Deputy Minister Park Byung-hong of the Food Industry Policy Office at the Ministry of Agriculture, Food and Rural Affairs (MAFRA). (Photos: MAFRA)

The global agro-food distribution and consumption paradigm shifted on-line, adopting a non-face-to-face strategy for the post-COVID-19 era, which is expected to serve as new opportunities to boost Korean agro-food exports, said Deputy Minister Park Byung-hong of the Food Industry Policy Office at the Ministry of Agriculture, Food and Rural Affairs (MAFRA).

“As concern on health and immunity is increasing globally, demand for healthy and functional food products is on the rise,” Deputy Minister Park said. “Concern on Korean cuisine and foods is swelling on the back of the spread of hallyu fever, such as K-Pop and Korean films.

The Korean hit film “Parasite” spurred popularity of “Chapaguri” and other Korean ramyun products,” he said as an example.

Despite the hard times caused by the COVID-19 pandemic, he said Korea saw agro-food exports surge to $7.57 billion, a new record, thanks to the private and public sectors’ joint efforts to cope with changed export conditions and consumption trends.

Strawberries and grapes, being nurtured as export hit products, have proved a growth potential in overseas markets, he said.

Deputy Minister Park said the Southern Countries region saw exports surge 9 percent last year over the previous year on the back of sales promotion via on-line and SNS channels and the marketing effects of hallyu to top the No. 1 exporting region.

The following are excerpts of an interview with Deputy Minister Park in which he spoke of his ministry’s strategies to boost agro-food exports.

Question: Would you tell our readers about the 2020 export performance of K-Food, which is enjoying popularity as a healthy food from people around the world, and the export outlook for 2021?

Answer: Despite the hard times caused by COVID-19 pandemic, the private and public sectors’ joint efforts to cope with changed export conditions and consumption trends paid off: Logging $7.57 billion in agro-fishery exports last year, a 7.7 percent year-on-year increase and a new record.

By item, traditional fermented foods, such as kimchi and bean paste products saw exports jump by more than 30 percent thanks to efforts to publicize their benefits as functional foods.

Instant foods such as ramyun and rice processed foods showed signs of rising exports on the back of the spread of hallyu (Korean Wave) and sales promotion and publicity activities tailored to meet local tastes.

Strawberries and grapes, being nurtured as export hit products, have proved a growth potential in overseas markets thanks to support export shipping and reinforced quality management despite difficult conditions such as bad weather and rising logistics costs.

By region, major export destinations such as “New Southern Countries,” the United States and China, saw export rise overall.

In particular, the region of New Southern Countries saw exports surge 9 percent last year over the previous year on the back of sales promotion via on-line and SNS channels, and the marketing effects of hallyu to top the No. 1 exporting region.

Even though export conditions remain uncertain since the pandemic is still protracted into this year, we plan to provide support to help the agro-food export industry continue to grow, as it did last year by coping with changes of export market trends in advance.

Q: The hallyu fever has contributed to boosting brand awareness of K-Food and ramyun exports. What about new trends of Korean agro-fishery exports?

A: The global agro-food distribution and consumption trend in the post-COVID-19 era is undergoing a dramatic shift with a focus on on-line, non-face-to-face channels, healthy food, and home-made meals. This move is expected to serve as new opportunities to boost Korean agro-food exports.

As concern for health and immunity is increasing globally, demand for healthy and functional food products is on the rise. Demand for home meal replacements, which can be cooked and eaten at home with ease, is also expanding.

Interest in Korean cuisine and foods is swelling on the back of the spread of hallyu fever, including K-Pop and Korean films, as was the case when the Korean hit film “Parasite” had spurred popularity of “Chapaguri” and other Korean ramyun products.

MAFRA, reflecting on these trends, plans to implement policy steps to support agro-food exports. In particular, expanded on-line exports will be prioritized through on-line and non-face-to-face market exploration and publicity activities.

The ministry will ramp up publicity activities to make a pitch for kimchi, bean paste, and other fermented food products as well as ginseng and other functional foods. Instant foods, developed to meet local tastes and needs, will be nurtured as promising items in the post-COVID-19 era with expanded marketing activities tailored according to local conditions.

We plan to conduct aggressive publicity activities coupled with hallyu fever to tap the Southeast Asian market, where Korean Wave is enjoying popularity.

An American chooses Bibigo’s Bibimbap product at the Asian food zone of a U.S. large-sized retailing outlet. (Photo: CJ Cheiljedang)

Q: Would you elaborate on the significance and achievements of the opening of Korea’s national food pavilions on foreign on-line malls last year, and future K-Food marketing plans?

A: It is necessary to lay a foundation to help Korean agro-food items enter the on-line market to cope with a new distribution and consumption paradigm for on-line channels in the post-COVID-19 era, and to enable smaller food exporters address non-face-to-face economic activities.

Korea’s national food pavilion was installed on the T-mall, China’s biggest on-line shopping channel, last November.

The ministry provided support to the installing of strategic items and populous K-Food products such as ginseng, grapes, bean paste products, ramyun, rice caddies, and maklkeolli and their publicity activities, which were focused on Chinese shopping festivals such as Guanggunjie (Singles’ Day).

Cumulative sales swelled to 1.063 billion won and the number of installed items increased to 120 as of last Dec. 31 thanks to the intensive marketing activities.

Besides, the ministry continues to provide support to conventional off-line methods, such as on-and-on export consultation sessions, K-Food fairs by shifting them into one-line ones to connect buyers.

MAFRA redoubled efforts to raise brand awareness of Korean agro-food products using hallyu content such as K-Pop music, films and dramas and local influencers.

We will continue to expand Korean agro-food products’ presence via on-line distribution channels, strengthen non-face-to-face connectivity with buyers and ramp up consumer publicity activities using new media this year.

The number of Korea’s national food pavilions on on-line shopping malls in China and New Southern Countries will rise from one last year to five this year.

Information on exporters and items will be displayed on-line permanently, while non-face-to-face negotiations between exporters and buyers will be regularized. Publicity activities will be conducted through connectivity with SNS influencers, K-Pop on-line concerts and internal ads of web dramas.

Q: Would you specify strategies to boost food exports such as kimchi and ginseng, which enjoy popularity abroad?

A: Kimchi, bean paste and other traditional fermented product exports that show signs of growth in the wake of the pandemic need to be promoted. T

he ministry will ramp up publicity activities for kimchi’s effect of improving immunity, developing products tailored to meet local tastes and spreading recipes coupled with Korean cuisine culture.

Marketing activities for bean paste products will be strengthened by making the most of hallyu and local Korean restaurants in New Southern Countries, where Korean food materials enjoy popularity.

Rising global concern for health will serve as an opportunity to boost ginseng and other functional food exports.

The ministry plans to complete ginseng’s registration as a functional food in Japan via clinical tests, while on-line and off-line marketing activities will be concentrated during major shopping seasons of the Chinese sphere.

MAFRA plans to build premium brand awareness of Korean fresh agro produces by prioritizing all export stages of strawberries and grapes ranging from production to sales. Strawberries and grapes are nurtured as agro food export stars.

Q: Would you speak about exploring overseas markets to cope with reinforced foreign non-tariff barriers?

A: The expansion of free trade agreements such as the signing of the Regional Comprehensive Economic Partnership (RCEP) Agreement is expected to serve as opportunities to boost Korean agro-food exports.

On the other hand, non-tariff barriers such as food hygiene and quarantine have been reinforced constantly to protect their markets.

The government provides overall support to each export stage ranging from domestic production to customs clearance and quarantine and marketing so that Korean agro-food exports to foreign markets can be expanded by coping with reinforced non-tariff barriers.

As for fresh agro-foods, a safety management regime, depending on each country, and supporting safety inspection fees and other steps are being taken to minimize violations of agro-produce safety regulations and ensure a smooth customs clearance process.

MAFRA provides support for the development of products and improvement, and overseas marketing activities so as to explore new export items via export merchandise projects. It also implements a localization project to make exports corresponding to local institutional systems.

We plan to ramp up the monitoring of non-tariff barriers and give related information to exporters, a step to eliminate grievances and complaints related to customs clearance, and smooth out Korean agro-food exports’ market entry.