The Chinese Kimchi Surge: The Way South Korea's National Dish Faces a Price War Domestically.
The sharp scent of spicy pepper flakes permeates the air at a kimchi factory in Incheon. Inside, brined napa cabbage rests in sizeable industrial containers during the first phase of a traditional procedure.
"Kimchi has become a global dish originating in Korea, but this makes no sense," says one producer. "This market has been seized."
The challenge stems from a increasing trade imbalance. South Korea imports a greater volume of kimchi than it exports, with lower-cost Chinese-made products gaining a foothold in the local market.
A Costly Difference
Chinese kimchi sells to restaurants at about 1,700 won per kilogram. Conversely, domestically produced kimchi cost roughly 3,600 won per kilogram—over twice the price.
In the first ten months of the year, the value of imports totaled $159 million, almost entirely from China, while overseas sales amounted to $137 million.
A Cornerstone of Culture
Kimchi is a staple of food culture on the Korean peninsula. The term encompasses far more than the fiery napa cabbage best known by global audiences.
- There are more than 150 known varieties, made with daikon, cucumbers, scallions and other vegetables.
- They are seasoned with blends of pepper flakes, garlic, ginger and jeotgal.
- The natural fermentation produces beneficial probiotics, contributing to its status as a health food.
Shifting Habits
Historically, families prepared large quantities together during kimjang, a tradition recognised by UNESCO. However, consumption patterns are changing.
Single-person households have more than tripled since 2000, now accounting for more than 36% of all households. As a result, a declining number prepare it domestically.
Nowadays, it is more often eaten ready-made or while eating out, where it is provided complimentary with every meal. Asking payment for such a staple would be inconceivable.
A Difficult Business
"If you manage to break even and don’t go bankrupt, that’s already fortunate," says one manufacturer. "For many of us over the past decade, we could not afford to upgrade in facilities."
‘A Food That Contains Our Soul’
Economic realities mean that price, rather than origin or method, is now the primary consideration.
One producer who has run a business for 29 years abandoned plans for expansion years ago as foreign kimchi gained ground. "Is it right to use imported kimchi when this is a food that contains our people’s soul?" he says. "It's deeply saddening."
Additional Challenges
The pressures are compounded by the changing climate, which is disrupting cabbage farming. Summer cultivation has become increasingly difficult in usual mountainous regions, causing market prices to sometimes more than double from one year to the next.
Authorities and producers are developing hardier cabbage types and improved storage systems, but industry groups doubt whether such measures can counteract the pressures.
Approximately three-quarters of the nation's kimchi manufacturers are micro-businesses with four or fewer employees, using handcrafted techniques that find it hard to compete with industrial-scale production in China.
Finding a Way Forward
The sector is trying to respond, though with few options.
- A subsidy program offers restaurants a financial incentive to return to using domestically produced kimchi.
- There are petitions for stricter checks of declared import prices for kimchi.
- Government initiatives include origin labeling programs for restaurants, farm aid for cabbage growers, and studies to extend kimchi’s storage time for export.
The Final Defense
Ultimately, many believe that superior quality remains South Korea’s best asset.
"Korean kimchi has a unique taste," states an association head. "That cannot be replicated."