Wedoany.com Report-Mar 19, A push by the South Korean government to replace rice paddies with other crops has led to a 20-year high in soybean production and a 12-year high in soybean acreage, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.
Although imports still account for 89% of the annual soybean supply in South Korea, soybean output, which in the 2025-26 marketing year is projected at 160,000 tonnes, has steadily risen in recent years. The FAS forecast is based on a survey by the Korea Rural Economic Institute.
“The growth in soybean acreage marks a continuous increase over the past five years and nearly double 2020-21 production,” the FAS said.
To sustain long-term growth in domestic soybean production, the South Korean government is considering initiatives to promote consumption of local soybeans, “which could lead to further expansion in the coming years,” the report said.
Crush demand, and thus soybean imports, are expected to remain stagnant, the FAS said, as market conditions drive crush facilities to operate at 15% to 20% below capacity in 2024-25 and into 2025-26. Total import volumes are expected to remain below 1.1 million tonnes, about 100,000 tonnes below average.
“With low crushing, Korea is forecast to maintain stable supplies of soybean meal for the domestic feed market through imports and drawing down stocks,” the FAS said.
It noted that crushers have growing stocks of soybean oil that was imported in 2023-24. The FAS noted that a government import tax exemption from 2022 to 2023 to curb inflation in South Korea led to increased soybean oil imports from South America and Southeast Asia that inflated stocks.
