Korea. Oils Annual. Mar 2015 / News / AgroChart

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

Korea. Oils Annual. Mar 2015 April 9, 2015