"We aim to enhance the income of Korean fishermen by expanding the export of seafood products. Since our opening last March, we have achieved export results of 5.5 billion won," said Kim Dong-hee, head of the National Fisheries Cooperative Federation's Osaka office, during a meeting in Osaka on May 28.
The Osaka office represents more than just a foreign branch; it serves as a "local direct distribution platform." By moving away from reliance on private exporters, the cooperative has established its own distribution network in Japan.
Osaka, a hub for seafood consumption in Japan, is strategically located near major cities like Kyoto, Kobe, and Nara, making it advantageous for securing large consumer markets. The cooperative chose Osaka as the site for its first overseas office to develop it into a supply base for K-seafood in western Japan.
Since its opening on March 18 last year, the Osaka office has focused on exporting live abalone and flounder. Previously, Korean seafood had to go through middlemen or local wholesalers before reaching the market. Now, the cooperative manages the entire process from production to export and local distribution, enhancing the freshness of the seafood.
Collaborating with York Benimaru, a leading distribution market in Japan, the office is working on seafood supply and has confirmed exports of frozen abalone and salt. Additionally, it is developing new products tailored to buyer demand, including flower crabs.
From March to December last year, the office exported 3.8 billion won (180 tons) of live abalone and 1.3 billion won (60 tons) of live flounder, totaling 5.5 billion won in exports. The cooperative is also diversifying its main products to include frozen abalone and live octopus.
These achievements did not come easily. The Japanese market has high barriers for new entrants, as once a relationship is established, it is typically maintained. Kim reflected, "I approached buyers as if I were hitting the ground running, making calls and visits." The cooperative actively sought out importers by sending emails and arranging meetings with those who responded.
Kim noted, "Once we meet, I feel confident. When I introduce our organization as similar to the Japan Fisheries Cooperative Association, trust begins to build with the buyers. Once mutual understanding is established, we can start trading."
There is significant interest among Japanese consumers in Korean abalone. Kim stated, "Farmed abalone is regarded as top quality in Korea and is a must-have in high-end restaurants for dishes like teppanyaki and butter-grilled abalone."
The National Fisheries Cooperative Federation is also accelerating the process of establishing a local corporation for the Osaka office. The cooperative believes that formal incorporation will further contribute to diversifying exports.
Kim explained, "Once we incorporate, we can expand our network to include small businesses that want to import Korean seafood but are currently unable to due to their size. This will enhance the diversification of Korean seafood exports. We are also considering storage facilities like tanks."
However, the intensifying competition in the abalone market poses challenges. In 2017, Japan imported between 1,600 and 1,700 tons of abalone, but this figure surged to 2,500 tons last year. The increased volume has led to a drop in abalone prices.
Kim remarked, "Internal competition within the Korean aquaculture industry has intensified, leading to overproduction and lower prices for export volumes. I understand that some regions are even in the process of reducing their aquaculture facilities as if they were cutting back on fishing boats."
* This article has been translated by AI.
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