#冬日生活打卡季#
In today's world, food is an indispensable part of people's daily lives, and South Korea, as a major food importer, has a direct impact on the lives of ordinary Koreans due to the rise in rice prices. According to the data, the retail price of rice in South Korea has reached as high as US$3.41-6.24 per kilogram, compared to the relatively low price of rice in China, averaging between US$1-2 per kilogram.
Faced with such high rice prices, some Chinese saw business opportunities and set their sights on the South Korean market. Nicknamed "grain merchants," they organized themselves to flock to South Korea with rice in an attempt to make a handsome profit in this high-priced market.
1. The reason for the soaring price of rice in South Korea
South Korea's small geography, with most of the country's rolling mountains and limited plains, has limited arable land and constrained the production of food such as rice. The area under rice cultivation in South Korea has been declining in recent years and is expected to decrease further in the coming years. In 2023, South Korea plans to reduce the rice planting area by 5.1%, which will directly affect the total rice production, resulting in a relatively insufficient supply of rice in South Korea.
Due to limited land and resources, South Korea struggled to meet the growing demand for rice by increasing production. This limitation of land resources has made it a huge challenge for South Korea to become self-sufficient in food, and has become a structural problem in the rise of domestic rice prices.
As a developed country, South Korea's price level has always been high, and inflation in recent years has caused the cost of agricultural production to rise. The rising costs faced by farmers in producing, purchasing and selling rice have directly contributed to the increase in the price of rice. In addition, the rise in the price of raw materials such as fertilizers and pesticides required for agricultural production has further increased the cost pressure on agricultural production.
In order to maintain normal agricultural operations, farmers were forced to increase the selling price of rice in response to rising costs, and this cost pass-through was eventually reflected in the Korean market. The price increase caused by this inflation has made necessities such as rice more expensive, which in turn has affected the living standards of ordinary South Koreans.
South Korea's economy is structured in a predominantly small number of chaebols, including companies that also have a huge presence in the agricultural sector. These chaebols have formed a relatively monopolistic position in the production, purchase, and sale of grain, which has directly affected the grain pricing mechanism. This monopoly position has made these chaebols more concerned with their own economic interests than with the stability and fairness of society as a whole.
In grain pricing, these chaebols prefer to keep selling prices at relatively high levels in order to make higher profits. Their actions have not only led to a continuous increase in the price of rice in South Korea, but also a greater economic reward for the chaebols. The existence of such a monopoly position makes it difficult for the market price of grain to be effectively regulated in the course of market competition, and this has brought quite a few problems to South Korean society.
Due to the limited land resources in South Korea, it is difficult for domestic production to meet market demand, so South Korea needs to import a large amount of grain. However, imported rice also faces high costs, including international transportation, customs duties, and other links, which directly increases the overall price of Korean rice.
With the impact of global climate change, international tensions and other factors, the uncertainty of the international grain market has increased, which also makes South Korea face greater risks in terms of rice imports. As a result, the increase in the price of rice in South Korea is constrained not only by domestic factors, but also by fluctuations in the international market.
Second, behind the flock of Chinese rice to South Korea
Against the backdrop of soaring rice prices in South Korea, a unique and striking phenomenon has emerged - "grain customers". This group is made up of some smart Chinese people who saw the opportunity of relatively high rice prices in South Korea and flocked to South Korea in a way that was taking rice with them, trying to make a good profit from this market difference.
"Grain customers" are not sporadic individuals, but a group that has been organized and planned, and a certain organizational structure and division of labor have been formed between them. Through teamwork, they are able to more effectively take on multiple links such as transportation, purchase, and delivery, minimizing individual costs. This collective action has allowed them to demonstrate a strong sense of synergy in their flock to South Korea.
The "food customers" are not formed by chance, and there is a certain organization and plan behind them. These organizations are profit-oriented, with detailed action plans and organizational structures in place to drive the behaviour of "food customers". They organize people through social platforms, offline communities and other means to share relevant information and coordinate actions to ensure that the entire "food customers" group can carry out goods activities in an orderly and efficient manner.
During this process, the organizers will pay attention to the dynamics of the Korean rice market, including information such as price fluctuations and demand trends, so that they can adjust the action plan in time. This planned form of organization makes the behavior of "food customers" more targeted and flexible, and better responds to market changes.
It is no accident that "food passengers" chose Qingdao Jiaodong Airport and Beijing Daxing Airport as the take-off and landing points for their operations. The two airports are located on the coast of the East China Sea and the capital Beijing, respectively, and there are a number of deliberate reasons behind their location.
Qingdao Jiaodong Airport is strategically located close to South Korea, and the airport has complete facilities and high capacity. This makes it easier for "grain passengers" to get in and out, reducing transportation costs. As a major international hub airport in China, Beijing Daxing Airport has abundant route resources and an efficient logistics network, providing more choices and convenience for "food passengers", enabling them to plan their actions more flexibly.
As a large group, the flocking to South Korea has undoubtedly had a series of impacts on airlines. Due to the large number of "food passengers" buying air tickets, the number of tickets sold by airlines has increased, which has brought them a certain profit. This has also led some airlines to maintain a relatively tolerant attitude towards the activities of "food passengers".
At the same time, since "food passengers" usually carry a large amount of heavy luggage, this puts additional pressure on the transportation and safety of airlines. In order to avoid the cost of excess baggage, some "food passengers" adopt the method of overweight hand luggage and fracturing luggage racks, which directly affects the load and balance of the aircraft and increases the risk of flight.
3. The impact of Chinese rice on the Korean market
As the price of rice in South Korea continues to rise, the cost of living of the Korean people is gradually rising, and the demand for food is increasing. At this time, the low price advantage and relatively high quality characteristics of Chinese rice have become a major attraction for Korean consumers.
In the market, some retailers have introduced Chinese rice and sold it at a more reasonable price. At the same time, some cross-border e-commerce platforms have also launched channels dedicated to the sale of Chinese rice, further broadening the sales channels of Chinese rice in the Korean market. This change in supply and demand has enabled Chinese rice to gradually gain more attention and market share in the Korean market.
Chinese rice has made its mark in the South Korean market, and its influence is not limited to the price level. With the entry of Chinese rice, there could be a series of potential changes in the South Korean grain market.
The large-scale influx of Chinese rice may have a certain impact on South Korea's domestic rice industry. Due to the limited land area and climatic conditions, South Korea's rice production is limited. As South Korean consumers gradually turn to Chinese rice, the local rice industry may face sales pressure, forcing farmers to adjust their planting structure or seek other outlets.
The introduction of Chinese rice will also lead to the internationalization of the Korean grain market. Under the competition of Chinese rice, Korean consumers will have more choices and will have easier access to different types of rice in the international market. This is expected to broaden the diversity of South Korea's grain market, increase consumer choice and market competitiveness.
The influx of Chinese rice may also spur innovation and upgrading of the Korean rice industry. In order to compete with Chinese rice, South Korea's agricultural sector is likely to invest more resources in technological innovation and variety improvement to improve the quality and competitiveness of local rice, which is expected to promote the upgrading of the entire industry.
IV. Conclusion
The influx of Chinese rice to South Korea underscores the interplay of global food trade. In the face of this change, all parties should jointly explore effective ways to solve the food problem based on the principle of win-win cooperation.