Korean Government Implements 0% Tariff-Rate Quota on Norwegian Mackerel

The Korean government has introduced a significant measure to stabilize seafood prices by applying a 0% tariff-rate quota on Norwegian mackerel. This initiative aims to alleviate the financial burden on households, particularly as the cost of imported mackerel has surged in recent months. The temporary quota, which will encompass 10,000 tons of this popular fish, will be in effect until the end of the year, starting from July 1st.

Background of the Quota Decision

The decision comes in light of rising prices, driven by several factors, including decreased catches and climbing international costs of raw materials. The Ministry of Economy and Finance, along with other relevant agencies, has recognized the need for swift action to mitigate the impact of these price increases on consumers.

Details of the Tariff-Rate Quota

By reducing the existing base tariff rate from 10% to 0%, this quota is expected to significantly lower import unit prices for Norwegian mackerel. Government officials have expressed hope that these changes will contribute positively to domestic consumer prices, which have been experiencing upward pressure amid broader economic challenges influenced by rising oil and raw material prices.

Impact on Consumer Prices

A government spokesperson stated, “We anticipate that the application of this tariff-rate quota will lead to a decrease in import unit prices, thereby stabilizing domestic consumer prices.” They emphasized that the government remains committed to finding ways to ease household food expenses while supporting a stable supply of mackerel.

Future Outlook and Market Analysis

The government’s revised enforcement decree for the tariff-rate quota is set to be finalized in a Cabinet meeting scheduled for June 24th. Officials believe that this initiative will positively influence price stabilization in the domestic seafood market, allowing consumers to purchase mackerel at more reasonable rates.

Current Market Prices for Mackerel

As it stands, wholesale prices for 20kg packages of frozen Norwegian mackerel are approximately 96,000 won for the 300/500-gram size and 97,000 won for the 400/600-gram size. Notably, these figures represent an increase of 26.3% and 25.9%, respectively, compared to June 2024.

Source: Union Forsea Corp.