South Korea Battle Rising Inflation By Increasing Tariff-Free Imports

20 July 2022

South Korea is grappling with a rising inflation rate of 6% on the basis of year-on-year inflation for the month of June. This is the fastest growth of inflation since November 1998 in South Korea, as per official statistics. The consumer price index increased by 6% in the month of June for 2022, compared to the previous year, making it the fastest-growing consumer price index in the near 24 years. South Korean government has subjected several imports to tariff-free with quotas assigned, such as…

100,000 Tons Of Beef

The quotas of free-import items in South Korea firstly consist of imported beef (bovine meat), i.e., about 1 million tons. The total imports in South Korea for bovine meat amounted to $2.13 billion in 2021. The below table shows the top importing countries for South Korea’s bovine meat/beef imports. The taken HS Code Classification for bovine meat imports is Heading 0202.

82,500 Tons Of Chicken

The imports of chicken in South Korea are made tariff-free for a total volume of 82,500 tons. The total imports of fowls/chicken in 2021 amounted to $13.31 million. The below table shows the top importing countries for South Korea’s imports of chicken/fowl. The HS Code Classification for fowl/chicken is HS Code 01050111.

10,000 Tons Of Powdered Milk

The tariff-free imports of powdered milk, or concentrated milk (or sugar) are for a total volume of 10 thousand tons. The total imports of powdered milk/concentrated milk in South Korea amounted to $61.38 million for 2021. The below table shows the top importing countries for South Korea’s powdered milk imports, as per South Korea import data 2021. The HS Code Classification for powdered milk is Heading 0402.

30,000 Tons Of Pork Belly

The tariff-free imports of pork belly in South Korea will be of a total volume for 30 thousand tons. The total imports of pork/swine meat (excluding whole carcass and parts such as hams and shoulders, with bone-in) in South Korea for 2021 amounted to $1.56 billion. The below table shows the top importing countries for South Korea’s swine meat imports in 2021. The taken HS Code Classification for pork belly is Subheading 020329.

448 Tons Of Green Onion/Leek

The official figures for the last but not the least tariff-free import item – green onion (or leek), shows a total volume of four hundred and forty-eight tons. The non-availability of the official trade figures for South Korea’s leek imports is filled by the trade figures for the imports of onions as an entire group of species.

The total imports of leek in South Korea amounted to $9.01 million for 2021, with an HS Code Classification of Subheading 070390. On the other hand, the total imports of onions in South Korea amounted to $34.69 million for 2021, with an HS Code Classification of Heading 0703.

The below table shows the top importing countries for the imports of onion and the group family of similar vegetables in South Korea for 2021. The taken HS Code Classification for onions is the same as mentioned above, i.e., Heading 0703.

Other Tariff-Free Import Items

Other imported commodities in South Korea tariff-free consists of items such as cooking oil, liquified natural gas (LNG), and coffee beans. The imports of these items will be free from import duties in order to battle the rising inflation in the country.

The below table shows the top importing countries for the imports of coffee beans in South Korea for the year 2021. The total imports of coffee beans in South Korea amounted to $326.47 million for 2021. The HS Code Classification for coffee beans is Subheading 090121.

The South Korean government announced their decision to increase the tariff-free import items on Friday. The tariff-free import items consist mainly of food items and lifted import duties on 26 major industries of South Korea. According to the Ministry of Economics and Finance of South Korea, the decision is taken as an initiative to curb the rising inflation rate and consumer prices.