South Korea: Oilseeds and Products Annual

Breaking with historical practice, Korean soybean crushers began operating below full capacity in mid-2023 and are forecast to further reduce crush volume into marketing year (MY) 2024/25. Soybean imports are forecast to recover slightly from MY 2023/24, but will still remain below average levels on sluggish crushing demand. Post forecasts MY 2024/25 soybean production will increase to 142,000 MT, a 10-year high, on increased planted area in response to subsidies for substituting away from rice planting. Palm oil will continue as Korea’s primary vegetable oil, especially to supply growing instant noodle exports and biofuel production. Soybean meal is expected to remain the dominant protein source in Korea’s compound feed production, though new climate policies to reduce protein levels in feed have somewhat lowered consumption. Competitively priced U.S. soybean meal increased market share to 4 percent in MY 2022/23 and has potential to continue growing in popularity.