South Korea’s Soybean Production Rises, Imports Likely to Decline

South Korea's soybean production is set to reach 160,000 tonnes in the 2025-26 season, marking a notable increase following government initiatives encouraging farmers to shift from rice to soybeans. According to the Foreign Agricultural Service (FAS) of the USDA, soybean acreage has hit a 12-year high, driven by government incentives aimed at crop diversification.

Despite growing domestic production, South Korea continues to depend significantly on soybean imports, which currently account for 89% of its total consumption.

Key Factors Behind Production Growth

Government Policies Boost Soybean Farming

• The government promoted converting rice paddies into soybean fields, increasing acreage significantly.
• Soybean acreage has reached its highest level in 12 years, contributing to the projected domestic output of 160,000 tonnes for 2025-26, compared to 150,000 tonnes in 2024-25.

Production and Import Trends

Soybean Imports and Crushing Activity

Lower Imports Anticipated

• Soybean imports are projected to remain below 1.1 million tonnes, roughly 100,000 tonnes lower than recent annual averages.
• Crushing plants currently operate at 15-20% below capacity, mainly due to weaker demand.

Soybean Meal and Oil Market Dynamics

• Soybean meal remains adequately supplied through imports and existing stock levels, meeting feed industry requirements.
• Soybean oil stocks are high due to increased imports under a government tax exemption policy during 2022-2023. An adjustment in market conditions is expected soon.

South Korea’s earlier tax exemption on soybean oil imports notably boosted inventories. However, with the exemption period now concluded, the market anticipates a gradual normalization.

Future Trends and Government Initiatives

The government plans to encourage local soybean consumption to reduce import dependence further. Increasing domestic production aligns with South Korea’s broader goals of food security and agricultural sustainability.