Yoon Young-mi, chairman of the Korea Imports Association, said in a interview with Maeil Business Newspaper on the 22nd, "As can be seen from the recent NAFTA shortage triggered by the U.S.-Iran war, the importance of securing stable supply chains has grown," adding, "We will help Korean companies find reliable alternative sources without relying on specific countries."
Chairman Yoon cited wheat and beef as items that need to be expanded in terms of supply chain diversification and price stability. This is because Korea relies on the United States, Canada, and Australia for more than 90% of its edible wheat imports, which have high production costs.
"Countries such as Turkiye and Kazakhstan are also major wheat exporters and have continuously requested Korea to increase imports," Chairman Yoon said. "Importing edible wheat from here will not only lower domestic flour prices but also contribute to resolving trade tensions."
Chairman Yoon, who is also the head of the Highland Food Group, a meat import and processing company, said, "It is inevitable that beef retail prices will skyrocket due to high exchange rates and tariffs ahead of Chuseok," adding, "Emergency allocation tariff measures are urgently needed in the second half of this year." The allocation tariff refers to the application of a low tariff rate to a certain volume temporarily.
Currently, the U.S. and Australia are more than 90% dependent on the imported beef market, and Chairman Yoon predicts that the U.S. dollar-denominated price has risen more than 10% year-on-year due to the drought, and relatively cheap Australian beef will run out of free trade (FTA) quotas at the end of July.
When the quota is exhausted, the tariff rate on Australian beef will rise from the current 5.3 percent to 24 percent. According to Highland Food Group, the import price per kilogram of Chuck Eye Roll was $12.7 (about 18,800 won) from the United States and $9.4 (about 14,000 won) from Australia, up 20-30% from last year. The Korea Imports Association recently delivered this to the government as well.
He also added that large manufacturers and large franchises that make ham and sausage themselves are currently recommended for allocation tariffs due to concerns over corner sales and opaque margin acquisition, and professional importers should also be included in order to properly deliver the effect to the lower neck.
Meanwhile, the European Union (EU) will participate in this year's Korea Import Expo as the guest of honor. Fourteen EU countries will form a joint hall to display premium food and beverage, eco-friendly agricultural products, and household consumer goods. Chairman Yoon said, "We will be able to see various proven products such as Italian olive oil, Spanish orange juice, and German machinery in one place. We expect to expand opportunities for new business cooperation with European companies."
[Reporter Seo Jungwon / Photographer Han Joo-hyung]
