Soaring rice prices in Japan have triggered a wave of panic buying this year -- a stark contrast to Korea, where oversupply is expected. While this gap has created a "win-win" opportunity for exports, Korean rice still faces significant hurdles, including high tariff barriers.
During a policy briefing from the Ministry of Agriculture, Food and Rural Affairs on Dec. 11, President Lee Jae Myung commented on the matter, saying, "Korea is dealing with a rice surplus. Why not export to Japan?"
Korea's rice exports to Japan from January through November this year reached a record $1 million, marking a 1,600 percent increase from $58,000 at the end of last year, according to the Korea Agro-Fisheries & Food Trade Corporation. It is the first time since exports began in March 2000 that the annual value has surpassed the $1 million mark.
The National Agricultural Cooperative Federation, or Nonghyup, said that following a two-ton shipment to Japan by Okcheon Nonghyup in Haenam, South Jeolla, in April, export contracts in the first half of the year alone totaled around 800 tons.
Historically, Korea's rice exports to Japan have remained low due to steep tariffs. Japan imposes a high duty of 341 yen per kilogram (90 cents per pound) on imported rice, except for imports under low-tariff quota agreements, to protect its domestic rice farmers.
However, with Japanese rice prices soaring, even tariffed Korean rice has become relatively affordable.
"Korea and Japan both primarily consume short-grain Japonica rice with a sticky texture, so Korean rice is a preferred alternative when local supply is tight," said a Nonghyup representative.
Japan's rice prices remain on an upward trajectory. The average price of a five-kilogram (11-pound) bag of rice at supermarkets nationwide reached a record 4,316 yen during the week of Nov. 3 to 9 this year -- the highest since data collection began in 2022 and up 1.9 percent from the previous week, according to Japan's Ministry of Agriculture, Forestry and Fisheries.
The price has more than doubled over the past year, rising from 2,088 yen in April 2024 to 4,220 yen in April of this year.
Although government rice reserves helped reduce prices by 10 to 20 percent in the latter half of this year, prices began climbing again in October.
Still, concerns are mounting that Korea's rice export boom may be short-lived -- a temporary gain from Japan's supply shortage. As long as Japan's high tariff remains, any stabilization in domestic rice prices there could swiftly undermine Korea's competitiveness.
In fact, Korea's rice exports to Japan fell sharply in the second half of the year, from 416 tons between January and June to 197 tons between July and November, mirroring a slight decline in Japanese rice prices.
Japan's agriculture ministry forecasts a 10 percent on-year increase in total rice production in 2025, reaching 7.47 million tons -- up 680,000 tons from 6.79 million tons in 2024. With supply outpacing demand, prices are expected to fall.
Meanwhile, Korea's domestic rice prices are rising, reducing the incentive for farmers to export. With local prices relatively high, exporters see little reason to take on the risks of entering the Japanese market.
The nationwide average retail price of rice stood at 3,120 won per kilogram (96 cents per pound) as of Friday -- a 14.1 percent increase from a year earlier, according to the agricultural price portal of the Korean trade corporation.
Still, Seoul's Agriculture Ministry sees an opportunity to use the current momentum for promotional gains, even if exports cannot be expanded significantly in the short term.
The ministry plans to promote Korean rice to Japanese tourists and consumers. Since Dec. 12, a pop-up store promoting the product has been operating at Gimpo International Airport.
"Beyond Japan, we will gradually support expanded exports through local market research and overseas marketing in countries with strong K-food demand, such as Singapore, Hong Kong and Taiwan," a trade corporation spokesperson said.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KYUNG-HEE [[email protected]]