By: Byong Ryol Min, U.S. Grains Council Director in Korea

U.S. corn exports have staged a dramatic comeback in South Korea, driven by the record 2013 U.S. corn crop. Korean calendar year figures through March 31 show the United States with sales of 2.5 million tons (100 million bushels) for a market share of 48 percent, up from just 3.6 percent for the entire 2012/2013 marketing year, Sept. 1, 2012, to Aug. 31, 2013. Black Sea and South American producers trail with a 19 and 17 percent market share, respectively.

This rebound has ample precedent. Korea is a mature, sophisticated and highly price sensitive market, and the competition comes from all quarters, as Korean buyers do not hesitate to source from the Black Sea region, South America and South Africa as well as the United States. While Korean buyers and end-users often express a traditional preference for U.S. corn, price is decisive. Last year’s drought-impacted results, in fact, approached the all-time low for U.S. market share in Korea of 3.1 percent which occurred in the 2002/2003 marketing year.Throughout 2013, the U.S. Grains Council provided timely market and technical information and customized trade servicing to Korean coarse grain import buyers and end-users to assure them of the U.S. long-term capacity, reliability, and commitment to the Korean market.

But when the price is right, Korean buyers return to the United States without hesitation. In the nine years between the record low of 2002/2003 and the trough of 2012/2013, U.S. market share reached 90 percent in 2007/2008, 80 percent in the two succeeding years and never fell below 25 percent. However, this year, with abundant supplies and a competitive price, U.S. corn has once again emerged as the leader in this top global market.