Consumer Demand for Meat Still Strong Despite Political Turmoil in South Korea
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Embattled South Korean President Yoon Suk Yeol has been arrested and indicted after briefly imposing martial law in December. Yoon also faces an impeachment trial that will determine if he is formally removed from office. USMEF Vice President of Asia Pacific Jihae Yang, a lifelong resident of Seoul, explains that while the political turmoil has further weakened Korea’s currency, consumers are largely unfazed by the situation, and it has not impacted demand for U.S. red meat.
South Korea is the leading value market for U.S. beef exports, with shipments through November of last year totaling just over $2 billion, up 5% from the previous year. U.S. pork exports to Korea climbed 21% over the same period to $669 million, although exports slowed to some degree in the fourth quarter of the year.
Yang explains that this week marks the Lunar New Year, a holiday celebration that typically drives both retail and foodservice sales of red meat. The South Korean government is extending the holiday to boost consumer spending. And while the weakened won is pinching the profit margin of importers, consumers do not show signs of backing off from U.S. red meat purchases.