KOREAN GOVERNMENT DECIDES TO APPLY 0% TARIFF-RATE QUOTA TO NORWEGIAN MACKEREL TO STABILISE PRICES

Korean Government decides to apply 0% tariff-rate quota to Norwegian mackerel to stabilise prices.10,000-ton quota, temporary application until year-end… expectation of easing burden on household food expenses.

The Korean government has decided to apply a 0% tariff-rate quota to Norwegian mackerel to alleviate the burden on household food expenses due to the recent surge in imported mackerel prices. This is part of a government-wide measure to stabilise prices and will take effect on July 1st.

According to the Ministry of Economy and Finance and other related agencies, the government will temporarily apply a 0% tariff-rate quota to 10,000 tons of Norwegian mackerel until the end of the year, reducing the existing base tariff rate of 10% to 0%. This measure comes as the overall pressure on price increases intensifies due to recent rises in international oil prices and raw material costs, making it urgent to stabilise the prices of frequently consumed seafood.

Recently, the import unit price of Norwegian mackerel has been steadily increasing due to factors such as decreased catches and rising international prices. Consequently, domestic consumer prices have also been under pressure to increase, and the government has taken swift action to minimise the impact of this situation on household economies.

A government official stated:

“We expect that this application of a tariff-rate quota to Norwegian mackerel will lead to a decrease in import unit prices, which will in turn stabilise domestic consumer prices.” They also added, “We will continue to make various efforts to ease the burden on household food expenses and support the stable supply of mackerel.”

The revised enforcement decree for this tariff-rate quota application is scheduled to be finalised at the Cabinet meeting on June 24th. The government anticipates that this measure will positively impact the price stabilisation of the domestic seafood market and enable consumers to purchase mackerel at reasonable prices.

Reference: In the domestic wholesale market, the prices for 20kg packages of frozen Norwegian mackerel are around 96,000 won for the 300/500-gram size and 97,000 won for the 400/600-gram size. Compared to June 2024, these prices have increased by 26.3% for the 300/500-gram size and 25.9% for the 400/600-gram size.

Source : Union Forsea Corp.