KOREA’S EFFORTS FOR REGULATING THE
DISTRIBUTION OF ILLEGALLY LOGGED TIMBER

MIN, KYUNG-TAEK

Contents
1. Forestry
2. Wood Demand and Supply
3. Wood Industry
4. Wood Import
5. Survey on the Regulations
6. Efforts to tackle illegal logging

1. Forestry
Age Class Distribution of Forests
Age ClassTotalⅠ
Area
(ha)
Growing
Stock(1000㎥)

6,368,843

800,025

ⅡⅢ

ⅣⅥ

etc

160,110466,062

1,396,294

2,261,794

1,387,726

492,484

204,373(2.5%)(7.3%)(21.9%)(35.5%)(21.8%)(7.7%)(3.2%)-26,672

157,316306,880

218,074

91,083-(3.3%)(19.7%)(38.4%)(27.3%)(11.4%)

Source : Korea Forest Service▪ Forests cover 64% of the land
▪ Forest growing stock increased 12.6 times in 40 years▪ The unit growing stock is 125 m3/ha (2010).

3Ⅴ1. Forestry
Topography

Slope
50%

70%
53%

38%

35%

25%

18%

13%

0%
Plain

The foot of Mt.

The top of Mt.

0%
Mild slope
less than 15°

steep
20-25°

very steep
more than 30°▪ Most of the forestlands are distributed at the steep hillside, which is the cause ofhigh cost and low productivity of forestry in Korea.

41. Forestry
Tree Species

Age Class(1000 ha)(1000 ha)Oaks
NaturalPines

PlantedLarch
Pitch Pine
Korea Pine
Japanese
Cypress Chestnut
0~10

10~20

20~30

3~40

▪ Pines and Oak species are dominant▪ Pitch Pines were planted to cover the denuded mountains, but now being
converted to other economic species

540~5050~60

1. Forestry
Production of forest products
6,000

Billion KRWOthersStonesMedicinal Plants
Wild Vegetables
Mushrooms
FruitsOrnamental Treewood

4,500

3,000

1,50002007200820092010201120122013

2014▪ Wood production is low▪ Non-timber forest products are main income source to rural people.
62. Wood Demand and Supply
Trend of Wood Consumption(%)(1000 m3)
40,00030,00020,00010,000

0
2005

2006

2007

2008

2009

2010

2011

▪ high dependency of foreign sources▪ increasing self sufficiency because of government policy
7

2012

2013

2014

2. Wood Demand and Supply
Wood Demand and Supply by Use and Source(Unit: 1000 m3)

2010

2012

2013

2014

Domestic

3,715

4,210

4,506

4,897

5,179

Imported

23,89723,39823,31323,25425,826

27,612

27,60827,81928,151

31,005

Sawnwood

5,426

5,533

5,378

5,736

6,006

Plywood

2,953

2,782

2,805

3,015

3,148

Pulp chip

12,466

12,563

12,226

10,926

10,405

Board

3,310

3,201

3,153

3,066

3,646

Biomass

412

598

805

1,865

4,605

Others

3,045

2,931

3,452

3,543

3,195

Self sufficiency(%)

13.5

15.2

16.2

17.4

16.7

SupplyTotal

DemandSource : Korea Forest Service82011

2. Wood Demand and Supply
Domestic Wood Utilization Flow (2014)
8,763
Total Cutting Volume2,997 (34.2%)
Final Clearing or Species
ConversionSawnwood (16%)
Pulp(18%)

Board(31%)

408
Thinning for Profit
5,305
Used(60.5%)

Energy(19%)

Others(16%)

Unit: thousand m3

3,884 (44.3%)
Tendering
624
Damaged Tree

3,458
Not Used(39.5%)

683
Forest land Conversion
167
Others▪ A lot of wood material are processed for boards or pulp chips because domestic
wood has small-diameter▪ Increasing demand for energy by adoption of RPS.
9

3. Wood Industry
Wood Industry in National Economy
Unit: million KRW, persons
2000ㅤ

2013ㅤ

Intermediate input

1,594,163 ㅤ

2,977,781 ㅤ

Value added

594,150(0.10%)

812,368(0.06%)

Employment

17,067(0.10%)--

Intermediate input

895,867 ㅤ

Value added

340,237(0.06%)

Employment

21,850(0.13%)

Intermediate input

5,096,179 ㅤ

Value added

1,904,462(0.32%)

6,089,934(0.47%)

Employment

17,856(0.11%)

63,850(0.28%)

ㅤWood

ProcessedWood

ㅤPulp &Paper

2,320,177 ㅤ
688,626-ㅤ

(0.05%)-

17,834,626 ㅤ

Source : Input-Output Table, BOK▪ Wood industry contributed to 0.58% of total value-added and 0.47% ofemployment.
▪ Most of value-added are produced in paper industry.
10

3. Wood Industry
Production of Wood-Based Panels
m3
2,200,000

1,650,000

1,100,000

550,000

02000

2002

2004

2006

2008

2010

2012

2014

▪ Particleboard Manufacturers use recycled chip, by-products of wood industry,domestic pitch pine as raw material▪ MDF Manufacturers use domestic pitch pine, by-product of wood industry, etc.
11

4. Wood Import▪ Korea imports 85% of wood products consumption▪ decreasing in log, increasing in wood products▪ The fifth largest importer of plywood, the second largest importer of veneerImport of Wood Products
Thousand m3(Roundwood Equivalent)

18,00013,500chip
particle board
fiberboard
plywood & veneer
sawnwood
log

9,000

4,500

'- 02010
122011

2012

2013

2014

4. Wood Import
Import of Wood Products (HS 44)
ㅤ2010

2011

2012

2013

2014

2015

Total
New ZealandVietnam

7,397,068
2,244,212
668,125569,809
485,959
773,342399,367
382,765
235,580
189,852
588,055
295,412
13,74550,091
13,094
10,71340,314
15,630546
9,836
76,632
76,6382,612
25,393
15,47624,057
5,635
2,261
181,917

7,289,360
2,232,563
1,071,827
384,037
591,743
450,023
442,892
349,615
180,297
224,240
516,667
299,590
21,432
49,66827,322
11,996
31,54812,746
5,612
29,002
88,666
127,2443,515
29,78830,202
19,701
4,496
3,321
49,6077,230,949
2,162,576
1,205,234
272,980
595,531515,724
476,711417,079
170,636
223,773
427,937
158,873
32,38940,441
34,916
16,49339,011
27,9391,520
29,31387,851
152,710
6,121
25,041
15,28525,933
5,357
4,039
59,536

8,077,512
2,355,948
1,565,214
413,029
659,878
510,921442,871
383,179
220,700
276,709404,409
162,053
47,73345,75939,51824,04680,31642,235
4,514
33,81367,690133,279
20,29332,727
1,188
27,4402,058
3,628
76,3649,770,199
2,287,200
2,158,755
734,525
929,127
623,853684,876
342,787
299,125
381,915
371,243
229,438
98,07038,74550,96037,88986,791
41,31817,75636,156
67,28374,88732,997
24,245
230
24,025854
4,361
90,7889,549,333
2,453,700
2,311,816
680,705
633,439
577,319442,814
417,427
346,735
383,203232,222
201,584
126,284
34,79375,36842,86681,01349,75222,09027,037
68,202
169,898
31,09424,486659
18,116292
6,620
89,799 ㅤ

ThailandChina
Malaysia
CanadaRussiaIndonesia
Chile
U.S.
Australia
Japan
Solomon Is.
LatviaSwedenGermany
FinlandUkraineUruguay
P.N.G.
Rumania
Austria
BrazilSpain
Philippines
Miyanmar
Laos
Others13

Unit: tones
Share(2005)
53.6%
24.2%
7.1%
6.6%
6.0%
4.4%
3.6%

0.4%

0.7%

0.3%
0.2%
0.1%

4. Wood Import Source (2014)
Unit: thousand m3, thousand tones

Log

Sawnwood

2538.7

New Zealand
CanadaU.S.
P.N.G.
Australia
RussiaMalaysia
Solomon Is.
Others614

Veneer and Plywood
CanadaChile
RussiaChina
New Zealand
Malaysia
U.S.
Vietnam
LatviaOthers

595.1

476.2

Particle Board

Fiberboard
ThailandRomania
CanadaMalaysia
U.S.
Others868.7

1468.9China
MalayIndon
VietnaFinlanRussiaChile
OthersWood Chip

China
ThailandAustalia
Malaysia
Others1913.287

Vietn
RussMala
ThaiChin
IndoJapa
Cana
PhilliOthe

5. Survey on the Regulations▪ Survey subject: 209 wood company▪ Period: 2013. 9. 9 ~ 10. 20.

Perception of Regulation on Illegal logging
By Products

By Sales (billion KRW)

Total

Sawnwood

Plywood

Fiberboard

Particle
board

17.2

14.0

100.0

66.7

100.0

10.4

82.8
86.0
0.0
Don’ know
Source: Korea Rural Economic Institute

33.3

0.0

89.6

Know

0.3

0.3~1

1~3

3~

22.6

10.6

82.0

77.4

89.4

18.0

▪ The perceptions about illegal logging aren’t pervasive in Korea.
▪ Most of wood products manufacturers(91%) are supporting the regulation onillegal logging strongly.
▪ Some wood products exporters are required to take legality verification ininternational markets.
15

6. Efforts to tackle illegal logging
Forest logging permit system▪ Logging permit only for
1) The mature forest over the regulated harvesting age2) No more than 50 hectare for clear cutting3) The reforestation duty for the logging area
4) The blueprint and measured scale map for logging
PermitLoggerPerformance Reporting

Regional
Authority

Reporting throughComputing System

Management and supervision of the status of forest logging
Strict control measures for illegal logging
16

6. Efforts to tackle illegal logging
Act on the Sustainable Use of Timbers (2013)▪ Article 34 (Countermeasures against Illegally Felled Timber)
1) The State and local governments shall establish and implement measures
to prevent distribution or use of timber illegally cut inside or outside theRepublic of Korea.
2) The Minister of the Korea Forest Service shall, in cooperation with local
governments and agencies and organizations related to forest and thetimber industry, provide guidance and conduct publicity activities toprevent the distribution and use of illegally cut timber.
➔ An Enforcement Ordinance for this article is not made yet.

17

6. Efforts to tackle illegal logging
Korea-Indonesia Forestry Committee (2003)▪ Joint statement to support Indonesia’s effort to combat illegal logging➔ No any significant practical measure being taken

Korea-U.S. Environmental Cooperation Agreement (2012)▪ Development of joint initiatives to combat illegal logging and the transport andtrade, including transshipment, of illegally harvested timber and timber
products, as well as to combat the illegal trade in wildlife and wildlife parts

Korea Forest Service – APEC EGILAT (2015)▪ KFS took part in APEC EGILAT(Expert Group on Illegal Logging and AssociatedTrade), and proposed establishing Online Information System.

18

6. Efforts to tackle illegal logging
Chief of Korea Forest Service (2015)▪ Illegally logged wood should be prohibited in trade.
(http://www.hankyung.com/▪ Discussions to combat illegal logging with
U.S., EU, and Australia are still going on, but
not arrived at the significant practicalmeasures yet.

19

2015.9. 23)

6. Efforts to tackle illegal logging
Challenging Issue▪ Spread of awareness on illegal logging▪ Partnership with the wood producing countries▪ Amendment of national procurement system▪ Innovation in the technical system on log traceability

20

Thank you
Min, Kyung-taek
Senior Research Fellow
Korea Rural Economic Instituteminkt@krei.re.kr