Onion Price Drops in South Korea Amid Government Imports
Seoul, Monday, 2 June 2025.
In South Korea, onion prices fell to 613 won/kg due to increased imports, prompting growers to demand a price guarantee of 750 won/kg as they face potential financial losses.
Impact of Imports on Local Markets
The importation of onions in South Korea has dramatically impacted the local market, causing concern among farmers and producers. In recent months, the South Korean government implemented a policy allowing imports to stabilize the domestic supply, resulting in a wholesale price drop to 613 won per kilogram. This price reduction is significant when compared to the 750 won per kilogram demanded by local onion producers to cover their production costs and secure a reasonable profit margin. The rapid influx of imported onions, combined with higher-than-expected local yields due to favorable growing conditions earlier in the year, has exacerbated the price drop [1][3].
Producers’ Response to Price Decline
In response to the falling prices, the National Onion Producers Association held a press conference on May 28, 2025, near the Ministry of Agriculture, Food and Rural Affairs in Sejong City. They highlighted the urgent need for government intervention to guarantee a minimum price of 750 won per kilogram, which they argue is essential to cover production costs, excluding distribution expenses, set within government guidelines. The producers emphasize that without this guaranteed floor price, many farmers could face severe financial difficulties [1].
Government Measures and Potential Solutions
The government has introduced several measures intended to stabilize prices, including plans to stockpile 30,000 tons of onions and delay the release of 3,000 tons through agricultural cooperatives. Additionally, lower quality onions would be market-isolated with a subsidy of 4,000 tons. Despite these efforts, prices at Seoul’s Garak Market remain stagnant, showing an average price of 598 won per kilogram as of May 29. This suggests that further interventions, possibly involving the destruction of excess stock to further reduce supply, may be necessary to influence a price recovery [2][4].
Future Prospects and Calls for Action
Farmers and associations continue to lobby for stronger government action beyond the measures already implemented. The establishment of a regular consultation body involving producers, distributors, and the government has been proposed. Such a platform could facilitate ongoing discussions about supply management and help prevent future crises similar to the current one. Producers worry that any additional delays in governmental response could amplify their economic woes, emphasizing the need for immediate and tangible policy shifts to ensure stability in the agricultural sector [1][2].