Soybean oil and fractions market in South Korea

Earlier Report Observations

Between 2018 and 2021, South Korea's soybean oil market expanded from 479,000 tons to 642,000 tons, primarily fueled by rising imports. A gradual decline in soybean import costs through 2019 improved raw material affordability for processors. Concurrently, shifts in industrial policy aimed at boosting manufacturing competitiveness indirectly supported processing capacity. This growth was further accelerated in 2021 as strengthened environmental policies, including distributed energy initiatives, increased demand for sustainable and eco-friendly edible oil.

The market contracted to 571,000 tons in 2022, likely due to tightened food safety and chemical management regulations that imposed stricter labeling and handling requirements, temporarily affecting supply chains. Recovery followed in 2023, with consumption reaching 634,000 tons, aided by market segmentation into health-functional and eco-friendly product lines. Changing consumer cycles, inflation, and economic pressures reshaped purchasing patterns, aligning demand with these new segments.

Preliminary 2024 import data shows a decrease to 354,000 tons, suggesting the influence of broader economic headwinds like high global commodity prices and interest rates, which affected raw material supply and costs. This occurred despite a record U.S. soybean harvest offering improved quality and availability. Ongoing regulatory developments, including the Fifth National Biodiversity Strategy and revised chemical control rules, continue to shape the market's operational environment.

Production soybean oil and fractions in South Korea

In kind, 2017-2020, K t

From 2017 to 2020, South Korea was one of the world's leading producers of soybean oil and fractions, ranking 27th globally by production volume.

Top producers of soybean oil and fractions, 2017-2020

World map of production of soybean oil and fractions, 2017-2020

South Korea's production of soybean oil and fractions increased for the second consecutive year. In 2020, the country produced 198.0 thousand tons, marking a moderate 4.2% rise compared to 2019. The lowest production level was recorded in 2018 at 189.8 thousand tons, which represented the largest decline of 2.8% during this period.

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

Exports soybean oil and fractions from South Korea

Exports in kind, K t

The data shows irregular changes, indicating a volatile market environment. Export volumes fluctuated significantly, with a 5.9-fold difference between the peak in 2017 and the low in 2018. In 2020, South Korea exported 2.2 thousand tons of soybean oil and fractions, showing a gradual improvement of 9.4% from 2019. The lowest export volume was recorded in 2018 at 1.8 thousand tons, which saw the largest decline of 83.2%.

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

From 2017 to 2020, the main destinations for South Korea's soybean oil and fractions exports were Bangladesh (47.3% of exports in kind), Russia (18.3%), and Japan (7.9%). Together, these three countries accounted for 73.5% of total export 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, M $ US

The market exhibited an unstable trend throughout this period. The highest export value was recorded in 2017, while the lowest occurred in 2018, with a peak-to-trough ratio of 3.8 times. In 2020, South Korea exported 3.7 million US dollars worth of soybean oil and fractions, representing a significant year-on-year gain of 24.0%. The minimum value was recorded in 2018 at 2.8 million US dollars, which saw the largest decline of 73.3%.

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

From 2017 to 2020, Bangladesh (33.0% of exports in value terms), Russia (20.9%), and Japan (10.6%) accounted for the largest share of South Korea's soybean oil and fractions exports by value. Together, these three markets comprised 64.5% of total export flows.

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 soybean oil and fractions to South Korea

Imports in kind, K t

South Korea's imports of soybean oil and fractions increased for the second consecutive year. In 2020, imports totaled 391.2 thousand tons, marking a robust year-on-year advance of 11.5%. Between 2017 and 2020, imports grew by 26.3%, equating to an annualized rate of 8.1%. The lowest import volume was recorded in 2018 at 291.0 thousand tons, which saw the largest decline of 6.1%. The largest increase occurred in 2019, with a 20.6% rise.

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

From 2017 to 2020, the United States dominated South Korea's imports of soybean oil and fractions in kind, accounting for 79.2% of total flows. The remaining share was distributed among various smaller trading partners.

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, M $ US

South Korea's imports of soybean oil and fractions by value increased for the second consecutive year. In 2020, imports stood at 312.3 million US dollars, marking a robust 18.6% increase compared to the previous year. Over the 2017-2020 period, imports grew by 17%, with a compound annual growth rate of 5.4%. The minimum value was recorded in 2018 at 239.8 million US dollars, which saw the largest decline of 10.2%.

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

From 2017 to 2020, the United States was the primary source for South Korea's imports of soybean oil and fractions by value, accounting for 77.8% of total flows. Other markets formed a long tail of smaller partners.

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

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