracts and oils 0 0 0 0 0 100% Abalone NIL 0 0 0 NIL 0% Lobster 0 0 0 0 0 0% Other Seafood products 0 0 0 0 0 0% Total South Korea 231 202 224 201 258 100%

Source: DPI, 2009

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1.4. Consumer Income and Food Expenditure Since 2004, South Korea’s Gross Domestic Product (GDP) has remained strong at over 4%, largely driven by exports and consumer spending (Planet Retail, 2008). In 2008, GDP was US$22,000 per capita. In comparison, Australia’s GDP in 2008 was US$46,000 per capita (Euromonitor, 2008a).

Annual disposable income per capita has increased substantially since 2000 (see Figure 5 below), by approximately 54%, from US$8,000 in 2000 to US$13,000 in 2007. This is estimated to reach US$15,000 by 2010 (Euromonitor, 2008a).

Figure 5: Per Capita GDP, expenditure and disposable income 2000-2010 (est.)

25000

20000

15000

Consumer expenditure on food 10000 GDP 5000 Annual disposable income

Income capita expenditure per and ($US million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year

Source: Euromonitor 2008a.

Although the value of consumer expenditure on food during this period has increased from US$1,000 to US$1,500 (annually per capita) in line with disposable income (see Figure 6), the actual percentage of annual income spent on food has slightly decreased from 13% to 12%. This is estimated to decrease even further, reaching 11% by 2010 (Euromonitor, 2008a).

The increase in consumer income will result in a growth in sales of food and beverage products with new tastes and added value. In particular, luxury goods could see a faster growth, as Korean’s become more diversified in their tastes, preferring natural and fresh foods, and become increasingly sophisticated in their food consumption habits (Gillman 2007).

Although the South Korean food industry heavily depends on imported raw materials and ingredients, consumers are generally biased towards home-grown products. Consumers prefer products that have a national brand and/or have been recognised in the market for sometime. For affluent groups and young professionals, quality and image can outweigh price when making purchasing decisions. Exposure of Korea’s younger generation to western-style foods, brands and tastes, through overseas travel and study, is increasing their familiarity and acceptance of products such as ice-cream, cheese, yogurt, prepared meat products, natural fruit and vegetable juices, coffee, wine and microwavable products (Gillman 2007).

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The transformation of diets with economic development and increasing per capita incomes has been well documented. As per capita incomes approach developed country levels, consumption of meats, vegetables, fruits, and dairy products form a larger and larger part of the diet (Duncan et al 2005). South Korea reflects this trend, where currently, approximately 50% of consumer food expenditure is spent on non-traditional products of meat, dairy, eggs, wine, fruit and vegetables. Although the value of expenditure per product type is set to increase over the period 2000 to 2012 (est.) as shown in Figure 6, the actual percentage of total consumer expenditure on each of the food items will only increase marginally. This is mainly reflected in the sale of fruit (2%), vegetables (1%) and milk, cheese and eggs (1%). The exception is meat products, where expenditure has fallen by 3% (of total food expenditure) since 2000.

Figure 6: Consumer expenditure by food type 2000 – 2012 (est.)

14,000

12,000

10,000

8,000

6,000

4,000

2,000 Consumer expenditure on food ($AU million) ($AU food on expenditure Consumer

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year

Consumer expenditure on meat Consumer expenditure on milk, cheese and eggs Consumer expenditure on fruit Consumer expenditure on vegetables Consumer expenditure on wine

Source: Euromonitor, 2008a.

RNCOS (2008) reports South Korea’s consumption habits in different food segments, such as fruit, vegetable, milk and meat products. According to this report, South Korea consumes a high quantity of meat, and will remain high in the future. Fruit intake has been on the rise since 2003 and is the next sector that will witness a high demand in coming years, driven by altering taste preferences and growing health consciousness.

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1.5. Retail and Manufacturing South Korea has a modern retail sector that is of a high standard with a strong focus on customer service. Hypermarkets feature departmentalised areas within the store, a comprehensive range of food and non food item and are especially strong in fresh products and staffed counters. Convenience chains have gradually replaced the family run stores and many offer 24 hour shopping, a wide variety of merchandise and prepared and fast foods. Other services include ticket sales and e-commence. The supermarket sector is gradually losing market share to hypermarkets and operators have reacted by becoming larger and specialising in the areas fresh food products and health food. Western coffee shop franchises including Starbucks, Coffee Bean Leaf, Java Coffee and many others have grown rapidly in the past few years as have bakery franchises including such names as Paris Baguette/Croissant, Crown and Tous les Jours (Planet Retail, 2008).

In 2008, the grocery retail market value was estimated to be worth US$108.5 billion (IGD 2008). As hypermarkets rapidly expand and the predominantly urban population becomes more affluent, processed food sales are expected to grow. Demand for convenience, international tastes and products, and a change in consumer lifestyles are driving this trend (EIU, 2006).

Large retailers are responding to consumer demand with increased amounts and varieties of convenience food products, online ordering and delivery service. Online retailers have grown 190% during the past 5 years to almost a tenth of retail sales. South Korean consumers’ high affinity for information technology is also a key factor behind online shopping growth. In 2004, total sales of food and agriculture products accounted for approximately 9% of total online shopping sales, about US$660 million. By 2008 online shopping sales are expected to be second only to that of mass retailers (USDA, 2007).

Figure 7: Shopping cart barcode reader Innovation in technology has developed new types of retailing in South Korea. The smart card which is equipped with a barcode reader (see figure 7) and touch screen on the shopping cart is designed to assist consumers. It offers better information about products and shortens the time for payment, as the shopping cart is already installed with a barcode reader and it can be shown to the cashier for payment. Besides the smart card, electronic price tagging has been widely used in grocery retailing in South Korea in place of paper price tags and a self-payment system has been introduced by retailers such as Homeplus Lotte Mart and E-Mart to reduce checkout queuing (Euromonitor, 2009a).

Source: Jaronbrass, 2008

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2. SOUTH KOREAN LIFESTYLE

2.1. Ageing Population One of the world’s top three socio-economic issues is ageing. Four of the 10 fastest ageing countries in the world are in Asia, one of which is South Korea (USB, 2008). In 2009, the number of people aged 65 and over will make up 11% of the population (CIA 2009).

Korea’s ageing population is having a substantial impact upon South Korea’s consumer market; driving consumer purchasing patterns towards healthcare services, health and wellness products. Korean culture has long subscribed to the health attributes of traditional foods (EIU, 2006); has contributing to the increase in health awareness of ageing consumers and increased public emphasis on healthy eating.

With its ageing population, South Korean consumers are more interested in healthy eating and exercise. Extended life expectancy means that many people want to stay healthy and the demand for dietary supplements and healthy food such as organic products, high protein foods and functional foods has grown steadily (Euromonitor, 2009b).

By 2050 the population is expected to decline to 43 million with over one third of the population over the age of 65, with 6 million aged 80 and over (nationmaster.com, 2008). Duncan et al (2005) reports that, because women generally outlive men and eat less, and older people no longer in the workforce are less active and probably need fewer calories to maintain physical activity, we can expect that a larger proportion of older people, may mean the quantity of food consumed per capita will decline. As previously shown in Figure 2 this trend is expected to be seen in South Korea, where approximately one third more women are expected to live beyond 80 years then women (nationmaster.com, 2008).

The ageing population is likely to also impact not only on the quantity of food consumed, but the types of food consumed, and the ways in which food is consumed. For example, there is evidence that older people eat more fresh fruit and vegetables, fish, and eggs, and prefer to eat at home more often than younger people (Lin et al., 2003). Many South Koreans households now have only one child and the number of second and third children in families is falling. Consumer spending on baby products will decline in line with this trend, however parents with more disposable income are more willing to spend more on premium products for their fewer offspring (Euromonitor, 2009b).

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2.2. Work hours and Household structure South Korean workers have until recently worked an average of 51 hours per week. Regulation of working hours has been rolled out over the past four years which now restrict employers with staff of more than 20 workers to 40 hours per week and a five day working week (Park & Naroo, 2009).

In 2007, labour force participation rates for women in their twenties was around 63%. This figure drops to around 56% for women in their thirties because many leave their jobs to take care of children. The labour participation rates increase with women in their forties to around 66% as they re-enter the labour force to pay for education expenses and other living expenses (Euromonitor, 2009c).

There has also been an increase in the number of house-husbands, reaching 143,000 in 2007, growing 35% from four years ago; even though South Korea has one of the lowest birth rates in the World (1.29), and most couples only have one child. By 2030, it is estimated that one out of five households are expected to be childless (Ja-young, 2008).

2.3. Obesity South Korea has the lowest obesity rate among the OECD. A survey taken of people aged 15 or older in 30 member countries from 2006-2008, showed that South Korea's obesity rate was 3.5 percent, followed by Japan with 3.9 percent and Switzerland with 7.7 percent (Korea Times, 2009). However, in recent years cardiovascular disease has been a major health problem in Korea, and in 2007, accounted for 23.5% of all deaths in the country (il Suh, 2009).

Fast economic development, a change in lifestyle and changing food consumption patterns have led to changes in the sources of daily calorie intake. Calorie intake per person has risen from 2,440 per person in 1965 to more than 3,000 by the year 2005 (EIU 2006). This is a similar level to that found in more developed countries. Consumption of the main staple foods, rice, barley and potatoes, has declined, while consumption of meat, fruit, vegetables and dairy products has increased. Between 1975 and 2005 the proportion of calorie intake from animal products doubled from 7% to 15%, while intake from traditional sources such as rice, barley and starchy root vegetables declined (Ho Lee et al., 2004).

With growing concerns about health and obesity, South Korean consumers are expected to move to healthier alternatives within the food and non-alcoholic beverages sector. Health and wellness products are expected to become further diversified. The popularity of the well-being trend is expected to affect the drinking culture by encouraging consumers to avoid excessive drinking. Wine is expected to maintain its current strong growth rate, as many consumers drink wine because of its perceived health benefits (Euromonitor, 2008f).

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3. CONSUMER TRENDS

3.1. Environmental Consciousness During the past 20 years, South Korea has experienced an increase in awareness and change in attitude towards environmental issues. Awareness of environmental issues began in 1988, driven by the Seoul Olympic Games. During the mid to late 1990s and early 2000, Koreans began to understand the concept of being ‘environmentally friendly’. For example, in 1995 the Korean government initiated a nationwide, volume-rated garbage management system. Korean’s now go to the extent of removing vinyl labels from recyclable waste to simplify the procedure; and waste foods are kept separate so they can be used as animal fodder. According to The Ministry of Environment, separation of food waste surpassed 96% in 2005 (Korea Times 2007b).

The concept of well-being (defined as a lifestyle that is eco and bio friendly and ultimately good for each person) has become very popular. Many people realised that living in an environmentally friendly manner would lead to a better life. Koreans began to make foods with organic ingredients and tried to use organic detergents while washing so as not to contaminate water. Community based groups such as Lifestyle of Health and Sustainability (LOHAS) groups evolved during the 1990’s. These groups look for well-being in themselves as well as seeking sustainable development in society (Korea Times 2007b).

In 2007, the Ministry of Environment announced that the value of the domestic environmentally product market surpasses US$10.7 billion and there are some 5,500 eco- products authorised by the government. Large supermarket chains such as E-Mart, Lotte Mart or Home Plus all have their own environmentally friendly brands and their sales are increasing. E-Mart expects to offer more than 1,500 kinds of goods in its line (Korea Times 2007b).

The South Korean Government is also driving the use of new and renewable energy; with the goal of raising the use from a current 2% to more than 20% by 2050. As it stands, South Korea is the World's 10th largest energy consumer and the 5th largest crude oil importer. South Korea planned to increase its investment in alternative energy development by 60% in 2008 to US$193 million. The focus was on solar and wind power and biofuels (CSR 2008).

In addition, the South Korean government will introduce carbon labels for an initial selection of ten products, beginning January 2009. The labels will record the amount of carbon emitted throughout the lifetime of the product, from manufacture to end of life disposal. Pilot products will include specific brand washing machines, heaters and LCD glass (CSR, 2008). The South Korean Government sees this initiative as following similar action taken in countries such as the UK.

3.2. Food safety Concerns. Currently, 70% of all Korea’s food is imported (Gillman 2007). Factors such as a growing population, increasing wealth and consumer demand for greater food variety, lower prices, and convenience, have contributed to this increasing and heavy dependence on food imports.

South Korea Food Market Overview DPI Agribusiness Group Page 13 of 25

South Korean consumers are very aware of, and sensitive to food safety issues. This is heavily influenced by media coverage. Food safety scares tend to affect the demand for a product in both the short and long term (USDA 2008a). The downturn in Korea’s meat imports in 2003 and 2004 was attributed to the BSE and avian influenza outbreak and the assumed associated effect this would have on human health (USDA 2008a).

There was an increase in the number of Koreans who tried a vegetarian diet following the outbreak of avian influenza. There has also been an increase in consumer demand for safe, healthy food following a number of international food safety incidents (Korea times 2008a).

3.3. Information and Telecommunication Capability South Korea has a technology savvy population; they are global leaders in internet use and mobile phone technology. Korea’s leading information and communication networks are powerful tools in influencing Korean consumers’ opinion (Paul Budde Communication 2007).

Korean’s are very receptive to new developments, particularly with broadband applications. The country has the highest number of broadband connections per capita in the world. South Koreans spend longer online than citizens in any other country, and in early 2007, 90% of all households had broadband access (Paul Budde Communication 2007).

South Korea has the fastest-growing mobile phone penetration rates in the Asia-Pacific region (Henten et al 2004). In 2007 there were 41 million mobile phone subscribers (85% market penetration) with an annual growth rate of around 5% (Paul Budde Communication, 2007). To put this in perspective, Korea.net (2008) estimate that nearly every Korean over the age of 12 owns at least one mobile phone.

A recent example of how powerful the use of this technology is in South Korea was when there was a public uprising against imported US beef. Information and communication technology played a leading role in facilitating street demonstrations. It also enabled misinformation about BSE and food safety issues to spread rapidly throughout the country. The more traditional news and media outlets used by the Government and industry proved powerless to counteract public opinion (The Korea Times, 2008b).

As a consequence of the BSE outbreak and the public uprising, the South Korean government is expecting its industry to implement effective traceability systems in the near future. Victoria/Australia is considered by many countries including Korea, as a world leader in cattle identification and traceability systems, through implementation of the National Livestock Identification System (NLIS) (Clarke 2008).

3.4. Safe and Healthy Foods In conjunction with their rising wealth, ageing population and improved education, South Korean’s are becoming more conscious of the quality of their food, and have a greater concern for disease prevention. This in turn is feeding a growing demand for safe and healthy foods.

As consumers become more health and safety conscious in their food buying habits; ingredients, packaging, and shelf life are becoming important determinants of purchasing behaviour. Demand for greater quality in flavour and nutrition has increased and spending habits are also becoming more diversified (USDA 2006). South Korea Food Market Overview Page 14 of 25 DPI Agribusiness Group

There has been strong growth in the demand for functional foods. Koreans define functional foods to be the key to good health, with vitamins and dietary supplements leading the way (Euromonitor 2006). In 2005, sales of functional foods were estimated to reach US$2.8 billion, and are anticipated to experience dramatic growth over the short term to US$4.7 billion by 2010. Imports supplied approximately 20% (US$520 million) of Korea’s functional foods market in 2004. The main import supplier is the US with 84% of market share in 2004; followed by Japan (7%), China (2%), the European Union (1%), Canada (1%) and Taiwan (1%) (Agri-food Trade Service 2006).

The Korean government has developed legislation to ensure health claims for all these products can be justified on scientific grounds. In 2004, South Korea’s Ministry of Health and Welfare enforced the Functional Health Food Law. The term “health/functional food” (HFF) refers to food supplements containing nutrients or other substances (in a concentrated form) that have a nutritional or physiological effect whose purpose is to supplement the normal diet. The Act requires these products to be marketed in measured doses, such as in pills, tablets, capsules and liquids (Kim 2006). In addition, products must be approved by the Korean Food and Drug Administration (KFDA) before they can be promoted for their functionality, and non-compliance can attract substantial fines. The KFDA also maintains a list of allowed ingredients.

The major factors driving demand for functional foods and foods with nutritional supplements are attributed to a greater concern for disease prevention and South Korea’s rapidly ageing population (Austrade undated). The outlook for functional foods is positive and will be bolstered by the country’s centuries-old familiarity with herbal medicine and the current consumption of certain foods for health benefits (EIU 2006). The functional food sector is also well placed in a context where consumers are being encouraged to embrace convenient food solutions, while also being concerned about the nutritional qualities of foods (Dixon et al 2006).

3.4.1. Fermented Food Products Kimchi, (a mild to fiery mixture of fermented cabbage, garlic, pepper and other ingredients) is Korea’s traditional and iconic food. It is regarded as one of the most nutritious foods in the world (Korea Times 2007a). Fermented food products are seen as intrinsically well-being products and a wide range is available in the Korean diet.

According to the Korean Ministry for Food, Agriculture, Forestry and Fisheries (MIFAFF.2008), kimchi is highly nutritious, strengthens the immune system, prevents cancer, lowers blood cholesterol levels, and delays the ageing process promoting longevity (Meyer 2008). In 2003, sales of a kimchi increased owing to popular belief that it offered protection against the Severe Acute Respiratory Syndrome (SARS) (EIU 2006). Since this time, South Korea has been experiencing a well-being boom, resulting in a dramatic rise in the consumption of health and functional foods (Levy 2007).

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Figure 8: Korean Kimchi dish

Source: Nagyman, Flickr, creative Commons, 2009

The well-being trend is having an influence on the foodservice industry. Businesses are developing premium products and including healthy options in their menus, with seafood being particularly popular. Many are tailoring their offerings to suit specific demographic groups, such as working women (Euromonitor 2008c).

Since 2002, the increasing health consciousness of consumers and the slowdown in the economy contributed to a downward trend in the fast food market. The main reason for the shrinkage of the fast food industry has been the dramatic decline in burger fast food sales which declined by 7% in 2005 and a further 5% in 2006. In response to the well-being trend, burger fast food companies are focusing on more premium quality burgers and diversifying their side and drinks menus, rather than introducing more fresh salad (Euromonitor 2008d). There is also a growing emphasis in South Korea on traditional cuisine as opposed to ‘fast food’. Traditional Korean cuisine is based on vegetables, grains and some meat and seafood, making it a healthy diet. The emphasis is to consume healthy foods from plants, seeds and animals and other farming products cultivated in an eco-friendly manner.

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3.4.2. Functional Drinks The move towards a healthier diet is also being felt in the drinks industry. The functional drinks market has been boosted by growing consumer incomes, increased health consciousness, and changes in taste. Spending on hot drinks and soft drinks generally grew by 60% from 1995 to 2007. In the cold drinks range, soft drinks, juice beverages, and health drinks such as yakult, (a fermented milk drink) have gained ground in recent years. Healthier cold drinks such as mineral water, functional water and Asian ready to drink cold teas have also been growing. However, fierce competition is coming from the sport drink market including products such as Pocari Sweat, Gatorade, Powerade and some protein drinks. These attract consumers who are fitness conscious (USDA 2008c).

The continued rise in awareness of healthy lifestyles contributed to consumers increasing purchases of sports drinks. However, food safety has been a major issue for the soft drink market in recent times. With artificial colourants, sodium benzoate and monosodium glutamate content detected in sports drinks, some consumers’ are wary of these products. The Korean government is constantly reviewing artificial ingredients in food and beverages and many are being phased out.

The trend towards healthier beverages is also being reflected in gradual expansion in sales of bottled water. The sale of bottled water in South Korea is increasing at an annual rate of 10%. In 1995, the sales turnover reached US$428 billion and is expected to reach US$570 billion in 2010. The demand substantially increased in 2007, while the sales turnover of aerated drinks declined confirming that South Korean consumers are becoming more health conscious (Exportnavigator 2007). Euromonitor (2008e) report concerns regarding the quality of tap water in South Korea and consumer’s increasing demand for products offering convenience stimulated bottled water consumption. However, research indicates that while bottled water saw a growth value of approximately 6% to US$564 million in 2007, many consumers opted to shift their purchase from carbonates to ready to drink tea or fruit and vegetable juices.

Juice imports exceed US$100 million per year, with orange juice the most common and popular juice drink in South Korea. Local tangerine (Jeju-Gamgyool), aloe, grape and tomato juices are also gaining popularity. South Koreans' purchase of 100-percent natural juice increased to 67% of total fruit beverage sales in 1996, from 25% in 1991. Domestic tangerines are generally eaten fresh, leaving the market for citrus juices available to foreign suppliers. Although Brazil supplies most of the orange juice concentrate, US suppliers dominate all other juice markets, with a one- third share of total juice imports. Vegetable juice, including tomato juice, accounts for less than 3% of total juice imports (USDA 2008c).

Korea’s many medicinal herb teas such as Arrowroot tea and ginseng tea and Korean traditional teas made from local grains and fruits such as jujube, ginger, barley, citron should benefit from this trend. Some of the domestic alcoholic drinks, such as ginseng wine, and black raspberry wine and others that use local grains and herbs, should also experience growth from healthy living trends (Euromonitor, 2008f).

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Figure 9: Wine imports including fortified wine 2008 $AU million

100

France 70

60 Chile

50 Italy

$AU million $AU 40

United States 30

20 Australia

0 2003 2004 2005 2006 2007 2008

Source: GTIS, 2009

3.4.3. Alcoholic drinks Within the wine sector, foreign brands dominate the grape wine share of wines sales. Domestic brands dominant the non-grape wine sales. As demand for grape wine continues to grow, many major domestic food companies and conglomerates have entered into the wine importing business, including LG international Corp, SK networks, Maeil Dairy Industry, Co. Ltd. and Dongwon F&B Co. Ltd. have established wine importing and distribution business units within their companies (Euromonitor, 2009).

Consumers are moving from high alcohol level distilled products such as Soju (a traditional Korean beverage) which recently had its alcohol level reduced from 25% to 19.5%, and from whiskey to wine and beer. Health concerns and attraction to well-being focussed marketing has contributed to this trend. According to The Korea Times (2008d), beer imports have doubled in 3 years, mainly from Japan and Europe. E-mart, the biggest discount franchise store in South Korea, reported that wine outsold soju for the first time in the summer of 2008 and has been the only alcoholic beverage for which sales have constantly been on the rise over the past few years, whilst sales of Soju had stagnated (Korea Times, 2008e).

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3.4.4. Environmentally Friendly Agricultural Products (EFAP) In order to provide safe and high quality agricultural products and contribute to the preservation of the national environment and sustainable agriculture, South Korea promotes environmentally friendly farming (United Nations, Undated).

The size of the South Korean retail market for Environmentally Friendly Agricultural Products (EFAP) was US$1 billion in 2004, of which US$460 million was produced locally and included fresh produce and processed foods. Organic products are considered a small subset of this market because some consumers perceive that organic food is safer, healthier, or better for the environment than non-organic foods. In 2004, South Korean retailers displayed 2,500 EFAP items, one third of them imports (Phillips and Youngsook 2006). The local stores offer fresh produce that are favoured by consumer groups. Organic products are sold in sections of hypermarkets and department stores.

The South Korean government encourages farmers to grow organic products for environmental reasons, and farmers receive a premium for these products. The South Korean government has developed an organic certification and labelling program that has had an additional positive effect of increasing consumer awareness about the heavy use of agricultural chemicals in Korea.

In 2004, the South Korean government set up a plan to decrease the use of agricultural chemicals by 40% by 2013. In light of this, the government expects production of certified EFAP produce to rise from the current 2% to 10% of all agricultural production by 2010 (Phillips and Youngsook 2006).

3.4.5. Organic Foods The South Korean organic market was valued at around US$318 million (USDA, 2008d). South Koreans are very sensitive about food safety issues. Clean food (freedom from pesticides, agro- chemicals, biological contaminants and GMO’s) is very important to South Korean consumers. Organic food has benefited from this trend towards safe and healthy foods. A consumer survey conducted in 2005 indicated that 80% of surveyed consumers were purchasing organic products because they were concerned about their family’s health; 72% were concerned about food safety; 8% thought that organic foods contained more nutrition or the quality was better and 4% were concerned about the environment (USDA 2006).

Domestic production of Agricultural products includes fresh vegetables, some fruits and rice accounting over US$107 million in 2007. Domestically produced and processed organic food accounted for US$19.8 million and includes yogurt, green tea, ginger powder, milk and strawberry jam. Domestically processed organic food with imported ingredients includes baby food, tofu, fruit juices, cheese, red pepper paste, mayonnaise, and soy sauce, accounting for 68% to US$138 million in 2007. South Korea imported US$19.1 million of ‘finished products’ in 2007, an increase of 4.4%, from 2006 (USDA, 2008d). A wide range of organic processed foods are imported including cereal products, olive oil, chocolate, sweet corn, sauces and condiments. The majority of these processed products came from the USA; followed by the EU, China and Australia (USDA, 2008d).

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The majority of consumers for organic products live in the Seoul metropolitan area where the residents typically earn higher incomes. Organic and environmentally friendly products can increasingly be found in mainstream retail outlets, department stores and in some supermarkets where space is leased out. ORGA have 21 such sections (see figure 10) in the Lotte department stores throughout South Korea and also have eight stand alone stores. ORCA imports around one quarter of its organic products directly and the rest are locally produced (USDA, 2008d).

Figure 10: ORGA whole foods South Korea

Source :USDA, 2006

Major players currently operating in the global organic foods and beverages industry are, Wal-Mart Stores, Tesco, Carrefour, Metro AG and Kroger (RNCOS 2007). The prices for fresh organic produce are much the same as their conventional counterparts, however, the prices for processed organic products are well above those of their conventional counterparts. Nevertheless, many South Korean consumers perceive a benefit and are willing to pay the higher prices, particularly for their children. On average in 2004, people were willing to pay 21% more for fresh produce and 17% more for processed EFAP products (USDA 2006).

Culturally Korean mothers are well known for the great lengths they will go to in order to protect their family. Initially this group purchased organic products for their children, including baby food, infant formula, baby teething crackers and other non-food organic items such as baby clothes, diapers and shampoo. However the organic food that is now being purchased has expanded to include the whole family (USDA 2006).

3.4.6. New Organic Processed Food regulations for Korea The Korean Government is bringing in new legislation for processed organic products and a new certification system from 1 January 2010. The changes as described are likely to curb the export trade of most processed organic products into Korea. The new regulations are being managed by MiFAFF. The legislation requires companies labelling or selling organic processed food products in Korea to have their products certified by an agency accredited by MiFAFF.

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MiFAFF has accredited two Korean certification agencies as of June 2009 for processed food products. They are:

The Korea Food Research Institute (KFRI) at www.kfri.re.kr/newekfri/ and Doalnara Certified Organic Korea (DCOK) at http://dcok.systemdcok.or.kr/e_about_us.php

Foreign certification agencies can apply to act as certification agencies but so far, no Australian or overseas agencies have been accredited. The cost of being certified by an approved certifier will be expensive for Australian companies because it involves paying for two inspectors to come to Australia and undertake a physical inspection of the company and suppliers of ingredients.

Processed food products imported in 2009 under previous regulations may only be sold in Korean retail shops until 31 December 2009. From 1 January 2010 only products with appropriate certification (as outlined above) can be sold as "organic" products. Companies that are currently exporting organic products into Korea or plan to do so should consult their Korean importers prior to shipment of products and their Australian certifying organisation for further information.

Suppliers of organic ingredients/or raw materials (i.e. primary agricultural and livestock products) require their products to be certified by an agency approved by the National Agricultural Products Quality Management Service (NAPQMS). Although NAPQMS has accredited 50 certifiers in Korea for primary agricultural and livestock products only eight certifiers have been approved to certify foreign agricultural produce. Certifications from foreign certification agencies, not accredited by NAPQMS or MiFAFF, will not be recognised in the Korean market. The Australian Government has requested the Korean Government to delay the introduction of the new regulations and consider an agreement to recognise for reciprocal equivalence (Clarke, 2009).

At present, fresh organic vegetables and fruit imports into South Korea may be subject to fumigation on arrival with chemical agents to prevent potential pest risks (phytosanitary requirements) during the customs clearance process which could affect the organic status of products (USDA, 2008d).

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4. OPPORTUNITIES FOR VICTORIAN PRODUCERS

With over 48 million affluent consumers in a densely populated area and a GDP of $ US22,000 per capita, there is a growing demand from consumers for high-quality, low-cost, healthy, convenient foods providing good opportunities for Victorian suppliers.

South Korea relies on imports to satisfy around 60-70% of its food requirements, and this figure has been increasing in recent years as local agriculture and food production fails to keep pace with increasing demand.

Health and wellness issues have become major concerns for most Koreans, mainly due to an ageing population and belief that healthy eating is an essential part of a healthy lifestyle. Many consumers choose foods according to their functional attributes and health and wellness is expected to be a major aspect driving the growth rate in the food sector.

Food safety continues to be a primary concern of the consumer, with purchasing of organic products continuing to grow in popularity. The non alcoholic beverage market has continued to grow, especially in the area of fresh fruit juices and juice based beverages, bottled waters and ready to drink teas.

Another significant area of growth is that of convenience foods. Increasing numbers of dual- income families and single-parent households will see growth in packaged pre-prepared foods. Food manufacturers can find opportunities in developing more convenient healthier food products.

Korea offers diversity of market channels to Australian exporters. Apart from a competitive retail sector that includes convenience stores, hypermarkets, supermarkets and department stores, Korea has a vibrant and diversified food service sector. Recent trends have included the development of a wide variety of retail franchises including coffee shops and bakeries.

Ongoing market liberalisation and reforms have encouraged the development of an internationally competitive food industry. Food safety is of critical importance to consumers and the government continues to tighten regulatory systems in response to food incidents and miss-labelling scandals.

Australia-South Korea Free Trade negotiations are currently underway (DFAT, 2008). Under such an FTA, Australian farm exports are expected to benefit from reductions in trade barriers and improved market access in meat, dairy and grains.

Victoria is in a unique position of potentially influencing South Korea’s trade, culture and lifestyle. Victoria is close geographically, with a small time difference; while Australia is one of the top destinations for Korean students. Currently, South Korean students rank third in the number of international students enrolled at Australian academic institutions; and they are one of the largest groups applying for working holiday visas (Korea times, 2008c). This exposure to Australia has the potential to influence the recognition and purchase of Australian products and brands. There are opportunities for organic beef, sugar, milk powder, cooking aids and innovative and functional foods.

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Phillips S. and Youngsook, 2006, ‘South Korea Warms to Environmentally Friendly Products September 2005’, USDA FAS Worldwide, viewed 7 August 2008, http://www.fas.usda.gov/info/agexporter/2005/September/SKorea%20enviro%20products.htm

Planet Retail, 2008, ‘Grocery Retailing in South Korea’, viewed 27 July 2009, http://www.planetretail.net/

RNCOS 2007, ‘World Organic Foods and Beverages Report 2006’, viewed 6 August 2008, http://www.rncos.com/Report/IM042.htm

RNCOS 2008, ‘South Korea- Future Leader in Organic & Processed Food Industry’, 17 March 2008, viewed 5 August 2008, http://www.prlog.org/10057525-south-korea-future-leader-in-organic-processed-food- industry.html

United Nations undated, viewed 3 September 2008, http://www.un.org/esa/agenda21/natlinfo/countr/repkorea/agriculture.pdf

USB 2008, ‘Ageing Asia - the key beneficiaries’, viewed 16 August 2008, http://www.ubs.com/1/e/media_overview/media_asiapacific/releases?newsId=144275

USDA 2006, ‘Republic of Korea, Organic Products, Organic Market Brief Update 2006’, United States Department of Agriculture, Foreign Agricultural Service, Global Agriculture Information Network Report, viewed 20 June 2008, http://www.fas.usda.gov/gainfiles/200701/146280032.pdf

USDA 2007, ‘South Korean Consumers Opt for Convenience’, United States Department of Agriculture Foreign Agricultural Service Worldwide, viewed 6 August 2008, http://www.fas.usda.gov/info/fasworldwide/2007/06-2007/SouthKoreaRetail.htm

USDA 2008a, ‘South Korea – Issues and Analysis’ United States Department of Agriculture, Economic Research Service, viewed 8 August 2008, http://www.ers.usda.gov/Briefing/SouthKorea/basicinformation.htm

USDA 2008b, ‘South Korea – Trade’ United States Department of Agriculture, Economic Research Service 1 August 2008, viewed 8 August 2008, http://www.ers.usda.gov/Briefing/SouthKorea/processedproducts.htm

USDA 2008c, ‘South Korea – Processed Products’ United States Department of Agriculture, Economic Research Service 1 August 2008, viewed 8 August 2008, http://www.ers.usda.gov/Briefing/SouthKorea/processedproducts.htm

USDA 2008d, ‘Organic Market Update 2008’ GAIN Report No. KS8037, accessed 17 July 2009 http://www.fas.usda.gov/gainfiles/200809/146295782.pdf

USDA 2009, ‘Retail Food Sector Biennial Brief’, GAIN Report No. KS9006, accessed 17 July 2009-09 http://www.fas.usda.gov/gainfiles/200902/146327301.pdf

Useful Websites:

Australian Trade Commission Korea: Department of Primary Industries (Victoria) http://www.austrade.or.kr/www/english/index.asp www.dpi.vic.gov.au/trade

Business Victoria: United States Department of Agriculture: www.export.vic.gov.au www.usda.gov

Department of Foreign Affairs and Trade: www.dfat.gov.au

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