Required Report - public distribution

**Date:** 9/6/2005

**GAIN Report Number:** KS5045

KS5045

**Korea, Republic of**

**Livestock and Products**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Stan Phillips

U.S. Embassy

**Prepared by:**

Yong Keun Ban

**Report Highlights:**

The continuing ban on U.S. and Canadian beef is driving prices for pork
and Hanwoo beef higher. Consumers are searching for alternatives while
Korean cattle and swine producers are enjoying firm prices. Hanwoo beef
producers reacted by increasing cattle inventories. Strong pork prices
combined with constraints to expansion of swine inventories are expected
to lead to continued robust imports of pork in 2006. Government policy
toward beef and pork production is increasingly emphasizing quality,
safety and providing information to consumers.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Seoul \[KS1\]

\[KS\]

Table of Contents

[Section I: Situation and Outlook 3](#section-i-situation-and-outlook)

[Section II: Cattle, Beef, and Veal 5](#section-ii-cattle-beef-and-veal)

[Section III: Swine and Pork 10](#section-iii-swine-and-pork)

[Section IV: Statistical Tables: Cattle and Beef
14](#section-iv-statistical-tables-cattle-and-beef)

[PS&D Table for Cattle 14](#psd-table-for-cattle)

[PS&D Table for Beef 15](#psd-table-for-beef)

[Cattle and Beef Tables 16](#cattle-and-beef-tables)

[Section V: Statistical Tables: Swine and Pork
23](#section-v-statistical-tables-swine-and-pork)

[PS&D Table for Swine 23](#psd-table-for-swine)

[PS& Table for Pork 24](#ps-table-for-pork)

[Swine and Pork Tables 25](#swine-and-pork-tables)

# 

# Section I: Situation and Outlook

Korea is currently maintaining bans on both U.S. and Canadian beef. In
June 2005, Korean officials traveled to the United States to conduct
technical talks with U.S. officials and review additional BSE protection
measures put into place in the United States since May 2004. However,
news that a second case of BSE had been detected in Texas caused Korean
officials to defer release of their findings from the trip pending
review of the final epidemiological report on the Texas BSE case. The
epidemiological investigation report was provided to the Korean
government at the end of August. The Korean government will review the
report and convene a meeting of the Animal Health Committee to evaluate
all the information obtained from three rounds of Korea-U.S. technical
talks, site visits made by Korean officials in the United States and
other sources of information such as the epidemiological report. The
Animal Health Committee will advise the Minister of Agriculture of its
findings and recommendations. The Minister will review the report from
the Animal Health Committee and decide whether to allow for high-level
policy negotiations on setting the conditions for import resumption of
U.S. beef. Post will adjust the estimates in this report if Korea
changes its policy and allows beef to enter from the United States.

In part as a result of heightened concerns about food safety, the Korean
government introduced a pilot traceability system in some discount
stores in 2005. The system is designed to enhance consumer confidence in
locally produced Hanwoo beef and is expected to increase beef
consumption in 2005 and 2006. The regional elections in April 2006 will
also help boost beef consumption. Frozen U.S. beef that cleared
quarantine inspection prior to the import ban in December 2003 was
reaching the end of its shelf life and has now been used up.

Lucrative Hanwoo fed cattle prices and, in turn, increased demand for
Hanwoo feeder calves have encouraged farmers to expand their herds. Cow
inventories (over 2 years old) increased from 617,000 head in December
2004 to 647,000 head in June 2005. Another round of herd contraction
could occur if Hanwoo beef prices subside after U.S. beef returns to the
market. However, inventory adjustments would likely be relatively small
compared to the contraction that occurred in late 2000 and early 2001
when the beef market was liberalized.

Government policies have focused less on stimulating Hanwoo production
and more on emphasizing enhancements to the food safety system for
domestic beef. Among other aspects, the new focus includes development
of a traceability program and environment friendly livestock production
policies.

Despite significant increases in the Hanwoo inventory and a sluggish
economy, Hanwoo beef retail prices remain twice as high as imported
Australian beef. Hanwoo products target the high-income consumer market.
However, the majority of Korean beef consumers who focused formerly on
reasonably priced but high quality imported beef have now shifted to
other substitute products, such as pork and fish. Because most Koreans
prefer highly marbled beef over lean meat, many consumers have opted to
switch to pork rather than Australian beef which is leaner than Hanwoo
or U.S. beef. This shift has caused pork prices to rise.

Korean government's efforts to resume fresh/chilled/frozen pork exports
to Japan has been hampered by Japan's prohibition on imports for one
year after the last vaccination against classical swine fever. Korea
continued to vaccinate its swine in 2005. Agreement was reached with
Japan in August 2005 to export heat-treated pork. However, the domestic
pork industry is unlikely to view the agreement as attractive at
present, given the lucrative domestic pork prices. Pork production
continues to drop in 2005 as more environmental restrictions eliminate
farms that cannot afford required pollution control equipment. However,
strong pork demand as people continue to substitute pork for beef will
likely forestall a large shakeout among hog producers until consumers
shift back to imported beef.

Korea has a positive list of approved veterinary drugs (antibiotics,
growth hormones, feed additives, etc.). Veterinary drugs that are not on
Korea's positive list should not be detected in any meat product. Some
of the approved veterinary drugs are allowed to be administered through
compound feed. However, the total number of veterinary drugs approved
for use in compound feed was reduced from 53 to 25 items on December 10,
2004. This measure went into effect on May 1, 2005.

The maximum residue level of antibiotics and pesticides permitted in
meat products can be found by visiting the Korea Food & Drug website at
[www.kfda.go.kr](http://www.kfda.go.kr/).

# 

# Section II: Cattle, Beef, and Veal

Production

The Korean Hanwoo cattle inventory continues to increase in 2005. This
trend is projected to continue into 2006. The ongoing import ban on U.S.
and Canadian beef and ensuing record level farm gate prices for Hanwoo
cattle and calves in 2005 have caused farmers to expand their herds.
Also, the introduction of programs to enhance consumer confidence in
Hanwoo beef and provide assurance of its authenticity appear to be
buttressing demand for Hanwoo beef against future resumption of imports
from the United States and Canada.. The import ban on U.S. beef has been
in place since December 2003. Accordingly, most of the U.S. beef that
had entered Korea prior to the ban has now been consumed since it was
approaching the end of its shelf life which is less than 2 years under
Korea regulations.

Reflecting Hanwoo producers' optimism, beef cow inventories have
increased from 617,000 head at the beginning of 2005 to 647,000 heads as
of July 1, 2005. Some of the increase in cow numbers is due to increased
feeder calve prices which jumped 361,000 won per head (about US\$350)
during the first 6 months of 2005. Fed cattle prices increased only
106,000 won (about US\$103) per head during the same period perhaps
reflecting speculation that prices will peak in 2006. The number of farm
households involved in Hanwoo beef production increased from 189,000 to
192,000 during the first half of 2005.

In June 2005, news of the second case of BSE in the United States
created optimism among local producers that imports of U.S. beef would
not resume in 2005. The United States provided the epidemiological
investigation results on the second BSE case at the end of August. The
Korean government will review this report and add it to the body of
information on measures to safeguard U.S. beef that will be provided to
the Animal Health Committee (an advisory group comprised of public and
private sector experts). The Committee will review the information and
provide the Minister of Agriculture with its advice and recommendations.
The Minister will review the Committee's input and decide whether to
begin negotiations for trade resumption. If trade does resume after such
negotiations, there is a possibility of another round of herd
contraction if Hanwoo beef prices subside after U.S. beef returns to the
market. However, inventory adjustments are not expected to be as
significant as those which occurred at the end of 2000 and early 2001
when the beef market was liberalized.

If U.S. beef trade resumes in 2006, Hanwoo calf production will contract
as producers readjust to the presence of high quality grain-fed U.S.
beef on the market. In turn, total slaughter numbers will increase.
However, because of the high calf production in 2005, the overall ending
inventory in 2006 is expected to remain stable.

The Korean government introduced a pilot beef traceability system in
some of the discount stores to increase consumer confidence in the
authenticity of Hanwoo beef. Based on preliminary indications, the
traceability system is expected to increase beef consumption in 2005. In
its first year of implementation in 2005, a total of 53,000 head are
participating in the program. The Korean government's goal is to apply
the system to all Hanwoo cattle by 2009.

In general, the basic policy for the beef industry is aimed at providing
higher-quality, safe livestock products that will meet the consumer
demand in contrast to past emphasis on production-related support.

On May 7, 2005, a shipment of feeder calves (851 head) was imported from
Australia for the first time in 14 months. Local producers did not
protest as they did when previous cattle imports occurred. However,
producer group representatives vowed to track the animals and make sure
that they are not marketed falsely as domestic Hanwoo beef after
slaughter.

MAF has implemented the following initiatives to provide higher-quality,
safe livestock products that will meet the demand of consumers in 2005:

[Cash Incentives for Quality Improvement:]{.underline} Castrated Hanwoo
steers that receive "Grade A+" after slaughter qualify for a cash
premium of 200,000 won/head and those that receive "Grade A" receive
100,000 won/head. The total number of animals expected to receive this
cash incentive in 2005 is targeted at 61,000 head, compared to 17,000
head in 2004. The government has budgeted 8.48 billion won (US\$8.2
million) for 2005. Only cattle that were born in Korea are eligible for
the incentive payment. Audits of the program indicate some payments
under the program may have gone to ineligible recipients in 2004 and
2005. As a result, it is possible that funding for the program may be
reduced in 2006.

[Mandatory Livestock Registration]{.underline}: The Ministry of
Agriculture & Forestry is implementing its plan to require livestock
farmers to register with the municipal/provincial government. To comply
with registration requirements, farmers must maintain a minimum farm
space per animal and undergo education on environmentally friendly
agriculture once a year. Hanwoo farms larger than 300 square meters and
swine farms larger than 50 square meters are required to register by the
end of 2005. When the registration is completed, the government will
have a better database for controlling livestock diseases, targeting
support and enforcing prerequisites for obtaining support. The
government has budgeted 18.79 billion won (US\$18.2 million) in 2005 for
this project.

[Improvement of BSE Monitoring System:]{.underline} Korea randomly tests
1000 head of cattle per year under a BSE monitoring program. Cattle
tested under the monitoring program are allowed to move into the market
before the test results become available. In addition to the animals
tested for BSE on a monitoring basis, all cattle exhibiting suspicious
signs are required to undergo testing for BSE. The animals subject to
the mandatory test are not allowed to enter the market until the test
result becomes available.

[Beef Traceability System:]{.underline} Korea plans to introduce a beef
traceability system on a trial basis from October 2004 to 2008. When
implemented, it will provide information for beef by each stage of
production, from the cattle farm, slaughter plant, processing facility
to marketing channels. The tracebility system will target 9 brands in
2005, which will cover around 45,000 head of Hanwoo cattle. Total budget
for this project is set at 367 million won (\$356,000) in 2005 to
provide support for procurement of ear tags, setting up the computer
system, purchase of code scanners, printers, etc. The government will
also test a traceability system for imported beef in 2005 by selecting 2
importing companies, 1 processing plant, 2 retail stores and 2
quarantine facilities. Radio Frequency ID (RFID) Chips will be used to
conduct the trial traceability program for imported beef. Pending the
results of the trial, the government plans to implement this program for
all Hanwoo cattle in 2009.

[Hanwoo Cattle Check-Off Program:]{.underline} Hanwoo producers have
agreed to implement a mandatory check-off program to secure funding for
promotion of Hanwoo beef. As of May 1, 2005, slaughter plants began
collecting 20,000 won/head (US\$19.4) when Hanwoo cattle are delivered
at the slaughter plant. The check-off funds, less 3 percent provided as
an administrative fee for slaughter plants, will be deposited in a
central fund. The government plans to provide matching funds up to the
amount contributed by the producers. The check-off funds and the
government's matching funds are expected to amount to a total of 5.2
billion won (US\$5 million) in 2005, among which half will be used for
promoting Hanwoo beef in 2005 and the remainder will be held in reserve
for future activities.

[Facilitation of Livestock Packing Centers (LPC):]{.underline} On August
24, 2005, the Ministry of Agriculture & Forestry announced a plan to
facilitate improvement of the LPCs. The program is intended to enhance
operations and competitiveness of the seven LPCs that are currently in
operation by providing incentives to produce more sanitary meat. After
evaluating the HACCP operation level and management level, the
government will provide a zero-interest loan to the top one-third of the
LPCs, a low interest loan of 3 percent to the middle-third, and no
support to the LPCs that fall into the bottom third. The Ministry will
also extend the loan period for the existing government loans for 2
years. The government hopes to expand LPC marketing opportunities by
allowing the LPCs to conduct wholesale business and also promote the
marketing of boxed meat. Currently, most of the meat that is slaughtered
in 108 slaughter plants is marketed in the form of whole and half
carcasses. The government will also stop giving business permits for new
slaughter plants.

Beef Imports

The import statistics used in this report reflect shipments that have
officially cleared customs. Therefore, the import numbers in the PS&D
and trade matrix from United States and Canada are actually products
that had cleared quarantine inspection prior to the BSE outbreak
(December 23, 2003 for the United States and May 2003 for Canada) but
cleared customs in 2004 and 2005.

Initial concerns among Korean consumers have faded as more information
has become available. Reports of market opening in other countries,
continued strong beef consumption in the United States and activities to
educate consumer representatives and the media in Korea have all
contributed to easing consumer concerns. As a result, consumption of
beef has gradually increased. Local producers captured some of the
market but the bulk of the increase in consumption was filled by imports
from Australia and New Zealand. Also, U.S. frozen beef that had cleared
quarantine inspection prior to December 2003 continued to be supplied
through the first half of 2005. Beef imports are expected to increase
during the second half of 2005 as imported U.S. beef in the warehouses
has been used up and demand continues to improve. Koreans' preference
for highly marbled grain-fed beef is a constraint on Australia and New
Zealand's promotional efforts to capture the market supplied by U.S. and
Canadian beef in the past. Australia has reportedly increased its supply
of grain-fed beef. However, increased exportable supplies of grain-fed
Australian beef still fall far from meeting the demand that existed
prior to the ban for highly marbled U.S. beef.

Korean quarantine officials are currently conducting a survey to see if
importers would prefer to grant priority to quarantine inspection of
chilled meat over frozen meat. Currently, all meat that must undergo
laboratory inspection is inspection on a first-come-first-serve basis
whether it is chilled or frozen. As a result, importers of chilled meat
can face delays in inspection which create difficulty in selling chilled
meat within the shelf life. If the government's plan to prioritize the
inspection of chilled meat is realized, it would allow importers to have
more time to market chilled meat products and likely expand imports of
chilled meat.

The government also is trying to pass a law that would mandate country
of origin labeling for beef on restaurant menus. Such efforts are
designed to address complaints from Hanwoo beef producers that roughly
30 percent of restaurants market dishes made from imported beef as
Hanwoo beef dishes. A DNA test conducted by Seoul YWCA showed that 12
out of 41 restaurants were found to be selling imported beef or dairy
cow beef as Hanwoo beef. The government is providing a reward of 50,000
-- 1,000,000 won (US\$48 - \$965) to people that report false labeling
of country of origin of beef.

The Korean government has also agreed to conduct an import risk
assessment of Argentine beef. Currently, beef imports from Argentina are
prohibited due to concerns over foot-and-mouth disease.

The U.S. Meat Export Federation (USMEF) continues to conduct promotional
activities to educate consumers and restore consumer confidence in
consumption of beef. Such activities have served a vital role in
providing factual information about BSE to the public to counter
inaccurate information reported in the media. USMEF escorted a team
composed of consumer groups and scholars to the United States in May
2005 to show them the measures in place to secure the safety of U.S.
beef against BSE. USMEF plans to continue to promote the safety of U.S.
beef among consumers during the second half of 2005.

Australia is aggressively promoting its beef in the Korean market during
the absence of U.S. beef, under the slogan of "Clean and Safe"
Australian beef. To commemorate its third year of the promotional
campaign, it conducted a special "333 Festival" during the period April
28 -- May 15, 2005, where it offered free round-trip tickets to
Australia for 100 people as well as free steak dinners for 999 couples,
etc. The key message that Australia emphasized during this campaign was
"Safe, delicious and nutritious."

Canada, whose beef imports are also currently banned, continues to
promote the safety of its beef in Korea, under the slogan of "Beef at
its Best from Canada." The key message that Canada is also focusing on
is the fact that Canadian beef is safe by promoting traceability since
2001, separate control of cattle older than 30 months, SRM removal, feed
ban, and that Canadian beef originates largely from cattle that were
born after the feed ban went into effect.

[Consumption/Utilization/Stocks]{.underline}

As can be seen from the promotional efforts by beef exporting nations as
well as some of the Korean government policies, restoring consumer
confidence in the safety of beef is the key to increasing beef
consumption. Increased understanding of measures to protect consumers
among consumer representatives and media appears to have resulted in a
reduction in reporting on BSE in the local media. Accordingly, consumer
confidence is gradually improving and restoring normal consumption
patterns. Also, the major election for electing municipal/provincial
government officers and representatives scheduled for April 2006 may
boost the economy to some extent and will help increase beef
consumption.

Imported stocks of U.S. beef have run out. Beef restaurants are having
trouble securing beef that meets the quality level of U.S. beef but is
still less expensive than Hanwoo beef. This is because consumers prefer
the taste of grain fed U.S. beef which cannot be found among the
suppliers of imported beef that are currently in the market. The gap
created by the absence of U.S. and Canadian beef has left the market
divided into distinct high and low-end categories. Within the high-end
market consumers continue to purchase prime quality Hanwoo beef even
though the price is about 4,000 won (US\$3.9)/kg more expensive than
select quality Hanwoo beef. The lower end category is comprise of
imported beef or beef produced from local dairy cattle or imported
cattle.

Korean language web sites of interest (some contain limited information
in English):

Ministry of Agriculture & Forestry: www.maf.go.kr

National Agricultural Products Quality Service: www.naqs.go.kr

National Agricultural Cooperatives Federation:
[www.nacf.co.kr](http://www.nacf.co.kr/)

Korea Rural Economic Institute www.krei.re.kr

Korea Swine Association: [www.koreapork.or.kr]{.underline}

The conversion factor used for converting carcass to boneless weight is
1.25 for pork and 1.36 for beef.

# Section III: Swine and Pork

The swine industry has been enjoying historically high swine prices due
to a decline in swine inventory and increased pork consumption since
cases of BSE were detected in North America. Substitution of pork for
poultry meat following outbreaks of avian influenza (AI) in countries
that were major poultry meat suppliers to Korea has also contributed to
strong demand for pork. Initial concerns regarding BSE and AI have eased
and consumers are, to a degree, increasing consumption of beef and
poultry meat.

Despite the signs that pork demand may have peaked, pork prices remain
high as increases in domestic swine inventories have been hampered by
continuing problems with swine disease outbreaks in Korea and
implementation of strict environmental regulations. Swine inventory
levels have consequently contracted significantly in 2005 and have
offset reduced pork demand to keep swine prices high. Various
environmental restrictions will continue to tighten the supply of swine
production in 2006. Also, if U.S. beef imports are resumed, ending swine
inventories in 2006 may contract to levels below 2005.

The Korean swine industry has suffered from three major porcine diseases
that have caused the overall inventory to drop. The so called "three
P's," are Post-weaning Multi-systemic Wasting Syndrome (PMWS), Porcine
Reproductive & Respiratory Syndrome (PRRS), and Porcine Epidemic
Diarrhea (PED). The disease problems have resulted in high losses of
weaning pigs.

The Korean government's requirement to register all swine farms that
have over 50 square meters of livestock growing facilities by the end of
2005 is another factor limiting herd expansion. Farms subject to
registration must be equipped with pollution control facilities and meet
certain minimum space requirements per animal. Due to the costs
associated with complying with the regulations, only 72.7 percent of the
farms subject to registration requirements had registered as of August
12, 2005.

The increased fee for disposal of swine excrements is another negative
factor that is limiting increases in swine inventories. The fee
increased from 16,000 won/MT (US\$15.5) in 2004 to 20,000 won/MT
(US\$19.4) in 2005. There are rumors that the fee may go up another 20
percent.

Another environmental-related law that went into effect as of February
2005 is called the Act on Prevention of Offensive Odor. This Act
requires the control of 12 different types of odor, including ammonia in
2005. In 2006, 5 other types of odor, including toluene will be added
onto the list and 5 more types of odor, including propionic acid, will
be added to the list again in 2007. The Korean government distributed
11,000 copies of handbook on controlling odor in swine farms. If the
government receives a complaint from a neighbor about odor, it will
conduct an investigation and will give out a warning notice for the
first violation. The second violation will be subject to a fine and the
third violation will mean the closure of the farm. Such strict measures
have forced smaller farms that cannot afford to purchase pollution
control equipment to exit from swine production. Large farms that have
more than 1,000 head accounted for 77 percent of swine production in
Korea as of June 2005. The decision by the Korean government on when to
lift the import ban placed on U.S. beef will also influence pork and, in
turn, swine production levels.

Despite the constraints to increasing swine inventory, producers who are
able to raise swine are enjoying a lucrative year. The average
production cost of a hog is 179,000 won/head (US\$173). With farm gate
prices reaching 277,000 won/per head (US\$268), farmers are earning
roughly US\$95 per head. Such high domestic swine prices have increased
pork imports in 2005. Also, limitations to increasing the herd size due
to strict environmental restrictions will inhibit domestic production
from capturing a greater share of consumption in 2006 and will result in
higher import volumes.

High domestic swine prices are creating other problems. As farm gate
prices surge, farmers are less concerned about quality and are sending
hogs to the slaughter plants before they are over 110 kg resulting in
reduced quality pork. The average slaughter weight dropped from 110 kg
during the first quarter of 2005 to 108 kg during the second quarter of
2005. Because of the unstable quality of domestic pork, imported frozen
pork of consistent quality has commanded a price premium over domestic
frozen pork.

According to a survey conducted by the National Agricultural
Cooperatives Federation (NACF) in 2005, consumers cited their reasons
for eating pork as:

-   because of its good taste (54.3 percent);

-   because other family members like pork (21.2 percent);

-   because of the low price (10.7 percent).

When NACF marketed the first organic pork on August 12, 2005, it was
quickly sold out despite prices that were three times higher than
non-organic pork. Organic pork bellies, the most popular cut, sold for
42,900/kg (US\$41.55/kg). Organic Boston butts sold for 32,100 won/kg
(US\$31.1/kg). The prices for organic pork exceeded prices for
low-priced Hanwoo beef cuts such as rounds, which sold for 25,800 won/kg
(US\$24.99/kg).

The Japanese government requires exporting countries to be free from
classical swine fever (CSF) for one year from the last vaccination.
Therefore, as Korea continued to vaccinate against CSF in 2005,
prospects for exporting fresh/chilled/frozen pork to Japan, once Korea's
largest export market, seem unlikely for the near future. Korea and
Japan reached an agreement in August 2005 to allow for Korean
heat-treated pork to be exported to Japan. However, because of high pork
prices in Korea, there is not much incentive to export heat-treated pork
to Japan at the moment. Small amounts of Korean pork continue to be
exported to the Philippines but exports to Russia have ceased because
domestic prices are more attractive.

Government negotiations on a breeding hog export protocol to the
Philippines are not progressing as expected. Korean breeding farms are
also not eager to export hogs to the Philippines because there is a high
demand from the local swine industry. Korean exporters are looking
forward to the FTA agreement with ASEAN, which is composed of ten South
East Asian nations. The Korean government hopes to sign an agreement by
2006 with implementation in 2007.

The Korean Swine Association plans to spend 7.9 billion won (about
US\$7.67 million) in 2005 on promotional activities to increase the
consumption of unpopular cuts by airing ads on television and radio
programs. This is a significant increase from the 2.6 billion won (about
US\$2.25 million) expended on such activities in 2004. Over 81.5 percent
of the consumers were aware of the promotion and 55 percent of the
surveyed consumers replied that their perception towards unpopular lean
pork cuts had improved favorably. As with beef promotion, pork exporters
are also focusing on food safety as a major component in promotional
activities. Similarly, Danish pork promotions are focusing on the
safety. The U.S. Meat Export Federation has actively promoted U.S. pork
in major discount stores in Korea along with private U.S. pork export
companies who have featured promotions of 'chilled' U.S. pork.

Selected support programs for the swine sector in 2005, some of which
also encompass the cattle sector, follow:

[Support for Branded Pork:]{.underline} The government plans to provide
163 billion won (\$158 million) to enhance the total amount of pork
marketed under brand names. It will provide loans under the program at
an interest rate of 3 percent per annum, with a 3-year grace period and
full repayment at the end of the loan period. In 2005, there are 207
registered brands (including beef and chicken). The Korean government's
goal is to focus the program on active brand names and reduce the total
number of brands participating in the program to 80 or 90 by 2007.

[Mandatory Livestock Registration]{.underline}: See details in Section
II.

The Korea Chile Free Trade Agreement (FTA) went into effect April 1,
2004. One result of the FTA has been that Korea has increased duty-free
quota access for Chilean pork and reduced duties on out-of-quota pork
imports from Chile. Pork imports from Chile are projected to rise from
23,203 MT in 2004 to 33,600 MT in 2005. Chilean pork exporters will have
tariff-free access to Korea for most cuts after the Chile-Korea FTA has
been in effect for 10 years. Korea and Chile will negotiate the tariff
treatment for carcasses and half-carcasses under the FTA after the end
of the Doha Development Agenda negotiations.

+-------------+--------------------------------+-----------------------+
| Korea-Chile |                                |                       |
| Free Trade  |                                |                       |
| Agreement:  |                                |                       |
| Impact on   |                                |                       |
| Pork Trade  |                                |                       |
+-------------+--------------------------------+-----------------------+
| HS Heading  | Description                    | Category 1/           |
+-------------+--------------------------------+-----------------------+
| 0203        | Meat of swine, fresh, chilled  |                       |
|             | or frozen.                     |                       |
+-------------+--------------------------------+-----------------------+
| 02031       | Fresh or chilled:              |                       |
+-------------+--------------------------------+-----------------------+
| 0203110000  | Carcasses and half-carcasses   | Year 10               |
+-------------+--------------------------------+-----------------------+
| 0203120000  | Hams, shoulders and cuts       | Year 10               |
|             | thereof, with bone in          |                       |
+-------------+--------------------------------+-----------------------+
| 020319      | Other                          |                       |
+-------------+--------------------------------+-----------------------+
| 0203191000  | Belly                          | Year 10               |
+-------------+--------------------------------+-----------------------+
| 0203199000  | Other                          | Year 10               |
+-------------+--------------------------------+-----------------------+
| 02032       | Frozen:                        |                       |
+-------------+--------------------------------+-----------------------+
| 0203210000  | Carcasses and half-carcasses   | Doha Development      |
|             |                                | Agenda 2/             |
+-------------+--------------------------------+-----------------------+
| 0203220000  | Hams, shoulders and cuts       | Year 10               |
|             | thereof, with bone in          |                       |
+-------------+--------------------------------+-----------------------+
| 020329      | Other                          |                       |
+-------------+--------------------------------+-----------------------+
| 0203291000  | Belly                          | Year 10               |
+-------------+--------------------------------+-----------------------+
| 0203299000  | Other                          | Year 10               |
+-------------+--------------------------------+-----------------------+
| 1/ Chilean  |                                |                       |
| pork        |                                |                       |
| exporters   |                                |                       |
| will have   |                                |                       |
| tariff-free |                                |                       |
| access to   |                                |                       |
| Korea for   |                                |                       |
| most cuts   |                                |                       |
| after the   |                                |                       |
| Chile-Korea |                                |                       |
| FTA has     |                                |                       |
| been in     |                                |                       |
| effect for  |                                |                       |
| 10 years.   |                                |                       |
|             |                                |                       |
| 2/ Korea    |                                |                       |
| and Chile   |                                |                       |
| will        |                                |                       |
| negotiate   |                                |                       |
| the tariff  |                                |                       |
| treatment   |                                |                       |
| for         |                                |                       |
| carcasses   |                                |                       |
| and         |                                |                       |
| hal         |                                |                       |
| f-carcasses |                                |                       |
| under the   |                                |                       |
| FTA after   |                                |                       |
| the end of  |                                |                       |
| the Doha    |                                |                       |
| Development |                                |                       |
| Agenda      |                                |                       |
| ne          |                                |                       |
| gotiations. |                                |                       |
+-------------+--------------------------------+-----------------------+

Customs duties on imports into Korea originating in Chile under category
\"Year 10\" shall be eliminated in accordance with the following
timetable.

<table style="width:100%;">
<colgroup>
<col style="width: 14%" />
<col style="width: 8%" />
<col style="width: 7%" />
<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%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="13"><em><strong>Korea-Chile Free Trade Agreement: Tariff
Staging for Product in Year 10 Category</strong></em></td>
</tr>
<tr class="even">
<td rowspan="2">“Year 10” Category</td>
<td colspan="2"><em>2004</em></td>
<td rowspan="2"><em>2005</em></td>
<td rowspan="2"><em>2006</em></td>
<td rowspan="2"><em>2007</em></td>
<td rowspan="2"><em>2008</em></td>
<td rowspan="2"><em>2009</em></td>
<td rowspan="2"><em>2010</em></td>
<td rowspan="2"><em>2011</em></td>
<td rowspan="2"><em>2012</em></td>
<td rowspan="2"><em>2013</em></td>
<td rowspan="2"><em>2014</em></td>
</tr>
<tr class="odd">
<td><em>Before Apr 1</em></td>
<td><em>After Apr 1</em></td>
</tr>
<tr class="even">
<td>Percentages of annual tariff reduction</td>
<td><em>0</em></td>
<td><em>9.1</em></td>
<td><em>18.2</em></td>
<td><em>27.3</em></td>
<td><em>36.4</em></td>
<td><em>45.5</em></td>
<td><em>54.5</em></td>
<td><em>63.6</em></td>
<td><em>72.7</em></td>
<td><em>81.8</em></td>
<td><em>90.9</em></td>
<td><em>100</em></td>
</tr>
<tr class="odd">
<td><p>Example:</p>
<p>Tariffs (%) for Frozen Bellies</p>
<p>From Chile</p>
<p>0203.29.1000</p></td>
<td>25</td>
<td>22.7</td>
<td>20.5</td>
<td>18.2</td>
<td><em>15.9</em></td>
<td><em>13.6</em></td>
<td><em>11.4</em></td>
<td><em>9.1</em></td>
<td><em>6.8</em></td>
<td><em>4.6</em></td>
<td><em>2.3</em></td>
<td><em>0</em></td>
</tr>
</tbody>
</table>

Korean language web sites of interest (some contain limited information
in English):

Ministry of Agriculture & Forestry: www.maf.go.kr

National Agricultural Products Quality Service: www.naqs.go.kr

National Agricultural Cooperatives Federation: www.nacf.co.kr

Korea Rural Economic Institute www.krei.re.kr

Korea Swine Association: www.koreapork.or.kr

The conversion factors used for converting a carcass to a boneless
weight are 1.25 for pork, 1.36 for beef.

# Section IV: Statistical Tables: Cattle and Beef

## PS&D Table for Cattle

![](media/image2.wmf)

## PS&D Table for Beef

![](media/image3.wmf)

## Cattle and Beef Tables

**Korea: Beef Imports (2004 -- 2005)**

  ----------------------- ----------------------- -----------------------
  Country                 2004                    2005

                          Revised                 Preliminary

                          (In metric tons,        
                          product weight          
                          equivalent)             

  U.S.A.                  25,427                  800

  Australia               88,719                  94,600

  New Zealand             44,881                  42,300

  Mexico                  769                     1,800

  Canada                  261                     10

  Others                  69                      490

  TOTAL                   106,126                 140,000
  ----------------------- ----------------------- -----------------------

Source: Korea Customs Service, Office of Ag. Affairs

Product Weight Equivalent

**Korea: Beef Imports (Annual 2004, First Six Months of 2004 and 2005)**

(Unit: Metric tons and \$000)

  ----------- ---------- ---------- ---------- ---------- ---------- ----------
  Country     Annual                Jan. --               Jan. --    
              2004                  Jun., 2004            Jun., 2005 

              Volume     Value      Volume     Value      Volume     Value

  U.S.A.      25,427     95,403     18,405     65,948     719        3,795

  Australia   88,719     315,794    38,435     131,424    55,582     216,486

  New Zealand 44,881     130,486    21,326     59,219     24,835     88,130

  Mexico      769        1,976      266        607        1,036      4,020

  Canada      261        209        261        209        1          8

  Others      69         402        56         115        118        320

  TOTAL       160,126    544,270    78,749     257,522    82,291     312,759
  ----------- ---------- ---------- ---------- ---------- ---------- ----------

Source: Korea Customs Service, Office of Ag. Affairs

Product Weight Equivalent

Korea: Processed Beef Imports (Annual 2004, First Six Months of 2004 and
2005)

(Unit: Metric tons and \$000)

  ------------ ---------- ---------- ---------- ---------- ---------- ----------
  Country      Annual                Jan. --               Jan. --    
               2004                  Jun., 2004            Jun., 2005 

               Volume     Value      Volume     Value      Volume     Value

  U.S.A.       1          12         1          12         0          0

  Mongolia     29         32         29         32         27         18

  Brazil       18         17         0          0          0          0

  PRC          17         7          17         7          16         23

  Australia    16         175        9          84         2          38

  Philippine   12         25         6          13         4          8

  Other        0          0          0          0          0          0

  TOTAL        93         268        62         148        49         87
  ------------ ---------- ---------- ---------- ---------- ---------- ----------

Source: Korea Customs Service, Office of Ag. Affairs

Product Weight Equivalent (HS 021020 and 160250)

**Korea: Processed Beef Exports:** Exports of processed beef products
were minimal. Korea exported a total of 4.8 MT in 2004, compared to 7 MT
in 2003. There were no exports during the first six months of 2005.

Korea: Cattle Slaughter Trend

  ----------------- ----------------- ----------------- -----------------
  Month             Total             Cows              Steers

                    (Heads                              
                    Slaughtered)                        

  Total 1997        1,125,281         573,954           551,327

  Total 1998        1,282,290         643,266           639,024

  Total 1999        1,096,207         614,325           481,882

  Total 2000        997,331           547,745           449,586

  Total 2001        729,245           369,039           360,206

  Total 2002        633,024           313,466           319,558

  Total 2003        583,799           268,986           314,813

  Total 2004        574,426           254,761           319,665

  January, 2004     51,733            21,662            30,071

  February, 2004    21,932            11,160            10,772

  March, 2004       34,746            16,903            17,843

  April, 2004       45,603            20,959            24,644

  May, 2004         47,426            21,672            25,754

  June, 2004        48,940            20,781            28,159

  July, 2004        47,583            21,958            25,625

  August, 2004      48,616            21,058            27,558

  September, 2004   78,393            33,012            45,381

  October, 2004     42,975            19,151            23,824

  November, 2004    50,952            21,837            29,115

  December, 2004    55,527            24,608            30,919

  January, 2005     73,666            29,417            44,249

  February, 2005    51,342            23,818            27,524

  March, 2005       43,620            16,538            27,082

  April, 2005       43,115            18,484            24,631

  May, 2005         44,449            19,157            25,292

  June, 2005        41,423            18,093            23,330
  ----------------- ----------------- ----------------- -----------------

Source: Ministry of Agriculture & Forestry

**Korea: Live Hanwoo Beef Cattle Prices**

(Won per head, Exchange rate is US\$1=1,030 won)

  ---------------- ------------- ------------- ------------- -------------
  Month/Year       Calf                        500 Kg.       

                   Female        Male          Female        Male \*

  1999 Average     774,000       1,024,000     2,401,000     2,488,000

  2000 Average     1,103,000     1,294,000     2,872,000     2,752,000

  2001 Average     1,729,000     1,785,000     3,514,000     3,245,000

  2002 Average     2,306,000     2,288,000     4,236,000     3,927,000

  2003 Average     3,242,000     2,610,000     4,849,000     3,907,000

  2004 Average     3,226,000     2,246,000     4,339,000     3,512,000

  January, 2004    3,792,000     2,731,000     5,119,000     3,955,000

  February, 2004   3,601,000     2,573,000     4,858,000     3,625,000

  March, 2004      3,487,000     2,427,000     4,690,000     3,452,000

  April, 2004      3,264,000     2,250,000     4,445,000     3,177,000

  May, 2004        2,751,000     1,998,000     4,087,000     2,925,000

  June, 2004       2,874,000     2,068,000     3,944,000     2,917,000

  July, 2004       3,168,000     2,205,000     4,114,000     3,374,000

  August, 2004     3,192,000     2,165,000     4,181,000     3,567,000

  September, 2004  3,202,000     2,167,000     4,155,000     3,659,000

  October, 2004    3,181,000     2,178,000     4,198,000     3,872,000

  November, 2004   3,165,000     2,133,000     4,169,000     3,877,000

  December, 2004   3,033,000     2,059,000     4,106,000     3,740,000

  January, 2005    2,877,000     2,037,000     4,022,000     3,520,000

  February, 2005   2,920,000     2,131,000     4,036,000     3,563,000

  March, 2005      3,037,000     2,216,000     4,175,000     3,605,000

  April, 2005      3,219,000     2,316,000     4,215,000     3,634,000

  May, 2005        3,294,000     2,343,000     4,220,000     3,648,000

  June, 2005       3,372,000     2,409,000     4,223,000     3,695,000

  July, 2005       3,414,000     2,410,000     4,259,000     3,799,000
  ---------------- ------------- ------------- ------------- -------------

Source: Ministry of Agriculture & Forestry

National Agricultural Cooperatives Federation

\* These are average prices of non-castrated bulls, which are very price
elastic to demand. Castrated steers are less price elastic to demand
but, as they go directly to the slaughter plants without going through
the livestock market, they are not included in these figures and
represents about 10 percent of the slaughter numbers. After the year-end
and New Year, the demand for beef drops significantly.

**Korea: Monthly Beef Import Prices (CIF)**

Unit: Dollars per Metric Ton

  ----------------------- ----------------------- -----------------------
  Month                   2004                    2005

  January                 3,399                   3,682

  February                3,010                   3,888

  March                   3,128                   3,837

  April                   3,274                   3,974

  May                     3,389                   3,727

  June                    3,364                   3,756

  July                    3,564                   3,670

  August                  3,514                   

  September               3,597                   

  October                 3,383                   

  November                3,541                   

  December                3,543                   
  ----------------------- ----------------------- -----------------------

Source: Korea International Trade Association

Note: Prices are average of all cuts, regardless of country of origin,
whether chilled/frozen or bone-in or boneless.

# 

**Korea: Per Capita Consumption of Livestock Products**

Unit: Kilogram, boneless basis

  ----------- ----------- ----------- ----------- ----------- -----------
  Year        Total Meat  Beef        Pork        Chicken     Egg

  1995        27.5        6.7         14.8        6.0         10.1

  1997        29.3        7.9         15.3        6.1         10.4

  1999        30.6        8.4         16.1        6.1         9.9

  2000        32.0        8.5         16.5        7.0         10.3

  2001        32.2        8.1         16.8        7.3         11.1

  2002        33.5        8.5         17.0        8.0         11.3

  2003        33.3        8.1         17.3        7.9         10.5

  2004        31.3        6.8         17.9        6.6         10.6
  ----------- ----------- ----------- ----------- ----------- -----------

Source: National Agricultural Cooperatives Federation

Korea Rural Economic Institute

Ministry of Agriculture & Forestry

**Korea: Hanwoo Cattle Inventory**

(1,000 Household, 1,000 Head)

  ---------- ------------ -------- -------- -------- -------- -------- --------
  Month /    House-hold   Total    By Age                     Cow      
  Year                    Stock                                        

                                   Under 1  1-2 year Over 2   1-2 year Over 2
                                   year old old      year old old      year old

  Sep., 1997 482          2,880    1,191    528      1,161    277      1,146

  Dec., 1997 465          2,735    1,102    535      1,098    275      1,082

  Mar., 1998 474          2,762    1,043    580      1,139    300      1,118

  Jun., 1998 466          2,750    1,058    588      1,104    305      1,082

  Sep., 1998 450          2,633    1,015    585      1,033    306      1,013

  Dec., 1998 427          2,383    895      556      932      296      913

  Mar., 1999 413          2,198    812      503      883      276      862

  Jun., 1999 399          2,167    801      512      854      280      834

  Sep., 1999 372          2,094    758      520      816      272      794

  Dec., 1999 350          1,952    717      489      746      256      726

  Mar., 2000 336          1,819    646      461      712      239      690

  Jun., 2000 326          1,801    666      434      701      215      678

  Sep., 2000 305          1,713    642      412      659      199      639

  Dec., 2000 290          1,590    589      390      611      188      593

  Mar., 2001 267          1,476    540      361      575      172      556

  Jun., 2001 260          1,507    544      383      580      178      562

  Sep., 2001 247          1,485    544      370      571      171      552

  Dec., 2001 235          1,406    506      351      549      163      532

  Mar., 2002 227          1,371    499      328      544      149      525

  Jun., 2002 224          1,448    558      324      566      146      546

  Sep., 2002 218          1,461    557      335      569      144      546

  Dec., 2002 212          1,410    521      335      554      146      532

  Mar., 2003 191          1,337    484      325      528      141      504

  Jun., 2003 190          1,423    529      349      545      152      521

  Sep., 2003 189          1,464    551      355      558      156      533

  Dec., 2003 188          1,480    546      366      568      157      543

  Mar., 2004 189          1,521    536      389      596      163      569

  Jun., 2004 189          1,627    586      409      632      172      600

  Sep., 2004 189          1,667    602      416      649      176      617

  Dec., 2004 189          1,666    609      409      648      177      617

  Mar., 2005 191          1,654    603      397      654      184      622

  Jun., 2005 192          1,757    646      427      684      192      647
  ---------- ------------ -------- -------- -------- -------- -------- --------

Source: National Agricultural Products Quality Management Service

Note: Total animal numbers may not add up, due to rounding.

**Korea: Hanwoo Cattle -- Cow/Calf Ratio**

(1,000 Head)

+-----------------+-----------------+-----------------+-----------------+
| Month/Year      | Calf            | Cow             | Ratio (%)       |
|                 |                 |                 |                 |
|                 | (Under 1 year)  | (Over 1 year)   |                 |
+-----------------+-----------------+-----------------+-----------------+
| Sep., 1997      | 1,191           | 1,423           | 83.7            |
+-----------------+-----------------+-----------------+-----------------+
| Dec., 1997      | 1,102           | 1,357           | 81.2            |
+-----------------+-----------------+-----------------+-----------------+
| Mar., 1998      | 1,043           | 1,418           | 73.6            |
+-----------------+-----------------+-----------------+-----------------+
| Jun., 1998      | 1,058           | 1,387           | 76.3            |
+-----------------+-----------------+-----------------+-----------------+
| Sep., 1998      | 1,015           | 1,319           | 77.0            |
+-----------------+-----------------+-----------------+-----------------+
| Dec., 1998      | 895             | 1,209           | 74.0            |
+-----------------+-----------------+-----------------+-----------------+
| Mar., 1999      | 812             | 1,138           | 71.4            |
+-----------------+-----------------+-----------------+-----------------+
| Jun., 1999      | 801             | 1,114           | 71.9            |
+-----------------+-----------------+-----------------+-----------------+
| Sep., 1999      | 758             | 1,066           | 71.1            |
+-----------------+-----------------+-----------------+-----------------+
| Dec., 1999      | 717             | 982             | 73.0            |
+-----------------+-----------------+-----------------+-----------------+
| Mar., 2000      | 646             | 929             | 69.5            |
+-----------------+-----------------+-----------------+-----------------+
| Jun., 2000      | 666             | 893             | 74.6            |
+-----------------+-----------------+-----------------+-----------------+
| Sep., 2000      | 642             | 838             | 76.6            |
+-----------------+-----------------+-----------------+-----------------+
| Dec., 2000      | 589             | 781             | 75.4            |
+-----------------+-----------------+-----------------+-----------------+
| Mar., 2001      | 540             | 728             | 74.2            |
+-----------------+-----------------+-----------------+-----------------+
| Jun., 2001      | 544             | 740             | 73.5            |
+-----------------+-----------------+-----------------+-----------------+
| Sep., 2001      | 544             | 723             | 75.2            |
+-----------------+-----------------+-----------------+-----------------+
| Dec., 2001      | 506             | 695             | 72.8            |
+-----------------+-----------------+-----------------+-----------------+
| Mar., 2002      | 499             | 674             | 74.0            |
+-----------------+-----------------+-----------------+-----------------+
| Jun., 2002      | 558             | 692             | 80.6            |
+-----------------+-----------------+-----------------+-----------------+
| Sep., 2002      | 557             | 690             | 80.7            |
+-----------------+-----------------+-----------------+-----------------+
| Dec., 2002      | 521             | 678             | 76.8            |
+-----------------+-----------------+-----------------+-----------------+
| Mar., 2003      | 484             | 645             | 75.0            |
+-----------------+-----------------+-----------------+-----------------+
| Jun., 2003      | 529             | 673             | 78.6            |
+-----------------+-----------------+-----------------+-----------------+
| Sep., 2003      | 551             | 689             | 80.0            |
+-----------------+-----------------+-----------------+-----------------+
| Dec., 2003      | 546             | 700             | 78.0            |
+-----------------+-----------------+-----------------+-----------------+
| Mar., 2004      | 536             | 732             | 73.2            |
+-----------------+-----------------+-----------------+-----------------+
| Jun., 2004      | 586             | 772             | 75.9            |
+-----------------+-----------------+-----------------+-----------------+
| Sep., 2004      | 602             | 793             | 75.9            |
+-----------------+-----------------+-----------------+-----------------+
| Dec., 2004      | 609             | 794             | 76.7            |
+-----------------+-----------------+-----------------+-----------------+
| Mar., 2005      | 603             | 806             | 74.8            |
+-----------------+-----------------+-----------------+-----------------+
| Jun., 2005      | 646             | 839             | 77.0            |
+-----------------+-----------------+-----------------+-----------------+

Source: National Agricultural Products Quality Management Service

**Korea: Cattle/Beef Tariff Table for CY2005**

(N: In-quota / M: Out-of-quota)

+------------+-----------------------+---------+--------+-------------+
| Tariff     | Product Description   | WTO     | C      | Other       |
| Number     |                       | Bound   | urrent | Information |
|            |                       | Rate    | A      |             |
|            |                       |         | pplied |             |
|            |                       |         | Rate   |             |
+------------+-----------------------+---------+--------+-------------+
| 01         | Pure-bred breeding    | N: 0    | N: 0   | Total       |
| 02.10.1000 | milk cow              |         |        | in-quota    |
|            |                       | M:      | M:     | amounts for |
|            |                       | 89.1%   | 89.1%  | these three |
|            |                       |         |        | HS numbers  |
|            |                       |         |        | are 1,067   |
|            |                       |         |        | heads.      |
+------------+-----------------------+---------+--------+-------------+
| 01         | Pure-bred breeding    | N: 0    | N: 0   |             |
| 02.10.2000 | beef cattle           |         |        |             |
|            |                       | M:      | M:     |             |
|            |                       | 89.1%   | 89.1%  |             |
+------------+-----------------------+---------+--------+-------------+
| 01         | Pure-bred breeding -  | N: 0    | N: 0   |             |
| 02.10.9000 | other                 |         |        |             |
|            |                       | M:      | M:     |             |
|            |                       | 89.1%   | 89.1%  |             |
+------------+-----------------------+---------+--------+-------------+
| 01         | Other milk cow        | 40.0%   | 40.0%  | Import was  |
| 02.90.1000 |                       |         |        | liberalized |
|            |                       |         |        | on Jan. 1,  |
|            |                       |         |        | 2001.       |
+------------+-----------------------+---------+--------+-------------+
| 01         | Other beef cattle     | 40.0%   | 40.0%  |             |
| 02.90.2000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 01         | Other                 | 0       | 0      |             |
| 02.90.9000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Beef (fresh or        |         |        |             |
| 01.00.0000 | chilled)              |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Carcass and           | 40.0%   | 40.0%  | Import was  |
| 01.10.0000 | half-carcass          |         |        | liberalized |
|            |                       |         |        | on Jan. 1,  |
|            |                       |         |        | 2001.       |
+------------+-----------------------+---------+--------+-------------+
| 02         | Other cuts with       | 40.0%   | 40.0%  |             |
| 01.20.0000 | bone-in               |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Boneless              | 40.0%   | 40.0%  |             |
| 01.30.0000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Beef (Frozen)         |         |        |             |
| 02.00.0000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Carcass and           | 40.0%   | 40.0%  | Import was  |
| 02.10.0000 | half-carcass          |         |        | liberalized |
|            |                       |         |        | on Jan. 1,  |
|            |                       |         |        | 2001.       |
+------------+-----------------------+---------+--------+-------------+
| 02         | Other cuts with       | 40.0%   | 40.0%  |             |
| 02.20.0000 | bone-in               |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Boneless              | 40.0%   | 40.0%  |             |
| 02.30.0000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Beef offal (fresh or  | 18.0%   | 18.0%  |             |
| 06.10.0000 | chilled)              |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Beef offal (frozen)   |         |        |             |
| 06.20.0000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Tongues               | 18.0%   | 18.0%  |             |
| 06.21.0000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Livers                | 18.0%   | 18.0%  |             |
| 06.22.0000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Other                 |         |        |             |
| 06.29.0000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Tails                 | 18.0%   | 18.0%  |             |
| 06.29.1000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Feet                  | 18.0%   | 18.0%  |             |
| 06.29.2000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Other                 | 18.0%   | 18.0%  |             |
| 06.29.9000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Meat and edible meat  |         |        |             |
| 10.20.0000 | offal of bovine       |         |        |             |
|            | animals, salted, in   |         |        |             |
|            | brine, dried or       |         |        |             |
|            | smoked; edible flours |         |        |             |
|            | and meals of meat or  |         |        |             |
|            | meat offal of bovine  |         |        |             |
|            | animals.              |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Dried or smoked       | 27.0%   | 27.0%  |             |
| 10.20.1000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 02         | Other                 | 27.0%   | 27.0%  |             |
| 10.20.9000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 16         | Other prepared or     |         |        |             |
| 02.50.0000 | preserved meat, meat  |         |        |             |
|            | offal or blood, of    |         |        |             |
|            | bovine animals        |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 16         | In airtight           | 72.0%   | 72.0%  |             |
| 02.50.1000 | containers            |         |        |             |
+------------+-----------------------+---------+--------+-------------+
| 16         | Other                 | 72.0%   | 72.0%  |             |
| 02.50.9000 |                       |         |        |             |
+------------+-----------------------+---------+--------+-------------+

Source: Korea Customs and Trade Institute

N: in-quota rate; M: out-of-quota rate

# Section V: Statistical Tables: Swine and Pork

## PS&D Table for Swine

![](media/image4.wmf)

## PS& Table for Pork

![](media/image5.wmf)

## Swine and Pork Tables

**Korea: Pork Imports (2004 -- 2005)**

  ----------------------- ----------------------- -----------------------
  Country                 2004                    2005

                          Revised                 Preliminary

                          (In metric tons,        
                          product weight          
                          equivalent)             

  U.S.A.                  20,931                  30,400

  Canada                  39,609                  53,100

  Chile                   23,203                  33,600

  Denmark                 22,345                  32,400

  Belgium                 19,649                  28,500

  France                  13,781                  20,000

  Netherlands             8,748                   12,700

  Hungary                 7,951                   11,500

  Austria                 6,470                   9,400

  Poland                  4,442                   6,400

  Spain                   2,054                   3,000

  Sweden                  1,689                   2,500

  Finland                 1,581                   2,200

  Australia               1,506                   2,100

  Mexico                  285                     400

  United Kingdom          185                     300

  Other                   854                     1,500

  TOTAL                   175,283                 250,000
  ----------------------- ----------------------- -----------------------

Source: Korea Customs Service, Office of Ag. Affairs

Product Weight Equivalent

**Korea: Pork Imports (Annual 2004, First Six Months of 2004 and 2005)**

(Unit: MT & \$000)

  ------------- --------- --------- --------- --------- --------- ---------
  Country       Annual              Jan. --             Jan. --   
                2004                Jun.,               Jun.,     
                                    2004                2005      

                Volume    Value     Volume    Value     Volume    Value

  U.S.A.        20,931    38,347    9,638     16,241    29,262    67,830

  Canada        39,609    37,970    18,863    14,941    27,381    39,212

  Chile         23,203    54,625    10,925    24,321    14,677    37,270

  Denmark       22,345    27,661    11,122    12,814    11,515    19,979

  Belgium       19,649    51,913    11,322    27,012    8,553     27,272

  France        13,781    39,003    6,698     16,986    9,670     32,319

  Netherlands   8,748     23,888    4,476     10,967    4,854     16,515

  Hungary       7,951     16,780    3,947     6,901     4,122     11,703

  Austria       6,470     17,104    2,579     6,181     4,636     13,120

  Poland        4,442     9,259     1,591     2,922     2,799     7,410

  Spain         2,054     4,768     0         0         4,657     9,439

  Sweden        1,689     2,666     636       834       883       1,318

  Finland       1,581     2,953     819       1,516     766       1,558

  Australia     1,506     3,601     676       1,493     1,165     2,588

  Mexico        285       910       45        131       1,343     4,495

  United        185       584       0         0         1,047     2,060
  Kingdom                                                         

  Other         854       1,579     634       882       668       1,314

  TOTAL         175,283   333,611   83,971    144,142   127,998   295,402
  ------------- --------- --------- --------- --------- --------- ---------

Source: Korea Customs Service

Product Weight Equivalent (HS Code: 0203)

**Korea: Pork Exports (2004 -- 2005)**

  ----------------------- ----------------------- -----------------------
  Country                 2004                    2005

                          Revised                 Preliminary

                          (In metric tons,        
                          product weight          
                          equivalent)             

  U.S.A.                  0                       0

  Philippine              4,440                   3,500

  Russia                  1,683                   400

  Japan                   811                     100

  Mongolia                114                     0

  Others                  42                      0

  TOTAL                   7,090                   4,000
  ----------------------- ----------------------- -----------------------

Source: Korea Customs Service, Office of Agricultural Affairs

**Korea: Processed Pork Imports (Annual 2004, First Six Months of 2004
and 2005)**

(Unit: (MT & \$000)

  ----------- --------- --------- --------- --------- --------- ---------
  Country     Annual              Jan. --             Jan. --   
              2004                Jun.,               Jun.,     
                                  2004                2005      

              Volume    Value     Volume    Value     Volume    Value

  U.S.A.      432       1,888     220       894       252       1,042

  PRC         151       229       83        126       103       140

  Denmark     24        87        15        53        6         24

  Spain       4         44        1         16        2         18

  Australia   3         59        2         36        1         26

  Poland      3         19        0         0         27        120

  Canada      1         17        1         8         1         8

  Other       1         8         1         7         1         9

  TOTAL       619       2,351     323       1,140     393       1,387
  ----------- --------- --------- --------- --------- --------- ---------

Source: Korea Customs Service

Product Weight Equivalent (HS 0210.1, 1602.41, 1602.42)

Korea: Processed Pork Exports (Annual 2004, First Six Months of 2004 and
2005)

(Unit: MT & \$000)

  ------------ ---------- ---------- ---------- ---------- ---------- ----------
  Country      Annual                Jan. --               Jan. --    
               2004                  Jun., 2004            Jun., 2005 

               Volume     Value      Volume     Value      Volume     Value

  U.S.A.       0          0          0          0          0          0

  Germany      312        801        208        380        21         94

  Philippine   168        64         168        64         0          0

  Japan        72         655        59         527        4          27

  PRC          0          0          0          0          2          13

  TOTAL        552        1,520      435        971        27         134
  ------------ ---------- ---------- ---------- ---------- ---------- ----------

Source: Korea Customs Service

Product Weight Equivalent (HS 0210.1, 1602.41, 1602.42)

**Korea: Pork Exports (Annual 2004, First Six Months of 2004 and 2005)**

(Unit: MT & \$000)

  ------------ ---------- ---------- ---------- ---------- ---------- ----------
  Country      Annual                Jan. --               Jan. --    
               2004                  Jun., 2004            Jun., 2005 

               Volume     Value      Volume     Value      Volume     Value

  U.S.A.       0          0          0          0          0          0

  Philippine   4,440      3,986      2,522      2,564      1,745      1,211

  Russia       1,683      2,471      1,515      2,008      0          0

  Japan        811        3,659      145        624        5          54

  Mongolia     114        42         114        42         0          0

  Other        42         120        24         56         0          0

  Total        7,090      10,278     4,320      5,294      1,750      1,265
  ------------ ---------- ---------- ---------- ---------- ---------- ----------

Source: Korea Customs Service

Product Weight Equivalent (HS 0203)

**Korea: Swine Slaughter Trend**

(Heads slaughtered)

  ----------------- ----------------- ----------------- -----------------
  Month             2003              2004              2005

  January           1,396,954         1,242,284         1,204,480

  February          1,177,307         1,169,628         1,021,101

  March             1,277,202         1,293,279         1,206,810

  April             1,287,346         1,254,620         1,150,498

  May               1,224,233         1,157,302         1,060,529

  June              1,146,264         1,119,480         1,025,568

  July              1,192,283         1,122,453         

  August            1,233,340         1,124,036         

  September         1,214,569         1,135,975         

  October           1,412,825         1,347,396         

  November          1,273,525         1,347,639         

  December          1,450,768         1,306,154         

  TOTAL             15,286,616        14,620,246        
  ----------------- ----------------- ----------------- -----------------

Ministry of Agriculture & Forestry

**Korea: Live Swine Prices**

(Won per head, Exchange rate is US\$1=1,030 won)

  -------------- -------------- -------------- -------------- --------------
  Annual Live                                                 
  Swine Prices                                                

  Year           Piglet                        Swine (100 Kg) 

  1995           49,000                        155,000        

  1996           48,000                        171,000        

  1997           53,000                        171,000        

  1998           50,000                        179,000        

  1999           59,000                        199,000        

  2000           54,000                        166,000        

  2001           55,000                        174,000        

  2002           59,000                        178,000        

  2003           53,000                        164,000        

  2004           64,000                        235,000        

  Monthly Live                                                
  Swine Prices                                                

  Month / Year   Piglet                        Swine (100 Kg) 

                 2004           2005           2004           2005

  January        57,000         68,000         189,000        258,000

  February       61,000         87,000         214,000        261,000

  March          65,000         93,000         228,000        254,000

  April          66,000         94,000         234,000        247,000

  May            68,000         94,000         252,000        269,000

  June           68,000         100,000        261,000        294,000

  July           67,000         100,000        259,000        277,000

  August         65,000                        265,000        

  September      64,000                        249,000        

  October        62,000                        196,000        

  November       62,000                        216,000        

  December       65,000                        251,000        
  -------------- -------------- -------------- -------------- --------------

Source: Ministry of Agriculture & Forestry

National Agricultural Cooperatives Federation

**Korea: Swine/Pork Tariff Table for CY2005**

+-------------+----------------------+---------+--------+-------------+
| Tariff      | Product Description  | WTO     | C      | Other       |
| Number      |                      | Bound   | urrent | Information |
|             |                      | Rate    | A      |             |
|             |                      |         | pplied |             |
|             |                      |         | Rate   |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Pure-bred breeding   | N: 0    | N: 0   | In-quota    |
| 103.10.0000 | swine                |         |        | amount is   |
|             |                      | M:      | M:     | 1,850       |
|             |                      | 18.0%   | 18.0%  | heads.      |
+-------------+----------------------+---------+--------+-------------+
| 0           | Other swine          |         |        |             |
| 103.90.0000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Weighing, less than  | 18.0%   | 18.0%  |             |
| 103.91.0000 | 50 Kg.               |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Weighing, 50 Kg. or  | 18.0%   | 18.0%  |             |
| 103.92.0000 | more                 |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Pork (Fresh or       |         |        |             |
| 203.10.0000 | chilled)             |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Carcass and          | 22.5%   | 22.5%  |             |
| 203.11.0000 | half-carcass         |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Hams, shoulder and   | 22.5%   | 22.5%  |             |
| 203.12.0000 | cuts, with bone-in   |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Belly                | 22.5%   | 22.5%  |             |
| 203.19.1000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Others               | 22.5%   | 22.5%  |             |
| 203.19.9000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Pork (Frozen)        |         |        |             |
| 203.20.0000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Carcass and          | 25.0%   | 25.0%  |             |
| 203.21.0000 | half-carcass         |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Hams, shoulder and   | 25.0%   | 25.0%  |             |
| 203.22.0000 | cuts, with bone-in   |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Belly                | 25.0%   | 25.0%  |             |
| 203.29.1000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Others               | 25.0%   | 25.0%  |             |
| 203.29.9000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Pork offal (Fresh or | 18.0%   | 18.0%  |             |
| 206.30.0000 | chilled)             |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Pork offal (Frozen)  |         |        |             |
| 206.40.0000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Liver                | 18.0%   | 18.0%  |             |
| 206.41.0000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Feet                 | 18.0%   | 18.0%  |             |
| 206.49.1000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Others               | 18.0%   | 18.0%  |             |
| 206.49.9000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Other offal (Fresh   | 18.0%   | 18.0%  |             |
| 206.80.0000 | /chilled)            |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Other offal (Frozen) | 18.0%   | 18.0%  |             |
| 206.90.0000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Meat & edible meat   |         |        |             |
| 210.10.0000 | offal of swine,      |         |        |             |
|             | salted, in brine,    |         |        |             |
|             | dried or smoked;     |         |        |             |
|             | edible flours and    |         |        |             |
|             | meals of meat or     |         |        |             |
|             | meat offal of swine  |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Hams, shoulders and  | 25.0%   | 25.0%  |             |
| 210.11.0000 | cuts thereof, with   |         |        |             |
|             | bone-in              |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Bellies (streaky)    | 31.5%   | 31.5%  |             |
| 210.12.0000 | and cuts thereof     |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 0           | Other                | 25.0%   | 25.0%  |             |
| 210.19.0000 |                      |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 1           | Other prepared or    |         |        |             |
| 602.40.0000 | preserved meat, meat |         |        |             |
|             | offal or blood, of   |         |        |             |
|             | swine                |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 1           | Hams and cuts        | 54.0%   | 54.0%  |             |
| 602.41.1000 | thereof in airtight  |         |        |             |
|             | containers           |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 1           | Hams and cuts        | 27.0%   | 27.0%  |             |
| 602.41.9000 | thereof, other       |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 1           | Shoulders and cuts   | 54.0%   | 54.0%  |             |
| 602.42.1000 | thereof in airtight  |         |        |             |
|             | containers           |         |        |             |
+-------------+----------------------+---------+--------+-------------+
| 1           | Shoulders and cuts   | 27.0%   | 27.0%  |             |
| 602.42.9000 | thereof, other       |         |        |             |
+-------------+----------------------+---------+--------+-------------+

Source: Korea Customs and Trade Institute

N: in-quota rate; M: out-of-quota rate.