The Chinese Kimchi Surge: How South Korea's National Dish Faces a Price War Domestically.

The distinct scent of red chilli powder permeates the air at a production facility in a city near Seoul. Within, brined napa cabbage soaks in sizeable industrial containers during the primary step of a traditional process.

"It's now considered a global dish originating in Korea, but this situation is absurd," notes a factory owner. "This market has been seized."

The struggle originates from a widening import-export gap. The country imports a greater volume of kimchi than it exports, with more affordable Chinese-produced products gaining a foothold in the domestic market.

A Costly Difference

Chinese kimchi sells to restaurants at about 1,700 won per kilogram. However, Korean-made versions cost about 3,600 won per kilogram—more than double the price.

From January to October this year, imports reached $159 million, predominantly from China, while exports were valued at $137 million.

A Cornerstone of Culture

Kimchi is a cornerstone of food culture on the Korean peninsula. The term covers far more than the spicy cabbage best known by international diners.

  • There are over 150 known types, made with daikon, cucumbers, scallions and other vegetables.
  • They are flavored with mixtures of pepper flakes, garlic, ginger and fermented seafood paste.
  • The natural fermentation produces health-promoting lactic acid bacteria, contributing to its reputation as a health food.

Changing Consumption

Traditionally, families prepared large quantities together during kimjang, a tradition designated by UNESCO. Yet, how Koreans consume kimchi are changing.

Single-person households have increased dramatically since 2000, now representing more than 36% of all households. Consequently, a declining number make kimchi at home.

Nowadays, it is increasingly consumed pre-packaged or while eating out, where it is served free of charge with every meal. Charging for such a staple would be inconceivable.

A Difficult Business

"If you manage to break even and don’t go bankrupt, that’s considered lucky," says one manufacturer. "In our industry over the past decade, we haven’t been able to invest in equipment."

An Emotional Staple

Economic realities mean that cost, rather than origin or method, is now the decisive factor.

One factory owner who has run a business for 29 years canceled plans for expansion years ago as Chinese imports gained ground. "Is it right to use imported kimchi when this is a food that contains our people’s soul?" he says. "It's deeply saddening."

Compounding Pressures

The pressures are compounded by the climate crisis, which is disrupting cabbage farming. Growing in summer has become increasingly difficult in traditional mountainous regions, causing wholesale cabbage prices to sometimes more than double from one year to the next.

Government agencies and producers are developing climate-resistant varieties and improved storage systems, but industry groups doubt whether such measures can counteract the pressures.

Approximately three-quarters of the nation's kimchi manufacturers are very small enterprises with four or fewer employees, using labour-intensive methods that struggle to compete with large-scale production in China.

Finding a Way Forward

The sector is trying to respond, albeit with limited tools.

  • A voucher scheme offers restaurants a financial incentive to return to using Korean-made kimchi.
  • There are petitions for increased scrutiny of customs valuations for kimchi.
  • Government initiatives include voluntary labelling schemes for restaurants, agricultural support for cabbage growers, and studies to extend kimchi’s storage time for export.

The Final Defense

Ultimately, many are convinced that superior quality remains South Korea’s best asset.

"Korean kimchi has a unique taste," states an association head. "That cannot be replicated."

Deborah Simpson
Deborah Simpson

A passionate gamer and tech enthusiast with years of experience in reviewing and writing about the gaming industry.