Despite Middle East War, K-Food Thrives... Exports to Middle East Up 37.6%

K-Food Exports Up 4.7% in January-April This Year

Ministry Eases Logistics Burden with Additional Support Through Export Vouchers

Despite the ongoing war between the United States and Iran, exports of K-food to the Middle East have increased significantly. On May 21, the Ministry of Agriculture, Food and Rural Affairs announced that the export value of K-food from January to April this year reached USD 3.58 billion, up 4.7% from the same period last year.

Among processed foods, ramen (USD 620 million), confectionery (USD 270 million), beverages (USD 240 million), and processed rice products (USD 100 million) led the strong export performance. For fresh foods, strawberries (USD 57 million), grapes (USD 18 million), and pears (USD 8 million) were notable contributors.

By country, strong growth rates were recorded not only in major markets such as the United States (8.9%) and China (15.5%), but also in promising new markets like the European Union (EU, 8.7%) and Central and South America (13.6%). In particular, despite disruptions to maritime logistics and rising freight charges due to the recent Middle East conflict, exports to the Middle East (GCC) region reached USD 160 million, up 37.6% year-on-year.

A representative from the Ministry of Agriculture, Food and Rural Affairs stated, "After the outbreak of the Middle East war, the ministry expanded its external expert pool for the 'K-Food One-Stop Export Support Hub' in areas such as the Middle East, transportation and logistics, and foreign exchange and currency risk management, increasing the number from 33 to 53 specialists." The official added, "Through close communication with local buyers via the Korea Agro-Fisheries & Food Trade Corporation (aT) Dubai office and collaboration with the domestic logistics sector, we have been providing weekly updates on maritime, inland, and air logistics trends through the KATI (K-AgriFood Export Information) website and social media."

According to the Ministry, Jaeda, a company planning to export rice to Saudi Arabia, was initially notified that refrigerated containers could not enter its designated unloading port, making information on alternative routes critical. In response, the Ministry, along with the aT Dubai office and logistics and legal experts, provided information on ports that could accept shipments and the transport stability of each port. Jaeda expressed gratitude, saying it was able to successfully coordinate its export schedule with local buyers based on accurate information.

Additionally, the Ministry recently selected 211 companies for its supplementary K-food export voucher program (KRW 7.2 billion) in response to challenges faced by exporters due to the Middle East conflict. The main priority for selection was given to companies with export performance to the Middle East or via the Middle East. Depending on factors such as direct or transit exports to the Middle East, fresh food export records, and whether the company was newly supported, up to KRW 150 million in funding was allocated to each company.

Furthermore, more than 50% of the support program's budget was earmarked for logistics to address losses and challenges faced by the export industry as a result of the Middle East conflict. The scope of logistics support was expanded to cover risk surcharges, alternative route freight charges, cargo demurrage fees, and collection/return fees. The Ministry also plans to provide retroactive assistance for costs incurred since March, immediately after the conflict began.

Jung Kyungseok, Food Industry Policy Director at the Ministry of Agriculture, Food and Rural Affairs, stated, "The reason K-food exports have performed well even amid crises like the Middle East conflict is due to the combined efforts of exporters and government support. We will continue to bolster the efforts of our exporters by expediting the supplementary budget execution so that K-food can continue to make history even in times of crisis."

This content was produced with the assistance of AI translation services.