Fuel wood in chips and particles market in South Korea, 2026

Earlier Report Observations

The South Korean market for fuel wood chips and particles opened the period at 2.51 million tons in 2018, bolstered by regulatory actions that tightened controls on imported timber and introduced a system to restrict illegal wood trade from October 2018, which encouraged domestic production. Concurrently, the initiation of Renewable Energy Certificate (REC) weight applications for utilizing post-harvest unused forest biomass for energy generation stimulated additional demand. However, the market contracted to 2.34 million tons in 2019 as domestic log supply diminished and obtaining harvesting permits became more difficult, leading to reduced output and bankruptcies among some board manufacturers.

A significant downturn followed with the onset of the COVID-19 pandemic in 2020, which triggered a slowdown in the construction sector and reduced demand for wood products, pushing the market volume down to 1.97 million tons. This declining trend persisted through 2021 and 2022, with the market reaching a low of 1.55 million tons by 2022, as the prolonged construction slump and rising import log prices continued to suppress consumption. Efforts to expand timber production in state-owned forests and increase the cutting of pest- or disaster-damaged trees provided some offset but were insufficient to reverse the overall market contraction.

The market rebounded to 1.70 million tons in 2023, primarily driven by a sharp surge in imports of wood pellets, especially from Russia and Vietnam, as supply chains reconfigured in response to EU sanctions on Russia. Domestic production also experienced a modest recovery. For 2024, wood pellet imports are projected to grow further, supported by regulatory developments including the amended Enforcement Decree of the Act on Sustainable Use of Timber, which strengthened product certification and domestic wood verification procedures from July 2024.

Production fuel wood in chips and particles in South Korea

In kind, 2017-2020, K t

From 2017 to 2020, South Korea ranked as the world's 22nd largest producer of fuel wood in chips and particles.

Top producers of fuel wood in chips and particles, 2017-2020

World map of production of fuel wood in chips and particles, 2017-2020

South Korea's production of fuel wood in chips and particles declined for the second year in a row. In 2020, the country produced 1 218 K t, representing a 14.1% decrease compared to the previous year. Over the 2017-2020 period, production fell by 5.7%, which translates to an average annual decline of 1.9%. The highest production level was recorded in 2018 at 1 584 K t, with the largest year-over-year increase of 22.6% also occurring that year.

Annual dynamics of production in South Korea in kind, 2017-2020, K t

Exports fuel wood in chips and particles from South Korea

Exports in kind, K t

The market showed significant fluctuations during this period. Exports reached their lowest point in 2019 and peaked in 2017, with a 6.4-fold difference between these years. In 2020, South Korea's cross-border shipments of fuel wood in chips and particles stood at 0.0 K t, reflecting a sharp increase of 369.6% compared to 2019. The minimum value was recorded in 2019 at 0.0 K t, with the largest decline of 75.6% also occurring that year.

Annual dynamics of product's exports from South Korea in kind, 2017-2020, K t

Between 2017 and 2020, South Korea's exports in kind were heavily concentrated, with China accounting for 96.7% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South Korea in kind, 2017-2020

Exports in value, K $ US

The market exhibited considerable volatility during these years. Exports bottomed in 2019 and peaked in 2018, with a 9.6-fold difference between these periods. In 2020, the value of exported fuel wood in chips and particles from South Korea amounted to 19 K $ US, marking a sharp increase of 286.5% compared to the previous year. The minimum value was recorded in 2019 at 5 K $ US, while the maximum value was reached in 2018 at 47 K $ US. The largest decline occurred in 2019 with an 89.6% decrease.

Annual dynamics of product's exports from South Korea in value, 2017-2020, K $ US

From 2017 to 2020, China and Malaysia were the dominant buyers of fuel wood in chips and particles from South Korea in value terms, together accounting for 88.5% of total exports, while other partners played a less significant role.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South Korea in value, 2017-2020

Imports fuel wood in chips and particles to South Korea

Imports in kind, K t

South Korea's imports of fuel wood in chips and particles declined for the second consecutive year. In 2020, imports amounted to 755.1 K t, marking a strong decrease of 18.2% compared to 2019. Over the 2017-2020 period, imports fell by 15.1%, equating to an average annual decline of 5.3%. The maximum value was recorded in 2018 at 926.2 K t, with the largest increase of 4.2% also occurring that year.

Annual dynamics of product's imports to South Korea in kind, 2017-2020, K t

During 2017-2020, virtually all imports in kind of fuel wood in chips and particles to South Korea came from Vietnam, which accounted for 96.7% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South Korea in kind, 2017-2020

Imports in value, K $ US

After two years of growth, South Korea's imports of fuel wood in chips and particles in value terms declined. In 2020, imports totaled 59 697 K $ US, marking a contraction of 22.9% compared to the previous year. Over the 2017-2020 period, imports decreased by 7.4%, with a compound annual growth rate of -2.5%. The maximum value was recorded in 2019 at 77 404 K $ US, with the largest increase of 13.7% also occurring that year.

Annual dynamics of product's imports to South Korea in value, 2017-2020, K $ US

From 2017 to 2020, Vietnam effectively dominated South Korea's imports of fuel wood in chips and particles in value terms, accounting for 95.0% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South Korea in value, 2017-2020