Korea. Oils Annual. Mar 2015 April 9, 2015
Production:
As CJ Corporation, a leading Korean soybean crusher, returned to soybean crushing from canola seed crushing in the second half of 2013 due to narrow canola processing margin, MY 2013/14 soybean oil production reached 173,100 MT, up 10 percent over the previous marketing year. MY 2014/15 soybean oil production is expected to remain unchanged from the previous marketing year unless crushing margins between soybeans and rapeseed are overturned in its flexible crushing facilities. MY2015/16 soybean oil production is forecast to follow the current marketing year.
Consumption:
Soybean oil and palm oil account for 73 percent of the country's total oils supply in MY 2013/14. The majority of soybean oil is consumed in the HRI sector and home, and more recently in the biodiesel sector. Food processors and restaurants rely heavily on imported soybean oil while locally processed soybean oil is generally for home use. Palm oil is primarily used for food processing, especially ramen (instant noodle) production, since it is more functional and cheaper than soybean oil. Palm oil has been increasingly used in local biodiesel production.
Soybean oil consumption in MY 2015/16 is forecast at 460,000 MT, slightly increasing from the current marketing year's estimate because of stagnant demand for bio-diesel production as it is less cost effective than palm oil. Meanwhile, palm oil consumption during this period is forecast at 450,000 MT, up 5 percent from the current marketing year because of rising demand from the bio-diesel sector.
Trade:
The biodiesel sector has been the main driver behind rising edible oil imports since MY 2007/08. MY 2015/16 soybean oil imports are forecast at 300,000 MT, remaining unchanged from the current marketing year's estimate due to anticipation of a limited demand for biodiesel caused by less price competitiveness compared to palm oil. In MY 2014/15, soybean oil imports are stagnant at 300,000 MT, slightly increasing from the previous year. Soybean oil imported from South America, particularly Argentina, is much more price competitive than domestically produced soybean oil made from imported soybeans.
In MY 2015/16, palm oil imports are forecast to increase 3 percent to 450,000 MT mainly due to rising demand from the biodiesel industry as Korean government plans to implement revised regulations to raise mandatory rate to 2.5 percent from current 2 percent in the second half of 2016. Palm oil imports for biodiesel are expected to reach 230,000 MT, up 15 percent from the current marketing year estimate as it's more competitively priced than other oil-based feed stocks. Palm oil imports for use in the local soap industry are expected to remain steady at 20,000 MT. In MY 2014/15, palm oil imports are expected to increase to 420,000 MT to meet greater demand for biodiesel purpose than the previous year.
Palm oil has been imported duty free under Korea-ASEAN FTA since June 2007.
Under the KORUS FTA effective since March 15, 2012, Korea's 5.4 percent duty on imports of crude soybean oil is scheduled to be phased out in 10 equal annual reductions, while the 5.4 percent on refined soybean oil will be phased out in five equal annual reductions. Korea also eliminated the import duty on palm oil immediately under the KORUS FTA.
Soybean Oil PS&D
Oil, Soybean | 2013/2014 | 2014/2015 | 2015/2016 | |||
Market Begin Year | Oct 2013 | Oct 2014 | Oct 2015 | |||
Korea, South | USDA Official | New post | USDA Official | New post | USDA Official | New post |
Crush | 1,000 | 898 | 950 | 900 | 0 | 900 |
Extr. Rate, 999.9999 | 0 | |||||
Beginning Stocks | 27 | 27 | 17 | 32 | 0 | 35 |
Production | 178 | 173 | 152 | 173 | 0 | 173 |
MY Imports | 278 | 278 | 350 | 300 | 0 | 300 |
MY Imp. from U.S. | 0 | 0 | 35 | 50 | 0 | 50 |
MY Imp. from EU | 0 | 0 | 0 | 0 | 0 | 0 |
Total Supply | 483 | 478 | 519 | 505 | 0 | 508 |
MY Exports | 6 | 6 | 15 | 20 | 0 | 20 |
MY Exp. to EU | 0 | 0 | 0 | 0 | 0 | 0 |
Industrial Dom. Cons. | 90 | 40 | 95 | 40 | 0 | 40 |
Food Use Dom. Cons. | 370 | 400 | 385 | 410 | 0 | 420 |
Feed Waste Dom. Cons. | 0 | 0 | 0 | 0 | 0 | 0 |
Total Dom. Cons. | 460 | 440 | 480 | 450 | 0 | 460 |
Ending Stocks | 17 | 32 | 24 | 35 | 0 | 28 |
Total Distribution | 483 | 478 | 519 | 505 | 0 | 508 |
1000 MT, PERCENT |
Soybean Oil Import Trade Matrix
Import Trade Matrix | |||
Country | Korea, Republic of | ||
Commodity | Oil, Soybean | ||
Time Period | OCT/SEP | Units: | 1,000MT |
Imports for: | 2012 | 2013 | |
U.S. | 47 | U.S. | 0 |
Others | Others | ||
Argentina | 202 | Argentina | 200 |
Brazil | 0 | Brazil | 6 |
Vietnam | 32 | Vietnam | 63 |
Thailand | 13 | Thailand | 7 |
Total for Others | 247 | 276 | |
Others not Listed | 6 | 2 | |
Grand Total | 300 | 278 |
Source: Korea Customs Service (KCS)
Palm Oil PS&D
Oil, Palm | 2013/2014 | 2014/2015 | 2015/2016 | |||
Market Begin Year | Oct 2013 | Oct 2014 | Oct 2015 | |||
Korea, South | USDA Official | New post | USDA Official | New post | USDA Official | New post |
Area Planted | 0 | 0 | 0 | 0 | 0 | 0 |
Area Harvested | 0 | 0 | 0 | 0 | 0 | 0 |
Trees | 0 | 0 | 0 | 0 | 0 | 0 |
Beginning Stocks | 36 | 36 | 44 | 44 | 0 | 44 |
Production | 0 | 0 | 0 | 0 | 0 | 0 |
MY Imports | 403 | 403 | 400 | 420 | 0 | 450 |
MY Imp. from U.S. | 0 | 0 | 0 | 0 | 0 | 0 |
MY Imp. from EU | 0 | 0 | 0 | 0 | 0 | 0 |
Total Supply | 439 | 439 | 444 | 464 | 0 | 494 |
MY Exports | 0 | 0 | 0 | 0 | 0 | 0 |
MY Exp. to EU | 0 | 0 | 0 | 0 | 0 | 0 |
Industrial Dom. Cons. | 170 | 200 | 180 | 220 | 0 | 250 |
Food Use Dom. Cons. | 225 | 195 | 220 | 200 | 0 | 200 |
Feed Waste Dom. Cons. | 0 | 0 | 0 | 0 | 0 | 0 |
Total Dom. Cons. | 395 | 395 | 400 | 420 | 0 | 450 |
Ending Stocks | 44 | 44 | 44 | 44 | 0 | 44 |
Total Distribution | 439 | 439 | 444 | 464 | 0 | 494 |
1000 HA, 1000 TREES, 1000 MT |
Palm Oil Import Trade Matrix
Import Trade Matrix | |||
Country | Korea, Republic of | ||
Commodity | Oil, Palm | ||
Time Period | OCT/SEP | Units: | 1,000MT |
Imports for: | 2012 | 2013 | |
U.S. | 0 | U.S. | 0 |
Others | Others | ||
Malaysia | 317 | Malaysia | 255 |
Indonesia | 29 | Indonesia | 144 |
Total for Others | 346 | 399 | |
Others not Listed | 1 | 4 | |
Grand Total | 347 | 403 |
Source: Korea Customs Service (KCS)
Korea: Domestic Production of Vegetable Oils1/ (Metric Ton) | |||
Commodities | MY 2011/12 | MY 2012/13 | MY 2013/14 |
Soybean Oil | 150,100 | 150,000 | 173,100 |
Corn Oil | 45,609 | 41,132 | 45,558 |
Sesame Oil | 19,626 | 21,404 | 22,988 |
Rice Bran Oil | 10,000 | 10,000 | 10,000 |
Rapeseed Oil | 513 | 26,937 | 436 |
Perilla Seed Oil | 23,723 | 22,490 | 23,349 |
Total | 249,571 | 271,963 | 275,431 |
Source: Foreign Agriculture Service, Seoul, Korea
1/ FAS/Seoul estimates
Korea: Soybean Oil Production (Metric Ton) | |||
Month | MY 12/13 | MY 13/14 | MY 14/15 |
October | 12,000 | 14,300 | 15,000 |
November | 12,600 | 11,500 | 14,000 |
December | 14,000 | 13,300 | 14,500 |
January | 13,200 | 16,000 | Na |
February | 12,000 | 13,000 | Na |
March | 15,300 | 17,000 | Na |
April | 15,200 | 15,000 | Na |
May | 14,500 | 13,500 | Na |
June | 12,700 | 15,500 | Na |
July | 10,300 | 13,800 | Na |
August | 13,600 | 15,900 | Na |
September | 11,900 | 14,300 | Na |
Total | 157,300 | 173,100 | Na |
Extraction Rate | 19.48% | 19.28% | Na |
Source: Korea Soybean Processing Association (KSPA)
Korea: Total Supply of Edible Oils (Metric Ton) | |||
Commodity | MY 2011/12 | MY 2012/13 | MY 2013/14 |
Soybean Oil | 492,969 | 450,463 | 451,194 |
Palm Oil | 308,093 | 346,614 | 402,553 |
Corn Oil | 46,757 | 42,119 | 47,928 |
Rapeseed Oil | 103,432 | 103,272 | 88,350 |
Coconut Oil | 60,452 | 62,387 | 58,217 |
Olive Oil | 10,557 | 9,728 | 14,536 |
Cottonseed Oil | 8,830 | 3,037 | 506 |
Sesame Oil | 20,361 | 21,864 | 23,465 |
Rice Bran Oil | 24,796 | 21,282 | 23,912 |
Perilla Seed Oil | 24,476 | 23,437 | 24,248 |
Fish Oil | 14,610 | 9,923 | 10,085 |
Sunflower Oil | 22,991 | 18,699 | 20,880 |
Total | 1,138,324 | 1,112,825 | 1,165,874 |
Source: Foreign Agriculture Service, Seoul, Korea
Korea: Fats and Oils Imports (MT & US$1,000, Oct/Sep) | ||||
Commodity | MY 2012/13 | MY 2013/14 | ||
Volume | Value | Volume | Value | |
Palm Oil | 346,614 | 292,333 | 402,553 | 340,786 |
Tallow | 24,013 | 23,241 | 10,483 | 10,140 |
Lard | 486 | 471 | 0 | 0 |
Coconut Oil | 61,801 | 58,814 | 57,858 | 73,628 |
Cottonseed Oil | 3,037 | 2,739 | 506 | 677 |
Fish Oil | 8,923 | 20,436 | 9,085 | 19,420 |
Soy Oil | 300,463 | 353,753 | 278,144 | 272,191 |
Corn Oil | 987 | 1,072 | 2,370 | 2,341 |
Rapeseed Oil | 76,355 | 99,762 | 87,914 | 90,445 |
Palm Kernel Oil | 7,195 | 7,310 | 8,910 | 12,005 |
Rice Bran Oil | 11,282 | 18,241 | 13,912 | 20,687 |
Castor Oil | 6,659 | 10,595 | 7,318 | 11,356 |
Linseed Oil | 6,048 | 9,710 | 6,354 | 8,814 |
Sunflower Oil | 18,699 | 31,675 | 20,880 | 31,186 |
Safflower Oil | 20 | 81 | 33 | 137 |
Olive Oil | 9,728 | 39,799 | 14,536 | 56,799 |
Jojoba Oil | 47 | 1,348 | 46 | 1,079 |
Peanut Oil | 13 | 111 | 19 | 120 |
Sesame Oil | 460 | 2,172 | 477 | 2,653 |
Perilla Oil | 947 | 2,582 | 899 | 3,700 |
Camellia Oil | 18 | 294 | 26 | 393 |
Babassu Oil | 4 | 51 | 9 | 119 |
Other Oil | 13,924 | 25,137 | 10,010 | 47,075 |
Total | 897,723 | 1,001,727 | 932,342 | 1,005,751 |
Source: Korea Customs Service (KCS)
Korea: Soybean Oil Imports for Oct.-Dec. by Origin (Unit: MT) | ||||||
MY 2014/15 | USA | Argentina | Brazil | Vietnam | Others | Total |
Oct. 2014 | 78 | 18,654 | 0 | 6,981 | 242 | 25,955 |
Nov | 19 | 11,901 | 783 | 2,827 | 105 | 15,635 |
Dec | 13,121 | 10,294 | 0 | 1,499 | 147 | 25,061 |
Subtotal | 13,218 | 40,849 | 783 | 11,307 | 494 | 66,651 |
MY2013/14 a/ | 17 | 78,536 | 0 | 0 | 657 | 79,210 |
Source: Korea Customs Service (KCS)
a/ October – December 2013
Korea: Applied Tariff Schedule For Fats And Oils (Percent) | ||||
Commodity | H.S. Code | General Rate | 2014 | 2015 |
Lard | 1501.00.10xx | 3 | 3 | 3 |
Beef Tallow | 1502.00.10xx | 2 | 2 | 2 |
Other Tallow | 1502.00.90xx | 3 | 3 | 3 |
Fish Oil | 1504.xx.xxxx | 3 | 3 | 3 |
Soybean Oil for Food, Crude | 1507.10.1000 | 5 | 5 | 5 |
Soybean Oil For Biodiesel, Crude | 1507.10.2000 | 5 | 5 | 5 |
Soybean Oil for Other, Crude | 1507.10.9000 | 5 | 5 | 5 |
Soybean Oil for Food, Refined | 1507.90.1010 | 5 | 5 | 5 |
Soybean Oil For Biodiesel, Refined | 1507.90.1020 | 5 | 5 | 5 |
Soybean Oil for Other, Refined | 1507.90.1090 | 5 | 5 | 5 |
Soybean Oil, Other | 1507.90.9000 | 5 | 8 | 8 |
Peanut Oil | 1508.xx.xxxx | 27 | 27 | 27 |
Olive Oil | 1509.xx.xxxx | 5 | 5 | 5 |
Palm Crude Oil | 1511.10.0000 | 3 | 3 | 3 |
Palm Oil | 1511.90.xxxx | 2 | 2 | 2 |
Sunflower Oil | 1512.1x.xxxx | 5 | 5 | 5 |
Safflower Oil | 1512.1x.xxxx | 5 | 5 | 5 |
Cotton Seed Oil | 1512.2x.xxxx | 5 | 5 | 5 |
Coconut Oil | 1513.1x.xxxx | 3 | 3 | 3 |
Palm Kernel Oil | 1513.2x.xxxx | 8 | 8 | 8 |
Rapeseed Oil, Crude | 1514.11.0000 | 5 | 5 | 5 |
Rapeseed Oil, Refined | 1514.19.xxxx | 5 | 5 | 5 |
Rapeseed Oil, Other, Crude | 1514.91.1000 | 5 | 5 | 5 |
Linseed Oil | 1515.1x.xxxx | 5 | 5 | 5 |
Corn Oil | 1515.2x.xxxx | 5 | 5 | 5 |
Castor Oil | 1515.30.xxxx | 5 | 8 | 8 |
Tung Oil | 1515.90.9040 | 8 | 8 | 8 |
Sesame Oil 1/ | 1515.50.0000 | 40 | 40 | 40 |
Perilla Seed Oil | 1515.90.1000 | 36 | 36 | 36 |
Rice Bran Oil | 1515.90.9010 | 5 | 5 | 5 |
Other, Crude | 1515.90.9090 | 5 | 5 | 5 |
1/ In-Quota tariff rate under the WTO TRQ. Quota is 668 tons. The out-of-quota tariff rate is 630 percent or 12,060 Won/Kg, whichever is greater