Analysis of the Impact of South Korea's 17.5% Agricultural Export Growth Target on the Regional Competitive Landscape

Based on the latest data and market information I have collected, I will provide you with a systematic analysis of the impact of South Korea’s agricultural export growth target on the regional competitive landscape.

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According to the 2026 export target set by the Ministry of Agriculture, Food and Rural Affairs of South Korea, the export value of food and agriculture-related products will reach

, a 17.5% increase from USD 13.62 billion in 2025, which is expected to hit a new all-time high again [1]. This target reflects the South Korean government’s policy orientation of actively promoting agricultural exports. Its Minister Song Meiling stated that the “K-Food+” strategy (covering related industries such as agricultural machinery and veterinary drugs) achieved remarkable results last year.

From the perspective of export structure, the export value of South Korea’s agricultural and aquatic products has

, and cosmetics exports have also hit a historical peak of USD 11.4 billion [2]. This indicates that South Korea is deeply integrating its cultural soft power (Hallyu) with its agricultural product export strategy.

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Notably, South Korea’s foreign trade landscape is undergoing

. According to the latest data, South Korea’s export share to China in total exports has dropped from , and its export share to the U.S. has declined from —marking the first time since 2017 that the export shares to both China and the U.S. have fallen simultaneously [2].

Meanwhile, South Korea’s exports to

, and its share in total exports rose from 16.7% in 2024 to 17.3% [2]. Exports to the EU reached USD 70.1 billion, a year-on-year increase of 3%. This diversification strategy means that South Korea’s agricultural food exports are expanding to emerging markets such as , which may lead to more direct competition with Chinese export enterprises.

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South Korea’s kimchi industry is facing

. According to reports, the value of kimchi South Korea imports from China has exceeded its kimchi exports for several consecutive years, and the gap is widening [3]. In the first 10 months of this year, South Korea’s kimchi imports reached USD 159 million (almost entirely from China), while its kimchi exports during the same period were USD 137 million [3].

The average price of domestically produced kimchi in South Korea is 3,600 won per kilogram (approximately NTD 76), which is

the price of Chinese-produced kimchi (1,700 won) [3]. This price gap has led South Korean restaurants to switch to purchasing Chinese kimchi to reduce costs. Kim Ji-eun, President of the Korea Kimchi Association, admitted: “This market has been taken from us” [3].

However, the South Korean government’s 17.5% growth target means it will

, and may regain market share through technological innovation, quality upgrading, and brand marketing, which will create competitive pressure on Chinese kimchi export enterprises.

Ginseng is another important export agricultural product of South Korea. South Korea uses AI technology to standardize the taste of kimchi and promote the industrial production of traditional fermented foods [4]. This trend of technological upgrading may extend to the fields of ginseng and other functional foods, leading to technological competition with relevant Chinese enterprises.

South Korea is actively expanding exports of

. South Korean strawberries enjoy a reputation in the Asian market for their high quality and unique varieties. If South Korea increases export promotion for such products, it will compete with Chinese fresh agricultural product export enterprises.

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Impact Dimension	Specific Performance
Price Competition	South Korea’s 17.5% growth target means it needs to expand its market share, which may intensify price competition with China
Market Overlap	The rapid growth (7.4%) of South Korea’s exports to ASEAN will directly compete with China’s exports in this region
Category Overlap	Direct competition exists in categories such as kimchi, ginseng, and condiments

Under the framework of the Regional Comprehensive Economic Partnership (RCEP), China and ASEAN have completed the negotiations for the 3.0 version of the free trade area, adding content such as the digital economy, green economy, and supply chain connectivity [5]. This regional cooperation mechanism not only provides Chinese agricultural food enterprises with opportunities to

, but also means that South Korea may further penetrate the Southeast Asian market through the RCEP platform.

According to the latest data, China’s agricultural exports to the Asia-Pacific region have grown from

, covering 224 countries and regions. Categories such as food, vegetables, fruits, animal husbandry products, and beverages account for 57.3% of the total export value [6]. This shows that China’s agricultural exports have a strong , and a certain ability to withstand pressure.

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Chinese agricultural food export enterprises should

to avoid direct price competition with South Korea in standardized products. They can establish differentiated advantages by developing geographical indication products, organic certified products, and characteristic varieties.

The diversification trend of South Korea’s export landscape indicates that

will become the key to competition. Chinese enterprises should leverage their scale advantages and RCEP rules of origin to optimize the layout of regional supply chains.

In view of South Korea’s increased efforts to explore markets such as ASEAN and Europe, Chinese enterprises may consider expanding to markets where South Korea’s presence is relatively weak, such as

, to diversify competitive pressure.

South Korea is actively using new technologies such as AI to improve the quality standardization of traditional foods [4]. Chinese enterprises should

to maintain competitiveness in areas such as fermentation technology, preservation technology, and product innovation, while strengthening brand building to enhance product added value.

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South Korea’s 17.5% agricultural export growth target for 2026 will exert multi-dimensional competitive impacts on

. In traditional competitive categories such as kimchi and ginseng, South Korea may adopt more active strategies for quality upgrading and brand promotion; in emerging markets (ASEAN, the Middle East, Central and South America), the rapid growth of South Korea’s exports will directly squeeze the market share of Chinese enterprises.

However, China’s agricultural exports have

. Through differentiated competition, supply chain optimization, technological innovation, and emerging market exploration, China can still maintain strong competitiveness. Enterprises should closely monitor the trends of South Korea’s agricultural policies and changes in its export structure, and adjust their market strategies in a timely manner.

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[1] Sina Finance - South Korea Sets This Year’s Target of USD 16 Billion for Food and Agricultural Product Exports (https://finance.sina.com.cn/stock/usstock/c/2026-01-12/doc-inhfzukv4586476.shtml)

[2] KBS WORLD - Restructuring of South Korea’s Export Landscape: Reduced Dependence on the U.S. and China (https://world.kbs.co.kr/service/news_view.htm?lang=c&Seq_Code=88131)

[3] Taiwan Times - “National Soul” Cannot Compete with Low Prices: South Korea’s Kimchi Industry Faces Survival Crisis Amid Impacts from China (https://tw.news.yahoo.com/民族靈魂-難敵低價競爭-南韓泡菜產業遭中國衝擊陷生存危機-063024340.html)

[4] FFI Food Formula Innovation - South Korean Media: South Korea Uses AI to Standardize Kimchi Taste (http://www.ffifood.com/news/index/2)

[5] Economic Information Daily - China is Actively Promoting the Process of Asia-Pacific Economic Integration (https://www.jingjidaokan.com/icms/jingjidaokan/zh/ns:LHQ6MjYsZjo4MCxjOixwOixhOixtOg==/channel.vsml)

[6] Xinhua Finance/China.org.cn - Data on China’s Agricultural Exports to the Asia-Pacific Region (https://www.news.cn/food/20251230/ce92fbfb23ae445286d42ec6c087e31f_20251230f43f8918fc9c464d8f3e719ad82e0b2f.jpg)