South Korea – The potential buyer of Vietnam’s fresh/live/frozen octopus

In the first 10 months of this year, Vietnam’s cephalopod exports to South Korea were on the upward trend, except for January. The figure in the period estimated at US$178.3 million, up 38.4% over the same period in 2016.

Koreans have high demand for cephalopod, especially dried items. Cephalopod imports into South Korea have been on the increase due to high demand for healthy foods.

According to ITC data, in the first 9 months of this year, cephalopod imports into South Korea fell by 48% to see over US$230 million. China was the largest supplier to Korea; followed by Peru and Vietnam.

In Jan-Sep this year, among the main cephalopod products imported into South Korea; imports of fresh/live/chilled octopus (HS code 030751), processed squid (HS code 160554), processed octopus (HS code 160555) increased by 33.6%; 25.5% and 27.9%, respectively, while those of frozen/dried/salted squid and octopus (HS code 030759) decreased by 70.4% and 98.6%, respectively.

South Korea consumes more octopus than squid. Of that, imports of frozen/dried/salted octopus account for an average share of 49-61% of the total import value, those of fresh/live/chilled octopus take up 11-20% and those of frozen squid occupy 16-30%.

Vietnam's shipments of fresh/frozen octopus take up the biggest proportion in total cephalopod sales to South Korea; followed by dried squid and fresh/frozen squid.

Vietnam expected to boost exports of fresh/live/frozen octopus (HS code 030751 and HS code 030759) to South Korea thanks to the tax rate of 0%.

For frozen octopus, Vietnam accounts for the market share of 35% in value while China takes up 45%. In this segment, Vietnam also has a good chance to increase the market share thanks to the tax rate of 0%, while China is subject to the tax of 20%.