Kimchi, Made in China: How South Korea's Iconic Food Faces a Price War at Home.
The distinct aroma of red chilli powder fills the air at a production facility in Incheon. Within, salted cabbage soaks in sizeable industrial containers during the initial phase of a traditional procedure.
"It's now considered a world food from Korea, but this situation is absurd," notes a factory owner. "This market has been seized."
The difficulty originates from a widening import-export gap. South Korea brings in more kimchi than it exports, with more affordable Chinese-made products gaining a foothold in the local market.
A Costly Difference
Chinese kimchi sells to restaurants at around 1,700 won per kilogram. Conversely, domestically produced kimchi are priced at roughly 3,600 won per kilogram—more than double the price.
In the first ten months of the year, the value of imports reached $159 million, almost entirely from China, while overseas sales were valued at $137 million.
A Cornerstone of Culture
Kimchi is a fundamental part of food culture on the Korean peninsula. Its definition encompasses far more than the fiery napa cabbage most familiar to international diners.
- There are more than 150 known types, made with daikon, cucumbers, scallions and other vegetables.
- They are seasoned with blends of chilli powder, garlic, ginger and jeotgal.
- The fermentation process produces beneficial probiotics, contributing to its status as a health food.
Shifting Habits
Historically, families made large quantities together during the annual kimjang ritual, a practice designated 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 prepare it domestically.
Instead, 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 avoid losses and stay afloat, that’s considered lucky," comments a producer. "In our industry over the past decade, we haven’t been able to invest in facilities."
‘A Food That Contains Our Soul’
Market forces mean that cost, rather than provenance or method, is now the primary consideration.
One factory owner who has run a facility for 29 years abandoned plans for expansion years ago as foreign kimchi became popular. "Should we really be using imported kimchi when this is a food that embodies our heritage?" he says. "It’s truly heartbreaking."
Additional Challenges
These difficulties are exacerbated by the changing climate, which is affecting cabbage farming. Growing in summer has become increasingly difficult in usual highland growing areas, causing market prices to sometimes more than double from one year to the next.
Government agencies and producers are working on hardier cabbage types and improved storage systems, but industry groups question whether such measures can offset the economic pressures.
Approximately three-quarters of South Korea’s kimchi manufacturers are very small enterprises with four or fewer employees, using handcrafted techniques that struggle 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 switch back to Korean-made kimchi.
- There are calls for increased scrutiny of customs valuations for kimchi.
- Government measures include origin labeling programs for restaurants, farm aid for cabbage growers, and studies to lengthen kimchi’s storage time for export.
The Final Defense
In the end, many are convinced that quality remains the local industry's best asset.
"Our kimchi has a distinct flavor," says an expert. "That cannot be replicated."