Required Report - public distribution

**Date:** 9/22/2004

**GAIN Report Number:** KS4053

K

**Korea, Republic of**

**Exporter Guide**

**Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Susan B. Phillips, Deputy Director

Agricultural Trade Office, Seoul

**Prepared by:**

Seh Won KIM, Ag. Marketing Specialist

**Report Highlights:**

Korea is the fifth largest market for U.S. agricultural products. Total
Imports of agricultural products were \$13.4 billion in 2003 and are
projected to reach \$14.4 billion in 2004. Total imports of agricultural
products from the U.S. will be about \$3.5 billion in 2004.

This report serves as a general guide to prospective U.S. agricultural
exporters seeking to enter the Korean market. It provides a market
overview, tips on how to do business in Korea, and information on the
market structure and trends.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Seoul ATO \[KS2\]

\[KS\]

Table of Contents

[SECTION I. MARKET OVERVIEW 3](#section-i.-market-overview)

[Table 1. Agricultural Imports by Sector
3](#table-1.-agricultural-imports-by-sector)

[Table 2. Advantages and Challenges for U.S. Consumer-Oriented Foods
3](#table-2.-advantages-and-challenges-for-u.s.-consumer-oriented-foods)

[SECTION II. EXPORTER BUSINESS TIPS
4](#section-ii.-exporter-business-tips)

[A. Where to Start 4](#a.-where-to-start)

[B. Local Business Customs 5](#b.-local-business-customs)

[C. General Consumer Tastes and Preferences
6](#c.-general-consumer-tastes-and-preferences)

[D. Food Standards and Regulations
7](#d.-food-standards-and-regulations)

[E. General Import and Inspection Procedures
7](#e.-general-import-and-inspection-procedures)

[F. Labeling Requirements for Processed Food
9](#f.-labeling-requirements-for-processed-food)

[G. Food Code and Food Additive Code (Administered by KFDA)
11](#g.-food-code-and-food-additive-code-administered-by-kfda)

[H. Tariffs 11](#h.-tariffs)

[I. Sanitary and Phytosanitary Certification Requirements -- Animals,
Meat, Plant, etc.
12](#i.-sanitary-and-phytosanitary-certification-requirements-animals-meat-plant-etc.)

[J. Product Certification 12](#j.-product-certification)

[K. StarLink-Free Certification 14](#k.-starlink-free-certification)

[L. Minimum Amount of the Initial Commercial Shipment
14](#l.-minimum-amount-of-the-initial-commercial-shipment)

[M. Copyright and/or Trademark Laws
15](#m.-copyright-andor-trademark-laws)

[N. U.S. Laboratories Authorized to Inspect on Behalf of the Korean
Government (KFDA)
15](#n.-u.s.-laboratories-authorized-to-inspect-on-behalf-of-the-korean-government-kfda)

[O. Documents Generally Required 16](#o.-documents-generally-required)

[SECTION III. MARKET SECTOR STRUCTURE AND TRENDS
16](#section-iii.-market-sector-structure-and-trends)

[A. Retail Food Sector 16](#a.-retail-food-sector)

[Table 1. Breakdown of Retail Market Sales in Korea
16](#table-1.-breakdown-of-retail-market-sales-in-korea)

[Table 2. Food Sales by Retail Format
17](#table-2.-food-sales-by-retail-format)

[B. Hotel, Restaurant and Institutional (HRI) Industry
18](#b.-hotel-restaurant-and-institutional-hri-industry)

[Table 3: Average Monthly Expenditures on Food Items per Household
18](#table-3-average-monthly-expenditures-on-food-items-per-household)

[Table 4 - Profiles of Major Western Fast Food Restaurant Chains in 2003
19](#table-4---profiles-of-major-western-fast-food-restaurant-chains-in-2003)

[C. Domestic Food Processing Sector
20](#c.-domestic-food-processing-sector)

[Table 5. Output of Food Processing by Sector: 2002
20](#table-5.-output-of-food-processing-by-sector-2002)

[D. Trends in Holiday Sales 21](#d.-trends-in-holiday-sales)

[E. Home Shopping Sales 21](#e.-home-shopping-sales)

[SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS
21](#section-iv.-best-high-value-product-prospects)

[SECTION V. KEY CONTACTS AND FURTHER INFORMATION
22](#section-v.-key-contacts-and-further-information)

[APPENDIX. STATISTICS 24](#appendix.-statistics)

[Table A. KEY TRADE & DEMOGRAPHIC INFORMATION
24](#table-a.-key-trade-demographic-information)

[Table B. KOREAN CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS
25](#table-b.-korean-consumer-food-edible-fishery-product-imports)

[Table C. TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE FISHERY PRODUCTS
26](#table-c.-top-15-suppliers-of-consumer-foods-edible-fishery-products)

#  

# SECTION I. MARKET OVERVIEW

The Korean gross domestic product (GDP) grew only 3.1 percent in 2003,
significantly down from 7 percent in 2002 mainly due to record-low
domestic consumption. However, the Bank of Korea\'s current estimate for
2004 GDP growth is 5.2 percent thanks to strong exports of Korean goods,
currently the main engine of economic growth in spite of prolonged
economic slump and low domestic spending. Per capita gross Domestic
Product reached \$12,628 in 2003, up from \$11,479 in 2002.

Korea imports about 70 percent of its agricultural product needs. About
the size of Indiana, the 2004 population of Korea is estimated at 48
million. Of the total population, about 47 percent are concentrated in
the metropolitan Seoul area (Seoul, Inchon and Kyunggi Province).

Korea is the fifth largest market for U.S. agricultural products. Total
Imports of agricultural products were \$13.4 billion in 2003 and are
projected to reach \$14.4 billion in 2004. The total imports of
agricultural products from the U.S. will be about \$3.5 billion in 2004,
about the same as the previous year thanks to the big increase in some
products including corn.

## Table 1. Agricultural Imports by Sector

**(Millions of U.S. Dollars, Based on CIF Value)**

  --------------- ----------- ---------- ----------- ---------- ----------- ----------
  **Category**    **2002**               **2003**               **2004      
                                                                (f)**       

                  **World**   **U.S.**   **World**   **U.S.**   **World**   **U.S.**

  Consumer        3,474       1,346      3,779       1,579      3,416       889

  Intermediate    3,142       842        3,063       823        3,527       741

  Bulk            2,749       772        3,011       839        3,592       1,584

  Fish & Seafood  1,820       165        1,900       144        2,005       123

  Forest Products 1,718       147        1,668       143        1,838       169

  TOTAL           12,903      3,272      13,421      3,528      14,378      3,506
  --------------- ----------- ---------- ----------- ---------- ----------- ----------

Note: (f) is a forecast based on January-July data.

Source: Korea Trade Information Service (KOTIS), compiled by ATO Seoul

Changes in Korean lifestyle and dietary culture, along with remarkable
development in socio-economic environment, have resulted in
significantly expanded demand for processed food and beverage products.
Increasing affluence, more women in the workforce, and a well-traveled
younger generation looking for foods with an international flavor are
promoting the rise in popularity of convenience stores, bulk retail
outlets, and western-style and family restaurants. The demand for
products, such as frozen vegetables, sauce preparations, and
confectionery items is growing and the domestic processing industry
lacks the capability to supply these items. Additionally, local
agricultural output currently does not meet the demand of the local
processing industry.

## Table 2. Advantages and Challenges for U.S. Consumer-Oriented Foods

  ----------------------------------- -----------------------------------
  **Advantages**                      **Challenges**

  Equal or superior quality to        Frequent changes in food
  domestic products                   regulations

  Increasing affluence of Koreans     Importers lack knowledge of product
                                      sources

  Diminishing resistance to imported  Food safety concerns and biotech
  foods                               issues

  U.S. has strong brand power and     High Marketing Costs
  country image in Korea              

  Low tariffs for processed products  Onerous inspection/customs
                                      clearance procedures

  Almost all food products are        Tolerances of
  importable                          additives/preservatives are
                                      different from the U.S.
  ----------------------------------- -----------------------------------

# SECTION II. EXPORTER BUSINESS TIPS 

## A. Where to Start

When considering the Korean market, exporters should conduct preliminary
research to determine if the market is appropriate for the product.
Possible sources of market information include Korean importers, US
state departments of agriculture, the USATO website and the US
Department of Commerce. Lists of Korean importers, by product, can be
obtained from the U.S. Agricultural Trade Office, or through the Foreign
Agricultural Service in Washington, D.C. The next step might include
sending catalogues, brochures, product samples, and price lists to
prospective importers as a way of introducing the company and products.

Once contact is established, it is advisable to visit the importer(s) in
person, which will increase the seller\'s credibility with the Korean
importer and give an opportunity to see the Korean market first hand. In
Korea the clichés about \"seeing is believing\" and \"one visit is worth
a 1,000 faxes\" are especially true. There is no substitute for
face-to-face meetings. The supplier or exporter should bring samples as
well as product and company brochures including price lists, shipping
dates, available quantities, and any other information needed for
negotiating a contract. While information in English is acceptable,
having it in Korean is helpful. A general overview of the firm in Korean
is a good plan to start.

Another way of finding potential importers is to participate in local
food shows to showcase your products to a larger audience. Many Korean
importers attending these shows are looking to establish reliable
long-term trading relationships. Show participation enhances initial
contacts with importers, agents, wholesalers, distributors, retailers
and others in the food and beverage industry.

The Food & Hotel Korea 2005 will be held in Seoul at the COEX, March
16-18, 2005. It presents an excellent opportunity to explore possible
market opportunities in Korea. This show is a [trade only]{.underline}
show and targets importers, wholesalers, distributors, retailers,
hotels, restaurants, food processors, media, etc. It is currently the
only USDA-supported food show in Korea.

American companies should be sensitive to the uniqueness of the Korean
market. An approach or a product that was successful in another market
does not mean it will be applicable to Korea. It will be necessary to
renew the product design, packaging and market approach for the Korean
situation, requirements and tastes. A well-developed relationship with a
Korean importer is an asset when determining how best to market a
product.

For exporters of high-value niche market products, the Mid-America
International Agri-Trade Council (MIATCO) offers a Distributor
Development Service (DDS), which provides a series of cost-effective
services designed to assist U.S. suppliers with specific information on
whether and how to approach the Korean market. It will also assist U.S.
food companies in establishing and solidifying contacts in the Korean
import, distribution, retail, food service, or food processing sectors
through trade servicing and in-market assistance. For information on the
MIATCO DDS, see contact information in Section V of this report.

Finally in the Korean market, never take anything for granted. Be ready
for the unexpected. Just because the first container cleared customs
does not mean the second one will. Be open for new information,
attentive and patient.

## B. Local Business Customs

Korea is a country of tradition. While importers understand
international business, noting the cultural nuances will facilitate
building a business relationship. The following are some business tips
U.S. suppliers should keep in mind when dealing with Korean businessmen.

1.  Obtaining Information: To obtain information from a Korean importer,
    it is best to ask directly and explain why the information is
    important. Koreans may require more of an explanation than Americans
    are used to providing. A lengthy discussion about the seller and the
    firm\'s history may be needed. If you don not receive a successful
    reply, there is nothing wrong with politely asking again. In Korea,
    it is often seen as a sign of seriousness to continue presenting
    your request. Additionally, Koreans will rarely say, \"no\"
    directly. Instead they will say something is \"very difficult.\"

2.  Initial Communications: Koreans prefer to deal face-to-face. As
    such, cold calling (or cold e-mailing) is very difficult in Korea.
    When corresponding through written communication, start with words
    of appreciation, clearly mark the recipient's name, title, and
    division (as many Koreans have the same last name), avoid using long
    complex sentence and slang, indicate a reasonable time frame for a
    response, and close with additional words of appreciation.

3.  Relationships: Personal relationships are very important. Koreans
    like to maintain long-term relationships and are often very loyal.
    Developing a relationship with a potential Korean partner is vital
    to establishing your credibility. If a seller has already entered
    this market, the established contacts can help to build trust with
    the new one.

4.  Introductions: It is very helpful to have a formal introduction to
    the person or company with whom the seller wants to do business in
    Korea. Meeting the right person in a Korean company is almost always
    dependent on having the right introduction.

5.  Evening Gatherings: The office may not be the best place to discuss
    business matters or propose new ideas, especially when dealing with
    the older generation. It is helpful to get together in the evening
    for a less formal, but no less important, meeting. Korean
    businessmen often gather after work to see friends over drinks.
    There many of the hierarchical traditions slacken. The rules of
    society weigh heavily on Korean behavior, and drinking is one of the
    few times they can be themselves. Although Koreans are wary of
    people who refuse to drink or who drink moderately, foreigners are
    given a little more flexibility especially if you can offer an
    excuse of health or religion. A useful, cultural point to note in
    this situation is that it is impolite to pour one\'s own drink. So,
    if you want a drink, do not be bashful about pouring a drink for
    others.

6.  Name Cards and Address: The exchange of name cards is usually the
    first item of business. In Korea people seldom call others by their
    first names. Instead, they use surnames (such as Mr. Hong) or title
    and surname together (such as President Hong). Never use a first
    name unless the person specifically asks to be called by their first
    name. Surnames are often written first on a Korean business card,
    for example Hong, Gil Dong would be referred to as Mr. Hong. For
    Westerners, it is difficult to know from the given names if the
    contact is a man or a woman.

7.  Meetings: Small talk is a good way to break the ice at the beginning
    of a meeting, and a short, orderly meeting with an agenda provided
    in advance will go along way towards the completion of a successful
    meeting. It is very likely that the meeting will be with a senior
    staff member whose English may not be very good. At times, a junior
    staff member might translate but, if not, be prepared to provide all
    materials and/or requests in writing. Pay attention to seating
    arrangement, usually the senior staff member will sit at the head of
    the table. Decisions are usually made from the top down in Korea.
    When making initial visits, hiring a translator can be a valuable
    investment. Take time to educate the translator before hand so some
    familiarity with terms can be worked out.

8.  Dress: It is recommended to wear a business suit and tie when
    meeting or visiting Korean importers for the first time. First
    impressions are important.

9.  Resolving Conflicts: Koreans do not like to appear to have \"lost
    face.\" It is important to always try to give something even if you
    think you are in the right. It will help the conflict resolve more
    quickly. Visible anger is not useful in a confrontation. Instead,
    silence is a more effective method of conveying displeasure.
    Apologizing can also be useful and does not always mean you feel you
    were wrong. Lastly, never direct your criticism directly at one
    specific person, but at an entire group.

10. Special Note: One idiosyncrasy of the Korean language is that
    Koreans say "yes" when they might mean "no" or vice versa. For
    instance, in Korean, "Wouldn't you like to go home?" if answered
    with a "yes" means 'that's right, I would not like to go home\". To
    avoid confusion, reply with a full sentence, "yes, I would like to
    go home."

## C. General Consumer Tastes and Preferences

Traditionally, Korean dishes require a lot of preparation time. Small
restaurants specializing in only a few dishes are still common. Home
preparation, however, is becoming increasingly rare. It is not unusual
for working members of the household to have business dinners five
nights a week, which is one reason restaurant consumption has continued
to grow despite the lackluster economic situation. For home consumption,
busy consumers can purchase ready-made local-style food items such as
kimchi or bulgogi (barbecue) at local grocery or convenience stores.

There is a general preference for national brand products and/or
products that have long been recognized in the market. Never the less,
the younger generation has had a lot of exposure to Western- style
foods, especially American food. Approximately 40,000 Korean elementary
and middle school students study in the United States and, thus, they
are somewhat accustomed to US brands and to the taste of American
products.

Korean consumers also like natural, fresh food products, such as health
foods, functional foods and diet foods. As a result, the organic market
is a segment that has been developing rapidly. Koreans have always
looked to their food to provide a functional or health benefit and foods
made without the use of pesticides or insecticides are very appealing.

It is also important to note that Korean consumers are very sensitive to
food safety issues. They tend to get their information through the media
and trust it in spite of the often-misleading information. Once a "food
scare" rumor gets publicity, that food is affected and its reputation is
quickly damaged.

## D. Food Standards and Regulations

Food standards and regulations are subject to frequent change. U.S.
exporters need to ensure that all necessary customs clearance
requirements have been verified with local authorities through the
Korean importer before the sale conditions are finalized. Final import
approval of any product is always subject to the standards and
regulations as interpreted by the Korean official at the time of product
entry.

There are many food standards and regulations. This report describes
only the basic guidelines of Korea's import requirements. For details on
Korean import regulation, see the Food and Agricultural Import
Regulations and Standards (FAIRS) Reports -- KS4039 dated July 30, 2004.

## E. General Import and Inspection Procedures

The Korea Customs Service (KCS), the Korean Food and Drug Administration
(KFDA), the National Quarantine Office (for ports that do not have KFDA
regional offices), the National Veterinary Research & Quarantine Service
(NVRQS) and the National Plant Quarantine Service (NPQS) are the
agencies involved in the import clearance process. Imports of
agricultural products generally must receive clearance from several
organizations and are thus more likely to encounter port delays than
other imported products. In addition, other organizations may be
involved in regulating imports through the administration of licenses
or, in some cases, quotas for agricultural products.

KCS is responsible for ensuring that all necessary documentation is in
place before the product is finally released from the bonded area. KCS
operates an Electronic Data Interchange System (EDI) and KFDA operates
the imported food network system through their regional offices and
national quarantine offices. The KFDA network system is connected to the
EDI system, which permits KFDA inspection results to be transmitted more
quickly, which shortens the KCS clearance time. Products subject to
plant or animal quarantine inspections must be cleared by the
appropriate quarantine inspection authority before KCS provides
clearance.

## 

##  

**Korea Food & Drug Administration (KFDA) Import Procedures**

Flow Chart

## ![](media/image2.wmf)

1\. The importer or the importer's representative submits the "Import
Declaration for

Food and other required documents"

2\. The type of inspection to be conducted is determined in accordance
with the

guidelines for inspection of imported food products. The types of
inspection for a

given food product include: Document Inspection, Visual Inspection,
Laboratory

Inspection, and Random Sampling Examination.

3\. If a product is subject to visual inspection, laboratory inspection
and/or random

sampling, the KFDA inspector will conduct a field examination and take
samples

for the laboratory test.

4\. KFDA conducts the conformity assessment from the information
collected, using

such items as test results, document inspection results, etc.

5, If a product complies with the Korean standards, KFDA issues a
certificate for

import. The importer can then clear the product with the KFDA import

certificate.

6\. If a product does not comply with the Korean standards, KFDA will
notify the

applicant and the regional customs office on the nature of the
violation. The

importer decides whether to destroy or return shipments to the exporting

country or use it for inedible purposes. If the violation can be
corrected, as with

labels, the importer can reapply for the inspection after making the
corrections.

7\. For perishable agricultural products, such as fresh vegetables,
fruits, etc., an

importer can clear the products prior to completion of the laboratory
test with a

pre-certificate for an import report issued by KFDA. However, in this
case, the

importer should be able to track down the distribution of the given
product so it

can be recalled, in case the laboratory test indicates a violation.

On August 18, 2003, MHW issued a revision of the Ministerial Ordinance
of the Food Sanitation Act that tightened the import inspection program
by requiring a laboratory test of agricultural products every year and
for processed products every three years. The U.S. Government expressed
concern to the Korean Government about the revision as it would place
additional burden on U.S. exporters without justification. In response,
the Korean Government reduced the number of chemicals to be tested for
and lowered the testing fee from 2,245,700 won (about \$1,900) to
577,800 won (about \$500) on May 21, 2004.

If products are subject to animal quarantine inspection or plant
quarantine inspection, in addition to food inspection by KFDA, the
animal quarantine certificate or plant quarantine certificate issued by
the National Veterinary Research & Quarantine Service (NVRQS) or the
National Plant Quarantine Service (NPQS) is required for product
clearance, in addition to the KFDA certificate. Inspection by NPQS or
NVRQS can take place simultaneously with the KFDA inspection.

## F. Labeling Requirements for Processed Food 

There are many labeling requirements, such as nutritional labeling
requirements, organic labeling requirements, labeling standards for
livestock products, labeling regulations for non-processed biotech
products, labeling standards for recombinant foods, liquor labeling
requirements, and country of origin labeling requirements. For details
on these specific labeling requirements please refer to the Food and
Agricultural Import Regulations and Standards (FAIRS) Reports -- KS4039
dated July 30, 2004.

**Korean Language Label:** This is a requirement. Korean language
stickers may be applied in lieu of Korean language label. The sticker
should not be easily removable and should not cover the original
labeling. (Please note: the principal display panel must contain the
product name, product type and content information. If this is not
feasible, such information shall be provided in a Korean language
sticker using a 12-point or larger font pitch size.

**1. Product Name:** The product name should be identical to the product
name declared to the licensing/inspection authority.

**2. Product type:** This is mandatory for specially designated
products, such as teas, health supplementary foods, etc.

**3. Importer\'s name and address, and the address where products may be
returned or exchanged in the event of defects.**

**4. Manufactured date -- month, and year:** This is mandatory for
specially designated products, such as lunch box, sugar, liquor, and
salts. For liquors, a manufacture number (lot number) or bottling date
can substitute for the manufactured date.

**5. Shelf life:** Food products should clearly identify the
manufacturer-determined shelf life. If various kinds of products are
packaged together, the shelf life expiration date of the product with
the shortest life should be noted on the label.

**6. Contents:** Weight, volume or number of pieces. If the number of
pieces is shown, the weight or volume must be indicated in parentheses.

**7. Ingredient(s) or raw material(s) and a percent content of the
ingredient(s):** The name of the major ingredient must be included on
the label as well as the names of at least the next four principle
ingredients. These should be listed with the highest percentage
ingredient first, followed in descending order by the others.
Artificially added purified water does not count as one of the five
major ingredients. Some food additives required by the Labeling
Standards for Food et al. need to be indicated on the label. Besides the
top five ingredients and food additives, an indication of food items
known to be food allergens is mandatory. Food items considered as food
allergens include eggs, milk, buckwheat, peanuts, soybeans, wheat,
mackerel, crab, pork, peaches and tomatoes. Any food product containing
one or more of the above 11 allergens, as a raw ingredient
(ingredients), must indicate the name (names) on the Korean language
label.

**8. Nutrients:** Only special nutritional foods, health supplementary
foods, bread and bread loaf, noodles (cooked noodle, fried noodle,
gelatinized dry noodle, and improved cooked noodle), retort foods,
products for which nutritional labels are sought, and products for which
a nutrient emphasis mark is desired are subject to nutritional labeling.

**9. Other items designated by the detailed labeling standards for food
et al.:** This includes cautions and standards for use or preservation
(e.g., drained weight for canned products, radiation-processed products,
etc.).

The revision, dated July 2000, introduced the principal display panel
labeling requirement, the labeling criteria for organic products, etc.,
and removed the food category labeling requirement for the majority of
food products.

Please note the principal display panel must contain the product name,
product type, and content information. If this is not feasible, such
information shall be provided in a Korean language sticker using a
12-point or larger font size.

**[Cases where the above application of the labeling requirements is
exempted are as follows]{.underline}:**

1\. Agricultural products such as grains, fishery items, such as whole
frozen fish, and fruits, that are loose, in a container or packaging,
etc.

2\. Foods, etc., to be used for manufacturing or cooking for a company's
own use. (Documents that show such intent need to be provided.) The
package for such foods shall be labeled with the name of the
manufacturer and manufacture date or shelf life.

3\. Products imported for the purpose of acquisition of foreign
currency, under the provisions of Article 34 of the Ministerial
Ordinance to the Foreign Trade Act.

##  G. Food Code and Food Additive Code (Administered by KFDA)

**Food Code**

The Food Code contains general standards and specifications governing
food products and individual standards and specifications for 124 food
categories, delineated into 19 groups. The revision issued on April 1,
2004 includes new Maximum Residue Limits (MRLs) and modifications of
MRLs, antibiotic residual standards, etc. The revision made on May 24,
2004 expanded the list of food products for which irradiation is
permitted. The Code was last updated July 16, 2004.

The Food Code stipulates standards and specifications for manufacturing,
processing, usage, cooking, storage of food and equipment, containers
and packaging for food products. It specifies the standards for maximum
residue levels of agricultural chemicals, antibiotics, synthetic
antibiotics, hormones, radioactive ray standards, testing methods, etc.

**Food Additive Code**

The "Food Additive Code" guides the use of all additives in foods in
Korea. As of July 2004, Korea had a positive list of 615 approved food
additives. Food additives are grouped into three categories: (a)
chemical synthetics, (b) natural additives, and (c) mixture substances.
Most additives and/or preservatives are approved and tolerance levels
are established on a product-by-product basis in Korea. This creates
difficulties as tolerances can vary from product to product. Getting a
new additive added to the approved list can be time consuming and
troublesome. Even though there may be an established CODEX standard for
a given food additive, if that food additive is not registered in the
Korean Food Additive Code, or even if registered but usage in a certain
food product is not specified, use of that food additive in the given
food product is prohibited. This means that only food additives
registered in the Korean Food Additive Code are allowed for use in food
products, in accordance with the usage standards specified in the Food
Additive Code.

## H. Tariffs 

Tariffs vary considerably from product to product. In general, tariff
rates are higher for products that are produced domestically. Processed
products generally have lower tariffs. Exporters can contact the ATO for
specific information on tariff rates.

## I. Sanitary and Phytosanitary Certification Requirements -- Animals, Meat, Plant, etc.

Sanitary and phytosanitary certificates issued by the exporting
country's inspection authority are required for live animals, plants and
meat products, such as beef, pork, poultry, etc. This requirement is in
accordance with the Livestock Epidemics Prevention & Control Act, the
Plant Protection Act, and the Livestock Processing Control Act,
respectively.

For the United States, the U.S. Department of Agriculture (USDA), Animal
& Plant Health Inspection Service (APHIS), issues sanitary and
phytosanitary certificates for live animals and plants, while the USDA,
Food Safety & Inspection Service (FSIS), issues health certificates for
meat products.

Korea requires pre-approval of meat facilities, including slaughter
plants, processors, warehouses, etc., prior to export of the product to
the Korean market. Pre-approval is facilitated by registration with FSIS
and listing in the FSIS Meat, and Poultry Inspection Directory. Further,
it is advised that U.S. companies wanting to export meat products to
Korea first verify that the supplying U.S. facilities are approved by
Korea.

The "issuance date" of both health and phytosanitary certificates shall
be prior to the "on-board date" listed on the Bill of Lading. The
"inspection date" on a certificate must be prior to the departure date.
To prevent unnecessary delay at the port of entry, the certificate
"issuance date" should be prior to the departure date of shipments.

Current information on which U.S. livestock and poultry products are
eligible for export to the Korean market can be found on the website of
the USDA, FSIS at
(<http://www.fsis.usda.gov/Frame/FrameRedirect.asp?main=http://www.fsis.usda.gov/OFO/export/KOREASO.htm>).
This website also provides guidance in what documents need to accompany
livestock product shipments destined for Korea.

## J. Product Certification

Plant and meat quarantine inspections are very strict in Korea. No plant
and meat products will clear Korean Customs without the necessary
certificates and required information.

1.  **Beef and Beef Products:** Red meat products must be accompanied by
    the following FSIS certificates:

> a\. FSIS Form 9060-5, Meat and Poultry Export Certificate of
> Wholesomeness

b\. FSIS Form 9305-4, Certificate for Export of Meat to the Republic of
Korea

> \*On December 23, 2003, in response to the finding of one positive
> case of BSE in Washington State, an animal that had been imported from
> Canada, Korea banned all ruminant animals and their products
> originating from the United States. Korea has similar bans on all
> ruminant products coming from 34 countries -- 30 European nations,
> Japan, Israel, Canada and the United States. A total of 680 U.S.
> products have been banned due to the BSE situation. Only dairy
> products, hides and skins, semen of ruminant origin, fetal calf serum,
> porcine gelatin, porcine plasma powder, pet food (without any ruminant
> ingredient in retail packages), tallow (with an \"insoluble impurity\"
> of 0.15 percent or lower), and fish meal produced in a facility
> dedicated for producing only fish meal can be imported from approved
> plants. Korea has indicated its willingness to allow imports of the
> following products. However, details on certification, plant approval,
> etc., have yet to be completed. The products are: 1) Gelatin and
> collagen originating from hides and skins only; 2) Dicalcium
> phosphates free of protein and fat; and, 3) Hydrolyzed poultry protein
> for animal feed ingredients. The Korean government lifts the import
> ban after reviewing product by product.
>
> **2. Pork and Pork Products**
>
> a\. FSIS Form 9060-5, Meat and Poultry Certificate of Wholesomeness
>
> b\. FSIS Form 93-5-5, Certificate for the Export of Pork Meat to the
> Republic
>
> of Korea
>
> **3. Poultry Products**
>
> a\. FSIS Form 9060-5
>
> b\. FSIS Form 9305-2A
>
> \* Korea suspended import inspection of U.S. poultry and poultry
> products, except for Specific Pathogen Free (SPF) hatching eggs and
> cooked products that have been processed (e.g. heat treated to kill
> the virus), beginning February 7, 2004, based on the report of the
> Avian Influenza (AI) outbreak in Delaware. The suspension placed on
> import inspection of U.S. poultry products was shifted to a ban
> February 24, 2004, after confirmation of the outbreak of Highly
> Pathogenic Avian Influenza (HPAI) in Texas.
>
> Since the outbreak of HPAI in the United States, exports of cooked
> poultry products and products containing eggs as ingredients must
> comply with heat treatment requirements established by the Korean
> government. Heat treatment requirements are as follows:

\(1\) Heat treatment for cooked poultry products:

> 70° C (158° F) for a minimum of 30 minutes; or, 75° C (167° F) for a
> minimum of 5 minutes; or, 80° C (176° F) for a minimum of 1 minute or
> equivalent treatment.
>
> \(2\) Heat treatment for products containing eggs, including dairy
> products such as ice cream:
>
> 55° C (131° F) for a minimum of 15 minute, 60° C (140° F) for a
> minimum of 5 minutes; or 64° C (147° F) for a minimum of 4.5 minutes;
> or equivalent treatment.
>
> \(3\) A heat treatment statement shall be provided on a form of the
> certificate issued by the U.S. government agency, including FSIS,
> APHIS, etc.
>
> \*USDA is discussing with the MAF a lifting of the import ban placed
> on fresh and frozen poultry products after the minimum 6-month
> probation period. The ban on live birds has been lifted.
>
> **4. Sheep and Goat Meat and Sheep and Goat Meat Products**
>
> a\. FSIS Form 9060-5, Meat and Poultry Certificate of Wholesomeness

b\. FSIS Form 9305-6, Certificate for Export of Sheep and Goat Meat and

Sheep and Goat Meat Products to the Republic of Korea

**5. Pork Casings**

a\. FSIS Form 9060-7

b\. FSIS Form 9305-5

> **6. Processed Meat Products:** Processed meat products such as
> sausages,
>
> hamburger patties and ground meat do not need to indicate slaughter
>
> information on the FSIS Form 9305-4. These products are required to
>
> indicate only processing information.
>
> 7\. **Fresh Products:** Fresh fruits, vegetables and nuts (except
> walnuts) must be
>
> accompanied by:

a.  Phytosanitary Certificate, PPQ Form 577, issued by USDA/APHIS
    (Animal & Plant Health Inspection Service)

b.  Some fresh products are prohibited and others require additional
    documentation besides Form 577. NPQS should be consulted about
    specific documentation for each particular product.

The issuance date of the phytosanitary certificate shall be prior to the
departure date listed on the Bill of Lading. In order to prevent
unnecessary delays at the port of entry, it is further suggested that
the certificate issuance date be prior to the departure date of
shipments. In any case, the inspection date on a certificate must be
prior to the departure date.

> **8. Frozen Fruits and Vegetables** must be accompanied by either one
> of the
>
> following:
>
> a\. Certificate of Quality and Condition, Form FV-146CS issued by
>
> USDA/AMS (Agricultural Marketing Service)
>
> b\. Export Certificate PPQ Form 578, issued by USDA/APHIS
>
> **9. Vacuum Packed Shelled Walnuts** must be accompanied by a
> Phytosanitary
>
> Certificate, PPQ Form 577, issued by USDA/APHIS

## K. StarLink-Free Certification 

In December 2000, after KFDA detected StarLink protein in U.S. corn
shipments, imported food-grade corn and corn-based food products were
required to arrive with a StarLink-free certification issued by the
exporting country. For U.S. corn shipments, such certification should be
issued by the USDA, Grain Inspection, Packers, and Stockyards
Administration (GIPSA), or an accredited lab, to minimize potential
problems during inspection clearance. Regardless, the sales contract
should specify the terms for pre-shipment tests. For processed food
products containing corn as an ingredient, certification can be met with
a letter, statement, or certificate issued by the manufacturer or the
exporter stating the raw corn ingredient was \"StarLink-free.\" All US
origin food grade corn and corn-based products must provide a
StarLink-free certification at port of entry.

## L. Minimum Amount of the Initial Commercial Shipment 

On May 15, 2000, KFDA issued a revision to the \"Guideline for
Inspection of Imported Food Products.\" In the revision, KFDA added a
clause limiting the minimum amount of the initial commercial shipment,
which it would inspect directly. When the quantity of the imported food
is less than 100 kg, the imported food is required to be inspected by a
KFDA-recognized inspection organization rather than a regional KFDA
office or National Quarantine Services. Importers shall be responsible
for charges associated with import inspection. Detailed information is
available from the KFDA's English website -
[http://www.kfda.go.kr.]{.underline}

## M. Copyright and/or Trademark Laws 

The Korea Industrial Property Office is responsible for registration of
trademarks and for review of petitions related to trademark
registration. In accordance with the Trademark Law, the trademark
registration system in Korea is based on "a first-to-file system." A
person who registers a trademark first has a preferential right to that
trademark and the person who has a right over the trademark is protected
by the Law. In order to prevent any trademark dispute, U.S. companies
wishing or planning to conduct business in Korea are strongly
recommended to register trademarks first.

## N. U.S. Laboratories Authorized to Inspect on Behalf of the Korean Government (KFDA) 

KFDA operates a program that recognizes foreign laboratories as official
testing laboratories. This program aims to enhance the efficiency of
conducting inspection of imported food. KFDA authorizes foreign
laboratories and recognizes inspection certificates or certificates of
laboratory test results issued by these authorized laboratories. As of
now, there are two U.S. laboratories that have been authorized by KFDA.
They are:

> **1. Oregon Department of Agriculture's Export Service Center**
>
> The Oregon Department of Agriculture's Export Service Center (ESC) is
> a one-stop technical assistance center for U.S. food manufacturers and
> exporters. It is designed to reduce obstacles for exporting products.
> The ESC has been certified by the Korean Food & Drug Administration to
> do food related testing, such as residue and microbiological testing
> on food and beverages and food package testing, for products bound for
> Korea. A certificate of inspection from this lab usually expedites
> clearance inspections at Korean Customs. The ESC offers a range of
> technical services, including product evaluation and certification.
> They will evaluate products for foreign country requirements and issue
> a certificate that minimizes the chances of product rejection. For
> more information on the services which the Export Service Center
> provides contact:
>
> **Oregon Department of Agriculture**
>
> **Export Service Center**
>
> 1200 N.W. Naito Parkway, Suite 204
>
> Portland, Oregon 97209-2835
>
> Tel: 503-872-6644; Fax: 503-872-6615
>
> E-mail: esc-food@oda.state.or.us
>
> **2. [Omic USA Inc.]{.underline}**
>
> Omic USA is the second U.S. laboratory to be recognized by the Korea
> Food & Drug Administration as an official foreign testing laboratory.
> The contact information follows:
>
> **Omic USA Inc.**
>
> Mr. Ryuichi Kurosawa, President
>
> 1200 N.W. Naito Parkway
>
> Portland, Oregon 97209
>
> Tel: 503-224-5929; Fax: 503-223-9436

## O. Documents Generally Required

1.  Invoice

2.  Bill of Lading, or Airway Bill

3.  Packing List

4.  Certificate of Origin (not required if there is \"Made in USA\" on
    the label.)

5.  Ingredient List

6.  Processing Method

7.  Certificate of Production Date

8.  Packing Material (not required for bottles, cans and paper packages)

9.  Non-biotech (certification for corn, soybeans and potatoes)

10. Sanitary certificate (for meat, fruit, nuts, vegetables, plants,
    grains, etc.)

# SECTION III. MARKET SECTOR STRUCTURE AND TRENDS

Local eating habits have changed dramatically in recent years. A diet
that had long been based on rice became progressively more centered on
wheat and protein. At the same time, consumers sought more diversity and
became more quality oriented. Consumption of fish, fruits and vegetables
increased. Consumer preferences also shifted toward foods that were
convenient to cook rather than those that require lengthy preparation.
At the same time, demand for greater quality in terms of flavor and
nutrition increased. Consumers became more health and safety conscious
in their food buying habit as ingredients, packaging, shelf life and
toxicity became important determinants of purchasing behavior. Spending
habits also became diversified as individual preferences and a wider
variety of foods became available to meet consumer demand. These shifts
toward quality, variety, convenience, safety and health resulted not
only increased consumption of processed food, but also stimulated the
growth of the domestic food processing industry.

## A. Retail Food Sector 

The growth of overall retail market sales has slowed in recent years due
to the sluggish economy and shrinking sales of traditional retailers.
Advanced mass retailers (hypermarkets, department stores, convenience
stores, and on-line shopping) are estimated to account for about 35
percent of the overall retail market sales. Although diminishing,
traditional retail channels are still taking significant part of the
business in areas where new mass retailers have yet to penetrate. The
share of hypermarkets is likely to increase further as there still
remains room enough for an additional 100-200 stores.

Another rapid growing segment is 'on-line' retailing. More people are
shopping on-line for convenience and better assortment. Products
purchased on-line are also becoming more diverse from cosmetics to
electronics to healthy foods. Most of the leading off-line mass
retailers now also operate Internet stores and home-delivery service to
compete in the segment.

### Table 1. Breakdown of Retail Market Sales in Korea

+-----------------+-----------+-------+------------+-------+--------+
| Segment         | 2001      |       | 2002       |       | Growth |
|                 |           |       |            |       |        |
|                 |           |       |            |       | \%     |
+-----------------+-----------+-------+------------+-------+--------+
|                 | Sales     | Share | Sales\*    | Share |        |
+-----------------+-----------+-------+------------+-------+--------+
| Department      | \$13.2    | 10.3  | \$14.2     | 10.9  | 8.2 %  |
| Stores          | billion   | %     | billion    | %     |        |
+-----------------+-----------+-------+------------+-------+--------+
| Hypermarkets    | \$11.5    | 9.0 % | \$14.3     | 11.0  | 24.6 % |
|                 | billion   |       | billion    | %     |        |
+-----------------+-----------+-------+------------+-------+--------+
| Supermarkets    | \$4.1     | 3.2 % | \$4.3      | 3.3 % | 6.1 %  |
|                 | billion   |       | billion    |       |        |
+-----------------+-----------+-------+------------+-------+--------+
| Convenience     | \$1.4     | 1.1 % | \$2.2      | 1.7 % | 53.0 % |
| Stores          | billion   |       | billion    |       |        |
+-----------------+-----------+-------+------------+-------+--------+
| On-line         | \$4.4     | 3.5 % | \$9        | 6.8 % | 103.8  |
| Shopping        | billion   |       | billion    |       | %      |
+-----------------+-----------+-------+------------+-------+--------+
| Traditional     | \$92.9    | 73.0  | \$86.8     | 66.3  | \- 6.6 |
| Market          | billion   | %     | billion    | %     | %      |
+-----------------+-----------+-------+------------+-------+--------+
| Total           | \$127.5   | 100 % | \$130.7    | 100 % | 2.3 %  |
|                 | billion   |       | billion    |       |        |
+-----------------+-----------+-------+------------+-------+--------+

\* 2002 data are the most up-to-date statistics available currently.

### Table 2. Food Sales by Retail Format

  -------------------- -------------------------------- -----------------
  Year 2002            Percent of Sales from Food Items Total Food Sales

  Department Stores    15.1 %                           \$2.2 billion

  Hypermarkets         43.9 %                           \$6.3 billion

  Supermarkets         72.7 %                           \$3.2 billion

  Convenience Stores   47.7 %                           \$1 billion

  Home Shopping        17.8 %                           \$1.6 billion
  -------------------- -------------------------------- -----------------

Source: Analysis of Retail Industry Performance 2003

There are several types of retail sectors that handle foods and
agricultural products. They are: general market place (conventional open
air markets), periodic market places in rural areas (normally open once
every 5 days), department stores/shopping centers, supermarkets (super
chain companies and several thousand independent small supermarkets and
outlets), convenience stores, mom and pop stores, National Agricultural,
Fishery and Livestock Cooperative Federation Stores and discount stores
or membership warehouse type stores. Most retailers purchase imported
food products from importers and/or wholesalers. Few retailers import
food products directly. U.S. exporters should contact distributors and
importers, along with retailers.

Currently, the customs clearance process is so cumbersome and costly
that it is generally not cost effective to bring in mixed container
loads. Instead distributors bring in full containers of a particular
product, storing it in country or distribute it to retailers or other
distributors. Very few Korean retailers import food products directly,
rather buy these products from importers. This situation is not expected
to change in the near future.

1\. Department Stores/Shopping Centers. According to the Korea Chamber
of Commerce and Industry (KCCI), the average annual sales per store of
83 department stores/shopping centers surveyed amounted to \$181.4
million in 2003. In those sales food and beverage accounted for 18
percent in 2003. The three department stores in Korea: Lotte, Hyundai
and Shinsegae accounted for 74.5 percent of the total market, especially
the sales of Lotte Department Store were \$5.9 billion in 2003,
accounting for about 40 percent of the total sales of the department
stores in Korea. The prospect for the sales of department stores is not
bright because of low domestic consumption, prolonged economic slump and
fierce competition with hypermarkets/discount stores.

2\. Supermarkets. The average annual sales of the 1,140 supermarkets in
seven major cities surveyed by the KCCI were to \$2.23 million per store
in 2003. Of the average annual sales per outlet, food sales accounted
for 75.8 percent. The total sales of supermarkets in Korea is estimated
at about \$5.8 billion in 2003. The major players in this market are LG
Supermarket, Hanhwa Store, Haitai Mart, Top Mart and Lotte Supermarket
which accounted for about 26 percent of the total sales in the
supermarkets. This industry is expected to grow about 3-5 percent this
year.

3\. Convenience Stores. According to the KCCI report, there were 7,017
outlets belonging to seven largest convenience store companies in 2003,
up from 5,491 stores in 2002. The total sales of those seven companies
were \$2.9 billion in 2003, 25.4 percent from \$2.3 billion in 2002, and
the average annual sales per store was \$380,192 in 2003. Of the total
sales, food and beverage sales accounted for 58 percent in 2003,
compared to 58.6 percent in 2002. This sector is expected to grow about
10-20 percent per year over the next few years as the number of outlets
increases rapidly.

4\. Hypermarkets/Discount Stores. This is one of the fastest growing
segments in the retail sector. The total sales of hypermarkets were
\$16.3 billion in 2003. The five major players in this sector such as
E-Mart, Home Plus, Lotte Mart, Carrefour, and Wal-mart accounted for
73.6 percent of the total sales of this sector in 2003. The average
annual sales of the 247 discount stores surveyed by the KCCI in 2002
amounted to \$73.2 million per store. Of the average annual sales per
store, food and beverage products accounted for 55.8 percent. Imported
goods, including food, accounted for 7.3 percent in 2003, compared to
10.7 percent in 2002. Of imported goods, imported food accounted for
35.5 percent. This sector sales are expected to grow significantly,
about 10-20 percent per year over the next couple of years, as the
number of outlets increases.

For further detailed information on the retail food sector in Korea,
please refer to the Retail Sector Report KS4009 dated February 23, 2004.

## B. Hotel, Restaurant and Institutional (HRI) Industry

The Monthly Statistics of Korea (July 2004 Issue) shows that the average
monthly expenditures on food and beverage per household in cities in
2003 were \$425.60, accounting for 22.9 percent of a household\'s total
expenditures. The average persons per house in cities were 3.48 persons
in 2003. The eating-out expenditure has been increasing very fast and
accounted for 45 percent of the total expenditures on food in 2003.

### Table 3: Average Monthly Expenditures on Food Items per Household

+-------------------------------------------+-----------+--------------+
| Food Items                                | US\$      | Percent      |
+-------------------------------------------+-----------+--------------+
| Cereals and bread                         | 37.15     | 8.73         |
+-------------------------------------------+-----------+--------------+
| Meat                                      | 34.15     | 8.02         |
+-------------------------------------------+-----------+--------------+
| Dairy products                            | 16.61     | 3.90         |
+-------------------------------------------+-----------+--------------+
| Fish and shellfish                        | 26.55     | 6.24         |
+-------------------------------------------+-----------+--------------+
| Vegetables & seaweeds                     | 33.48     | 7.87         |
+-------------------------------------------+-----------+--------------+
| Fruits                                    | 23.54     | 5.53         |
+-------------------------------------------+-----------+--------------+
| Oils, fats & seasonings                   | 11.86     | 2.79         |
+-------------------------------------------+-----------+--------------+
| Bakery & confectioneries                  | 18.62     | 4.37         |
+-------------------------------------------+-----------+--------------+
| Tea, soft drinks &                        | 17.78     | 4.18         |
|                                           |           |              |
| Alcoholic beverages                       |           |              |
+-------------------------------------------+-----------+--------------+
| Other foods                               | 11.19     | 2.63         |
+-------------------------------------------+-----------+--------------+
| Eating out                                | 194.69    | 45.74        |
+-------------------------------------------+-----------+--------------+
| Total Expenditure                         | 425.61    | 100%         |
+-------------------------------------------+-----------+--------------+
| Total Expenditure                         | 425.61    | 100%         |
+-------------------------------------------+-----------+--------------+

\*The exchange rate was 1197.8 won against US\$ in 2003

The food service sector garnered approximately \$33.7 billion trillion
in sales in 2002, up from \$28.5 billion in 2001. While industry data is
not available, contacts estimate that the sector continues to grow 4‑5
percent annually. The number of food service businesses increased,
reaching 595,791 in 2002 with total 1.59 million employees. However,
about 75 percent of the businesses in the sector are family‑owned,
mom‑and‑pop restaurants that hire less than 5 employees. In addition,
the average annual earnings of these 75 percent were less than \$45,000
per restaurant in 2002.

### Table 4 - Profiles of Major Western Fast Food Restaurant Chains in 2003

  ----------------------------- --------------- ------------- ------------
  Name of Company               Brand           Sales         Number of
                                                              Outlets

  Lotte                         Lotteria        \$442 Million 890

  Shinmac & Mackim              McDonald's      \$250 Million 343

  Genesis                       BBQ             \$317 Million 1,550

  Doosan                        KFC             \$208 Million 208

  Doosan                        Burger King     \$69 Million  108

  TS Haemaro                    Popeye's        \$108 Million 210
  ----------------------------- --------------- ------------- ------------

Source: Yearbook of Distribution Industry 2004

The growth of the food service sector in recent years has been mainly
driven by the expansion of incorporated businesses operating chain
restaurants of various formats, including family restaurants, fast food
restaurants, bars and institutional restaurants. In addition, the sector
has diversified rapidly with a variety of new‑to‑market cuisines and
recipes.

The outlook for U.S. food exports to this sector is excellent,
especially for beef, pork, poultry, seafood, vegetables and fruits
(frozen, dehydrated and canned), dairies, alcoholic beverages, sauces
and spices, bakery ingredients, prepared foods and organic foods.

For further detailed information on the hotel, restaurant and
institutional industry in Korea, please refer to the HRI Food Service
Sector Market Brief - KS2041 dated September 5, 2002 (Will be updated
soon).

##### 

## C. Domestic Food Processing Sector

The Korean food and beverage manufacturing and processing industry is a
major consumer of imported raw materials, intermediate products,
ingredients and additives. Imports are necessary to support the
processing industry because local production cannot meet the demand.
Except for rice and certain dairy products, of which there is a large
surplus, Korea imports almost all types of agricultural products for
processing. Corn, soybeans, wheat, essential oils, frozen concentrated
orange juice, turkey meat, duck meat, almonds, walnuts, powdered milk,
whey powder and beef tallow are good examples of the raw materials or
ingredients imported into Korea for use in food processing. U.S.
suppliers have a strong opportunity to export raw materials or
ingredients for use in food processing in Korea. The total production of
food, food stuffs and beverages is estimated at \$35.7 billion in Korea
in 2002.

### Table 5. Output of Food Processing by Sector: 2002

  ------------------------------------ ----------------------- -----------
  Food Processing Sector               Gross output            Share (%)
                                       (\$million)             

  Meat processing                      3,895                   10.9%

  Grain processing                     3,691                   10.3%

  Dairy & Ice cream                    3,535                   9.9%

  Feed processing                      3,430                   9.6%

  Alcoholic beverages                  3,030                   8.5%

  Non-alcoholic beverages              2,637                   7.4%

  Fish and marine products             2,449                   6.9%

  Coffee, tea, soup & other foods      2,124                   5.9%

  Bread & Grain preparations           2,028                   5.7%

  Seasonings, spices & Food additives  2,001                   5.6%

  Noodles and similar products         1,426                   4.0%

  Cocoa & sugar confectionery          1,086                   3.0%

  Fats & Oils manufacturing            1,066                   3.0%

  Fruit & Vegetable Processing         1,014                   2.8%

  Sugar manufacturing                  676                     1.9%

  Starch & Sweeteners manufacturing    637                     1.8%

  Total                                35,731                  100%
  ------------------------------------ ----------------------- -----------

Source: Report on Mining and Manufacturing Survey, Dec. 2003

Most Korean food and beverage manufacturers are small-scale companies.
As of the end of 2002, there were 7,550 food, livestock, dairy and
beverage manufacturing plants with five or more employees. Of these,
there are only 16 manufacturers with 500 employees or more. Only 4
percent (304 manufacturers) have 100 or more employees.

For further detailed information on the Korean food processing industry,
please refer to the Food Processing Ingredients Sector Report -- KS4011
dated February 27, 2004.

## D. Trends in Holiday Sales 

There are two major holidays in Korea when sales dramatically increase:
In 2005, the three-day Lunar New Year Holiday will take place on
February 8,9 and 10, and the three-day Chusok (Korean Thanksgiving)
holiday will take place on September 17, 18 and 19. During these
holidays, many Koreans give gifts to their relatives, friends and
business associates. Beef ribs, fruits and other high value food
products are popular during these holidays.

## E. Home Shopping Sales

Internet sales are becoming popular and increasing rapidly. There are 5
TV home shopping companies in Korea, approved by the government, which
sell their products in a variety of ways including catalogs, on-line
sales, and television sales programming. The average annual sales per TV
home shopping company through the Internet were \$69 million in 2003, up
17 percent from \$59 million in 2002, of which food sales accounted for
18 percent (\$12.4 million). The average annual sales per TV home
shopping company through television sales programming were \$60 million
in 2003, of which food sales accounted for 16 percent.

# SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS

+-------+-------+-------+-------+-------+--------------+--------------+
| **Pr  | *     | *     | **5   | **I   | **Key        | **Market     |
| oduct | *2003 | *2003 | Yr.   | mport | Constraints  | At           |
| Categ | M     | Impo  | Avg.  | T     | over Market  | tractiveness |
| ory** | arket | rts** | A     | ariff | D            | for U.S.**   |
|       | S     |       | nnual | R     | evelopment** |              |
|       | ize** | *     | I     | ate** |              |              |
|       |       | *Volu | mport |       |              |              |
|       | **(   | me:** | Gro   |       |              |              |
|       | 1,000 |       | wth** |       |              |              |
|       | MT)** | **(   |       |       |              |              |
|       |       | 1,000 | **Tot |       |              |              |
|       |       | MT)** | al:** |       |              |              |
|       |       |       |       |       |              |              |
|       |       | **Val | **U.  |       |              |              |
|       |       | ue:** | S.:** |       |              |              |
|       |       |       |       |       |              |              |
|       |       | **(\$ |       |       |              |              |
|       |       | M     |       |       |              |              |
|       |       | il)** |       |       |              |              |
+-------+-------+-------+-------+-------+--------------+--------------+
| Beef  | 474   | 326   | 56.6% | Beef: | Currently    | Good market  |
|       |       |       |       | 40%   | beef imports | once ban is  |
|       |       | \$    | 64.8% |       | are banned   | lifted.      |
|       |       | 1,071 |       |       | due to BSE.  |              |
+-------+-------+-------+-------+-------+--------------+--------------+
| Po    | 524   | 94    | 52.0% | \*1   | Not manually | Price        |
| ultry |       |       |       | 8-20% | trimmed.     | -competitive |
| Meat  |       | \$96  | 28.9% |       |              | in case of   |
|       |       |       |       |       | Most chicken | chicken      |
|       |       |       |       |       | parts are    | legs. Market |
|       |       |       |       |       | currently    | should       |
|       |       |       |       |       | banned.      | return once  |
|       |       |       |       |       |              | ban is       |
|       |       |       |       |       |              | lifted.      |
+-------+-------+-------+-------+-------+--------------+--------------+
| C     | 880   | 151   | 51.7% | Or    | High tariff  | Tariff for   |
| itrus |       |       |       | ange: | rates and    | oranges      |
|       |       | \$118 | 50.2% | 50%   | quality      | declined in  |
|       |       |       |       |       | variable.    | 2004 to 50%. |
|       |       |       |       | G     |              | The U.S. is  |
|       |       |       |       | rapef | Septoria     | the          |
|       |       |       |       | ruit: | citri issue  | predominant  |
|       |       |       |       | 30%   | with two     | supplier.    |
|       |       |       |       |       | counties in  | Good market  |
|       |       |       |       | L     | CA.          | once         |
|       |       |       |       | emon: |              | Septoria     |
|       |       |       |       | 30%   |              | citri issue  |
|       |       |       |       |       |              | is resolved. |
+-------+-------+-------+-------+-------+--------------+--------------+
| Hay & | NA    | 546   | 1     | Alf   | Tariff       | U.S. product |
| F     |       |       | 55.1% | alfa: | quotas apply | is           |
| odder |       | \$101 |       | 1%    | except for   | considered   |
|       |       |       | 1     |       | alfalfa      | high         |
|       |       |       | 72.1% | Ot    |              | quality.     |
|       |       |       |       | hers: |              |              |
|       |       |       |       |       |              |              |
|       |       |       |       | 2-1   |              |              |
|       |       |       |       | 00.5% |              |              |
+-------+-------+-------+-------+-------+--------------+--------------+
| Choc  | \$293 | 30    | 23.1% | 8%    | High quality | Competitive  |
| olate | mil   |       |       |       | products are | in prices    |
|       |       | \$99  | 23.9% |       | not well     | and design   |
|       |       |       |       |       | known in     | for medium   |
|       |       |       |       |       | Korea.       | quality      |
|       |       |       |       |       |              | products.    |
+-------+-------+-------+-------+-------+--------------+--------------+
| Wine  | NA    | 1     | 1     | 15%   | Fewer        | Consumption  |
|       |       | 3,123 | 21.1% |       | varieties    | is growing   |
|       |       | KL    |       |       | than French; | rapidly      |
|       |       |       | 1     |       | higher       |              |
|       |       | \$46  | 38.6% |       | prices than  |              |
|       |       |       |       |       | Chilean and  |              |
|       |       |       |       |       | Australian   |              |
|       |       |       |       |       | wines        |              |
+-------+-------+-------+-------+-------+--------------+--------------+
| Fish  | 3,607 | 1,121 | 49.7% | \*1   | US prices    | Good quality |
| and   |       |       |       | 0-20% | are higher   |              |
| Se    |       | \$    | 16.7% |       | than those   |              |
| afood |       | 1,737 |       |       | of           |              |
|       |       |       |       |       | competitors. |              |
+-------+-------+-------+-------+-------+--------------+--------------+
| Pet   | 405   | 39    | 99.6% | 5%    | High prices  | Demand is    |
| Food  |       |       |       |       |              | increasing.  |
|       |       | \$51  | 56.6% |       |              |              |
+-------+-------+-------+-------+-------+--------------+--------------+
| Fresh |       | 18    | 41.3% | 30    | Competition  | U.S.         |
| P     |       |       |       | -304% | with local   | potatoes are |
| otato |       | \$7   | NA    |       | and          | competitive  |
|       |       |       |       |       | Australian   | in prices    |
|       |       |       |       |       | potatoes     | and quality  |
|       |       |       |       |       |              | with         |
|       |       |       |       |       |              | competitors. |
|       |       |       |       |       |              | U.S. fresh   |
|       |       |       |       |       |              | potatoes     |
|       |       |       |       |       |              | started to   |
|       |       |       |       |       |              | come in      |
|       |       |       |       |       |              | 2004.        |
+-------+-------+-------+-------+-------+--------------+--------------+
| Nuts  | NA    | 10    | 23.7% | Al    | Tariffs are  | U.S. is a    |
|       |       |       |       | mond: | high for     | predominant  |
|       |       | \$35  | 23.9% | 8%    | pistachios & | supplier.    |
|       |       |       |       |       | walnuts and  |              |
|       |       |       |       | Pista | in-shelled   |              |
|       |       |       |       | chio: | walnuts are  |              |
|       |       |       |       | 30%   | prohibited.  |              |
|       |       |       |       |       |              |              |
|       |       |       |       | Wa    |              |              |
|       |       |       |       | lnut: |              |              |
|       |       |       |       | 30%   |              |              |
+-------+-------+-------+-------+-------+--------------+--------------+

\*The tariff rates are different depending upon the product, and for
some fish there are adjustment tariffs, which are a lot higher than
listed above. For specific tariff rates, please contact ATO Seoul.

# SECTION V. KEY CONTACTS AND FURTHER INFORMATION

**KEY FAS/USDA CONTACTS AND FURTHER INFORMATION**

**For further information about the Korean agricultural market, please
contact:**

**U.S. Agricultural Trade Office**

Korean Address: Room 303, Leema Building

146-1, Susong-dong, Chongro-ku, Seoul, Korea

U.S. Mailing Address: US Embassy Seoul, Unit 15550-ATO, APO, AP
96205-5550

Telephone: 82-2 397-4188 Fax: 82-2 720-7921

E-mail: <atoseoul@usda.gov>

Website: [www.atoseoul.com](http://www.atoseoul.com/)

**Agricultural Affairs Office**

Korean Address: U.S. Embassy, 82, Sejong-ro, Chongro-ku, Seoul, Korea

U.S. Mailing Address: US Embassy Seoul, Unit 15550-AgAff, APO, AP
96205-5550

Telephone: 82-2 397-4297 Fax: 82-2 738-7147

E-mail: <agseoul@usda.gov>

**For more information on how you can register for USDA/FAS' Supplier
List:**

The United States Department of Agriculture's Foreign Agricultural
Service (USDA/FAS) offers information and services that can be
beneficial to both new and experienced exporters. For example, the U.S.
Suppliers Service is a searchable database of over 5,000 U.S. exporters
and their products, which is used by USDA/FAS to help facilitate
connecting potential buyers with U.S. suppliers. This database is used
by more than 85 USDA FAS Overseas offices to help export agents, trading
companies, importers and foreign market buyers locate U.S. suppliers. It
is also used to recruit U.S. exporters to participate in market
development activities sponsored by USDA and federal export programs.

You can register online for this service at

**http://www.fas.usda.gov/agexport/exporter.html**

AgConnections Team

AgExport Services Division, Foreign Agricultural Service, Washington,
D.C.

Telephone: 202-690-4172 Fax: 202-205-2963

E-mail: <joyce.estep@usda.gov>

Website: www.fas.usda.gov/agx/agx.html

**For further information about sanitary and phytosanitary requirements,
please contact:**

**U.S. Animal Plant and Health Inspection Service (APHIS)**

Korean Address: Room 303, Leema Building

146-1, Susong-dong, Chongro-ku, Seoul, Korea

U.S. Mailing Address: US Embassy Seoul, Unit 15550-APHIS, APO, AP
96205-5550

Telephone: 82-2 725-5495 Fax: 82-2 725-5496

E-mail: aphis@kornet.net

Website: www.aphis.usda.gov

**For information about activities by Strategic Trade Regional Groups,
please contact:**

**Mid-America International Agri-Trade Council (MIATCO)**

400 West Erie Street, Suite 100, Chicago, Illinois 60610

Telephone: 312-944-3030 Fax: 312 944-1144

E-mail: eriggs@miatoco.org

Website: [www.miatco.org](http://www.miatco.org/)

**Western United States Agricultural Trade Association (WUSATA)**

2500 Main Street, Suite 110, Vancouver, WA 98660-2697, USA

Telephone: 360-693-3373 Fax: 360-693-3464

E-mail: <bruce@wusata.org>

Website: [www.wusata.org](http://www.wusata.org/)

**Food Export USA - Northeast Region of the United States**

150 S. Independence Mall West, 1036 Public Ledger Building

Philadelphia, PA 19106, USA

Telephone: 215-829-9111 Fax: 215-829-9777

E-mail: <jcanono@foodexportusa.org>

Website: [www.foodexportusa.org](http://www.foodexportusa.org/)

**Southern United States Agricultural Trade Association (SUSTA)**

2 Canal Street Suite 2515, New Orleans, LA 70130, USA

Telephone: 504-568-5986 Fax: 504-568-6010

E-mail: <jim@susta.org>

Website: [www.susta.org](http://www.susta.org/)

**For information on the commercial and industrial products in Korea,
please contact:**

**U.S. Commercial Service**

Korean Address: U.S. Embassy, 82, Sejong-ro, Chongro-ku, Seoul, Korea

U.S. Mailing Address: US Embassy Seoul, Unit 15550-USCS, APO, AP
96205-5550

Telephone: 82-2 397-4535 Fax: 82-2 739-1628

E-mail: <Seoul.office.box@mail.doc.gov> Homepage:
[www.buyusa.gov/korea](http://www.buyusa.gov/korea)

#  

# APPENDIX. STATISTICS

## Table A. KEY TRADE & DEMOGRAPHIC INFORMATION

  ---------------------------------------------------------- -------------
  Agricultural Imports From All Countries (\$Mil) / U.S.     13,421/26.3
  Market Share (%) 1/                                        

  Consumer Food Imports From All Countries (\$Mil) / U.S.    3,779/41.8
  Market Share (%) 1/                                        

  Edible Fishery Imports From All Countries (\$Mil) / U.S.   1,900/7.6
  Market Share (%) 1/                                        

  Total Population (Millions) / Annual Growth Rate (%)       48/ 0.6

  Urban Population (Millions) / Annual Growth Rate (%) 2/    36.8/1

  Number of Major Metropolitan Areas 3/                      7

  Size of the Middle Class (Millions) / Growth Rate (%) 4/   N/A

  Per Capita Gross Domestic Product (U.S. Dollars)           \$12,628

  Unemployment Rate (%)                                      3.4

  Per Capita Food Expenditures (U.S. Dollars) 5/             \$426

  Percent of Female Population Employed 6/                   48.9

  Exchange Rate (US\$ = Korean won) 7/                       1,197.8
  ---------------------------------------------------------- -------------

All data are for 2003 unless otherwise noted.

Foot Notes

1/ Korea Trade Information Service (KOTIS), compiled by ATO Seoul

2/ Urban population in 2000 and average annual growth rate between 1995
& 2000

3/ Population in excess of million people in 2000

4/ Official data is not available

5/ Average monthly household expenditures in cities on food and beverage

6/ % of women employed against total number of women (15 years old or
above)

7/ Year-end exchange rate of won against the U.S. dollar in 2003

##  

## Table B. KOREAN CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS

<table>
<colgroup>
<col style="width: 37%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td rowspan="2"><p><strong>Imports</strong></p>
<p><strong>(In Millions of Dollars)</strong></p></td>
<td colspan="3"><strong>Imports from the World</strong></td>
<td colspan="3"><strong>Imports from the U.S.</strong></td>
<td colspan="3"><strong>U.S. Market Share</strong></td>
</tr>
<tr class="even">
<td><strong>2001</strong></td>
<td><strong>2002</strong></td>
<td><strong>2003</strong></td>
<td><strong>2001</strong></td>
<td><strong>2002</strong></td>
<td><strong>2003</strong></td>
<td><strong>2001</strong></td>
<td><strong>2002</strong></td>
<td><strong>2003</strong></td>
</tr>
<tr class="odd">
<td><strong>CONSUMER-ORIENTED TOTAL</strong></td>
<td><strong>2608</strong></td>
<td><strong>3074</strong></td>
<td><strong>NA</strong></td>
<td><strong>977</strong></td>
<td><strong>1313</strong></td>
<td><strong>NA</strong></td>
<td><strong>37%</strong></td>
<td><strong>43%</strong></td>
<td><p id="section-7" class="heading"></p>
<p id="na" class="heading">NA</p></td>
</tr>
<tr class="even">
<td>Snack Foods (Excl. Nuts)</td>
<td>117</td>
<td>140</td>
<td>NA</td>
<td>27</td>
<td>35</td>
<td>NA</td>
<td>23%</td>
<td>25%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Breakfast Cereals &amp; Pancake</td>
<td>5</td>
<td>6</td>
<td>NA</td>
<td>1</td>
<td>1</td>
<td>NA</td>
<td>20%</td>
<td>17%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Red Meats, Fresh/Chilled/Frozen</td>
<td>734</td>
<td>1160</td>
<td>NA</td>
<td>375</td>
<td>673</td>
<td>NA</td>
<td>51%</td>
<td>58%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Red Meats, Prepared/Preserved</td>
<td>42</td>
<td>43</td>
<td>NA</td>
<td>18</td>
<td>19</td>
<td>NA</td>
<td>43%</td>
<td>44%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Poultry Meat</td>
<td>100</td>
<td>102</td>
<td>NA</td>
<td>48</td>
<td>56</td>
<td>NA</td>
<td>48%</td>
<td>55%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Dairy Products (Excl. Cheese)</td>
<td>109</td>
<td>99</td>
<td>NA</td>
<td>19</td>
<td>16</td>
<td>NA</td>
<td>17%</td>
<td>16%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Cheese</td>
<td>88</td>
<td>85</td>
<td>NA</td>
<td>14</td>
<td>15</td>
<td>NA</td>
<td>16%</td>
<td>18%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Eggs &amp; Products</td>
<td>18</td>
<td>18</td>
<td>NA</td>
<td>8</td>
<td>7</td>
<td>NA</td>
<td>44%</td>
<td>39%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Fresh Fruit</td>
<td>188</td>
<td>139</td>
<td>NA</td>
<td>84</td>
<td>96</td>
<td>NA</td>
<td>45%</td>
<td>69%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Fresh Vegetables</td>
<td>35</td>
<td>39</td>
<td>NA</td>
<td>1</td>
<td>1</td>
<td>NA</td>
<td>3%</td>
<td>3%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Processed Fruit &amp; Vegetables</td>
<td>309</td>
<td>309</td>
<td>NA</td>
<td>99</td>
<td>98</td>
<td>NA</td>
<td>32%</td>
<td>32%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Fruit &amp; Vegetable Juices</td>
<td>87</td>
<td>102</td>
<td>NA</td>
<td>28</td>
<td>38</td>
<td>NA</td>
<td>32%</td>
<td>37%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Tree Nuts</td>
<td>28</td>
<td>28</td>
<td>NA</td>
<td>23</td>
<td>24</td>
<td>NA</td>
<td>82%</td>
<td>86%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Wine &amp; Beer</td>
<td>35</td>
<td>42</td>
<td>NA</td>
<td>8</td>
<td>8</td>
<td>NA</td>
<td>23%</td>
<td>19%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Nursery Products &amp; Cut Flowers</td>
<td>30</td>
<td>34</td>
<td>NA</td>
<td>1</td>
<td>1</td>
<td>NA</td>
<td>3%</td>
<td>3%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Pet Foods (Dog &amp; Cat Food)</td>
<td>20</td>
<td>36</td>
<td>NA</td>
<td>12</td>
<td>17</td>
<td>NA</td>
<td>60%</td>
<td>47%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Other Consumer Products</td>
<td>663</td>
<td>692</td>
<td>NA</td>
<td>211</td>
<td>208</td>
<td>NA</td>
<td>32%</td>
<td>30%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td><strong>SEAFOOD PRODUCT TOTAL</strong></td>
<td><strong>1585</strong></td>
<td><strong>1806</strong></td>
<td><strong>NA</strong></td>
<td><strong>149</strong></td>
<td><strong>165</strong></td>
<td><strong>NA</strong></td>
<td><strong>9%</strong></td>
<td><strong>9%</strong></td>
<td><strong>NA</strong></td>
</tr>
<tr class="even">
<td>Salmon</td>
<td>20</td>
<td>18</td>
<td>NA</td>
<td>2</td>
<td>1</td>
<td>NA</td>
<td>10%</td>
<td>6%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Surimi</td>
<td>112</td>
<td>115</td>
<td>NA</td>
<td>63</td>
<td>57</td>
<td>NA</td>
<td>56%</td>
<td>50%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Crustaceans</td>
<td>253</td>
<td>340</td>
<td>NA</td>
<td>9</td>
<td>13</td>
<td>NA</td>
<td>4%</td>
<td>4%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Ground fish &amp; Flatfish</td>
<td>593</td>
<td>667</td>
<td>NA</td>
<td>57</td>
<td>66</td>
<td>NA</td>
<td>10%</td>
<td>10%</td>
<td>NA</td>
</tr>
<tr class="even">
<td>Mollusks</td>
<td>156</td>
<td>177</td>
<td>NA</td>
<td>1</td>
<td>1</td>
<td>NA</td>
<td>1%</td>
<td>1%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>Other Fishery Products</td>
<td>451</td>
<td>489</td>
<td>NA</td>
<td>17</td>
<td>27</td>
<td>NA</td>
<td>4%</td>
<td>6%</td>
<td>NA</td>
</tr>
<tr class="even">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>　</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>CONSUMER &amp; FISHERY TOTAL</strong></td>
<td><strong>4193</strong></td>
<td><strong>4880</strong></td>
<td><strong>NA</strong></td>
<td><strong>1126</strong></td>
<td><strong>1478</strong></td>
<td><strong>NA</strong></td>
<td><strong>27%</strong></td>
<td><strong>30%</strong></td>
<td><strong>NA</strong></td>
</tr>
</tbody>
</table>

Source: FAS\' Global Agricultural Trade System using data from the
United Nations

Statistical Office

## Table C. TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE FISHERY PRODUCTS

####### CONSUMER-ORIENTED AGRICULTURAL TOTAL

  ---------------------- ---------------- ---------------- ----------------
  **Reporting Country:\  **Import**                        
  Korea, Republic of\                                      
  Top 15 Ranking**                                         

                         **2001**         **2002**         **2003**

                         **1000\$**       **1000\$**       **1000\$**

  United States          976,328          1,310,703        NA

  China (Peoples         309,578          339,454          NA
  Republic of)                                             

  Australia              229,599          315,646          NA

  New Zealand            112,934          131,712          NA

  Canada                 73,591           94,795           NA

  Japan                  84,466           94,675           NA

  Thailand               90,060           83,512           NA

  Belgium                58,413           82,478           NA

  Netherlands            72,616           70,673           NA

  Denmark                57,887           62,741           NA

  France                 71,075           59,884           NA

  Brazil                 37,863           49,615           NA

  Philippines            103,257          38,236           NA

  Germany                34,750           37,728           NA

  Hungary                23,925           32,918           NA

  Other                  270,985          269,289          NA

  World                  2,607,343        3,074,090        NA
  ---------------------- ---------------- ---------------- ----------------

**EDIBLE FISHERY PRODUCTS**

+--------------------------------+-----------+-----------+-----------+
| **Reporting Country:\          | #####     |           |           |
| Korea, Republic of\            | ## Import |           |           |
| Top 15 Ranking**               |           |           |           |
+--------------------------------+-----------+-----------+-----------+
|                                | **2001**  | **2002**  | **2003**  |
+--------------------------------+-----------+-----------+-----------+
|                                | *         | *         | *         |
|                                | *1000\$** | *1000\$** | *1000\$** |
+--------------------------------+-----------+-----------+-----------+
| China (Peoples Republic of)    | 628,631   | 709,721   | NA        |
+--------------------------------+-----------+-----------+-----------+
| Russian Federation             | 152,419   | 213,932   | NA        |
+--------------------------------+-----------+-----------+-----------+
| United States                  | 148,513   | 164,663   | NA        |
+--------------------------------+-----------+-----------+-----------+
| Japan                          | 132,630   | 141,173   | NA        |
+--------------------------------+-----------+-----------+-----------+
| Vietnam                        | 101,443   | 116,291   | NA        |
+--------------------------------+-----------+-----------+-----------+
| Thailand                       | 82,993    | 83,668    | NA        |
+--------------------------------+-----------+-----------+-----------+
| Taiwan (Estimated)             | 45,600    | 54,702    | NA        |
+--------------------------------+-----------+-----------+-----------+
| Canada                         | 24,511    | 42,810    | NA        |
+--------------------------------+-----------+-----------+-----------+
| Norway                         | 24,957    | 25,301    | NA        |
+--------------------------------+-----------+-----------+-----------+
| United Kingdom                 | 16,298    | 21,871    | NA        |
+--------------------------------+-----------+-----------+-----------+
| Indonesia                      | 24,133    | 21,533    | NA        |
+--------------------------------+-----------+-----------+-----------+
| Mexico                         | 16,513    | 18,767    | NA        |
+--------------------------------+-----------+-----------+-----------+
| India                          | 16,226    | 17,741    | NA        |
+--------------------------------+-----------+-----------+-----------+
| Philippines                    | 14,748    | 14,936    | NA        |
+--------------------------------+-----------+-----------+-----------+
| Ireland                        | 11,455    | 13,884    | NA        |
+--------------------------------+-----------+-----------+-----------+
| Other                          | 144,164   | 145,559   | NA        |
+--------------------------------+-----------+-----------+-----------+
| World                          | 1,585,246 | 1,806,561 | NA        |
+--------------------------------+-----------+-----------+-----------+

NA - Data not available (not reported) 

Data: Harmonized Tariff Schedule (HS 6 Digit)

Source: FAS\' Global Agricultural Trade System using data from

the United Nations Statistical Office