The Chinese Kimchi Surge: The Way South Korea's National Dish Is Being Priced Out Domestically.
The sharp scent of spicy pepper flakes fills the air at a kimchi factory in a city near Seoul. Inside, brined napa cabbage rests in sizeable industrial containers during the primary stage of a time-honored process.
"It's now considered a global dish originating in Korea, but this situation is absurd," notes a factory owner. "This market has been seized."
The challenge originates from a growing trade imbalance. South Korea imports a greater volume of kimchi than it sends abroad, with more affordable Chinese-produced products taking hold in the domestic market.
The Price Disparity
Chinese kimchi sells to restaurants at approximately 1,700 won per kilogram. However, Korean-made versions cost roughly 3,600 won per kilogram—over twice the price.
From January to October this year, the value of imports totaled $159 million, predominantly from China, while overseas sales were valued at $137 million.
More Than Just Cabbage
Kimchi is a staple of culinary tradition on the peninsula. The term encompasses much more than the spicy cabbage best known by international diners.
- There are over 150 known varieties, made with radish, cucumber, spring onions and other vegetables.
- They are seasoned with mixtures of chilli powder, garlic, ginger and jeotgal.
- The fermentation process produces beneficial lactic acid bacteria, bolstering its reputation as a nutritious food.
Shifting Habits
Historically, families prepared large quantities together during kimjang, a tradition recognised by UNESCO. Yet, how Koreans consume kimchi are evolving.
One-person homes have increased dramatically since 2000, now representing more than 36% of all households. Consequently, fewer people make kimchi at home.
Nowadays, it is increasingly consumed pre-packaged or while eating out, where it is served free of charge with every meal. Charging for such a staple would be unthinkable.
A Difficult Business
"If you avoid losses and don’t go bankrupt, that’s already fortunate," comments a producer. "In our industry over the past decade, we could not afford to upgrade in equipment."
‘A Food That Contains Our Soul’
Economic realities mean that price, rather than provenance or method, is now the decisive factor.
One producer who has operated a facility 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 embodies our heritage?" he says. "It's deeply saddening."
Additional Challenges
The pressures are exacerbated by the changing climate, which is affecting napa cabbage agriculture. Growing in summer has become increasingly difficult in usual highland growing areas, causing wholesale cabbage prices to sharply increase from one year to the next.
Government agencies and producers are developing climate-resistant varieties and better storage, but trade associations question whether such measures can offset the pressures.
Around three-quarters of South Korea’s kimchi manufacturers are micro-businesses with four or fewer employees, using handcrafted techniques that struggle to compete with large-scale production in China.
Finding a Way Forward
The industry is trying to respond, though with limited tools.
- A subsidy program offers restaurants a financial incentive to return to using domestically produced kimchi.
- There are calls for increased scrutiny of declared import prices for kimchi.
- Government measures include voluntary labelling schemes for restaurants, farm aid for cabbage growers, and studies to lengthen kimchi’s storage time for export.
A Matter of Taste
In the end, many are convinced that superior quality remains South Korea’s strongest defence.
"Korean kimchi has a distinct flavor," says an expert. "It is impossible to copy."