South Jeolla Province, a region in South Korea, has recently seen a surge in agricultural and fisheries exports, driven by the K-food craze. However, this growth is now under threat due to potential tariffs imposed by the United States under the Trump administration.
These tariffs pose a significant risk to the province, which heavily relies on agricultural exports to the US. The impact could extend beyond businesses, potentially accelerating the decline of rural communities in South Jeolla, which are already grappling with economic challenges.
According to data from South Jeolla Province and the Korea International Trade Association Gwangju Jeonnam Office, agricultural and fisheries exports from the province reached a record high of $778.83 million in 2024, out of a total export value of $45.56 billion.
Exports of these products to the US amounted to $154.88 million, accounting for 19.9% of the total agricultural and fisheries exports. This represents a substantial 23.3% increase from the previous year, far exceeding the national average growth rate of 7.6%.
While the province's reliance on US exports has decreased slightly from 22.3% in 2020, the actual export value has increased by 18.9%, from $130.17 million.
The imposition of general tariffs would directly hit some small local governments in South Jeolla that heavily depend on exports to the US. For instance, Shinan County's fisheries exports to the US accounted for 68% of its total exports in 2024, amounting to $70 million.
Similarly, in Gangjin County, US exports made up 27% of the total exports, with agricultural and fisheries products comprising the majority of these exports.
Other regions, such as Mokpo and Goheung, also rely on fisheries exports to the US, with dependence rates of 15.2% and 15.9%, respectively.
In the case of Gokseong and Gurye Counties, 25% and 15.5% of their main agricultural exports are sold to the US.
If tariffs on food products lead to a decrease in demand, it could further depress the already declining prices of local specialties such as seaweed, rice, and gulfweed. The small scale of these businesses means that even a slight decline in sales could have a significant impact, raising concerns about the potential damage to small and medium-sized enterprises and farmers.
The eastern part of South Jeolla Province, which plays a crucial role in the province's economy, is also closely monitoring the tariff decisions.
President Trump has announced a 25% tariff on specific goods, including steel. Steel plates, one of the region's top two export items, are primarily produced at the POSCO Gwangyang Steelworks. While the proportion of exports to the US is only 4.4% of the total production, the value exceeds $360 million.
The POSCO Gwangyang Steelworks is closely monitoring the situation and assessing the potential impact of the tariffs on their exports.
The Yeosu National Industrial Complex, which has been experiencing a prolonged slump, is wary of China's increasing self-sufficiency in petrochemical products. However, there is also hope that the US-China trade tensions could bring some benefits to the complex.
The imposition of uniform additional tariffs, as envisioned by President Trump, is inevitable to harm the industry. Furthermore, it is expected to reduce local tax revenues and accelerate the decline of rural communities in South Jeolla Province.
An official from a local economic organization expressed concern about the potential impact of additional tariffs on manufacturing, but also noted that most agricultural and fisheries products exported to the US currently enjoy a 0% tariff rate under the Korea-US FTA. However, they stressed the need to remain vigilant and prepare for unforeseen circumstances, especially in regions and sectors with high dependence on the US market.
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