"Please give me a bidding sheet. No one is using it. Let's write it. I'm writing."
On the morning of the 22nd at 11 a.m. at Song Airport in Abhae, Sinan County, the voice of Director Ko Hong-jun, head of the Sinan County Fisheries Cooperative's Songgong branch, grew louder as he conducted the auction of seaweed.
Director Ko ran around the fishing boat that had returned after collecting the seaweed, shouting the types and conditions of the seaweed. The auction proceeded with four fishing boats at a time. As Director Ko shouted, "Number 1 Gonchang," "Number 2 Maruba Eulchigi," "Number 3 General," "Number 4 General," the assistant auctioneer following him announced the names of the fishermen who collected the seaweed, like "Mr. Kim 00 for number 1" and "Mr. Choi 00 for number 2."
The intermediaries participating in the bidding moved their boats around to check the condition of the seaweed. It is said that the quality is determined by the color and shape of the seaweed, as well as the amount of impurities present. Both the auctioneer and intermediaries have been doing this for decades. Just by looking at the color of the seaweed, they can immediately tell if it is a product or a lower grade. The name of the cultivator also serves as a secondary indicator. The cultivator's name is a kind of "brand."
The intermediaries wrote down the price they wanted to purchase on the bidding sheet and handed it to Director Ko. Director Ko loudly announced the highest price among the bids submitted by the intermediaries.
A total of about 10 rounds of auctions were held that day. The Gonchang seaweed and Maruba Dolgim, classified as premium seaweed, received relatively high prices. The bid price for Gonchang seaweed exceeded 200,000 won. High-quality items approached 300,000 won. The "Eulchigi," a mix of these and general seaweed, was auctioned for the 100,000 won range.
On the other hand, general seaweed was left out in the cold. The lowest bid price for general seaweed that day was 35,000 won, which is the price for a large net of 120 kg. Choi Myung-yong, head of the Songgong Fishing Village Commission, noted, "Last year, when the demand for seaweed increased and prices rose, we could get 200,000 won for a large net of general seaweed." According to the Sinan County Fisheries Cooperative, the average price of general seaweed this month is 43,000 won. The price, which was 178,000 won last January, has dropped to a quarter. In March of last year, the average price of general seaweed reached 286,000 won.
That day, there were instances of algae with no bidders at auction. Director Ko stated, "Seaweed that has no buyers becomes waste," adding, "Fortunately, there isn't a large amount that went unsold today. I might have to ask the intermediaries to take it for just 30,000 won." He also commented, "Still, today's prices in Songgong are pretty good." He added, "Yesterday, the average price for a large net of seaweed at the northern site (located in Jido-eup, Sinan County) was just 20,000 won."
◇ It's the right time for seaweed harvesting… the quiet waters off Songgong
At 7 a.m. on the 22nd, the sun rose behind the Abhae Bridge connecting Mokpo and Abhae Island. After driving for about 20 minutes from the Abhae Bridge, I arrived at Songgong, the representative seaweed farming area of Sinan County. Looking at the sea, it was not just "half water, half fish" but rather "half water, half seaweed farm."
In Songgong, seaweed farming is done using a fixed method. Long bamboo or plastic sticks are inserted into the ground at 1-meter intervals, and nets are hung on the sticks. This is a seaweed farming method mainly used in shallow waters. During high tide, the seaweed absorbs nutrients from the water, and during low tide, it is exposed to the surface to receive sunlight. This method has the advantage of naturally removing impurities, like sea lettuce, allowing for the production of high-quality seaweed.
Despite being the peak season for seaweed harvesting, fishing boats were hardly visible at sea. Choi Myung-yong commented, "At this time, the sea is usually bustling with boats working," adding, "Although it's also just before the Lunar New Year holiday, this year, as they are not getting a fair price, the fishers are hesitant to work much."
I boarded Choi's boat and went out to sea. The strong sea breeze blew on my face from the direction of the rising sun. After about five minutes of sailing, I noticed a fishing boat shaking seaweed out of its net. On the boat, three people were working to harvest the seaweed. As one person pulled up the net, the other two pulled it from both sides to ensure the seaweed cultivation net was fed well into the shaking machine.
In January, the seaweed harvesting usually takes place from 6 a.m. to 10 a.m., according to Choi. Since the seaweed auction is held at 11 a.m., he said they finish harvesting by 10 a.m. and then move to the port to sort or pack the seaweed. The usual amount of seaweed loaded onto a small fishing boat is about 3 tons. Converted into a 120 kg net, that's about 25 nets.
Choi explained, "Every time we go out, we incur expenses for the charter and labor costs. The wage for foreign workers is 170,000 won. Including meal costs, it adds up to 200,000 won. Considering the cost for two workers and the charter fee, fixed costs alone amount to 600,000 won," adding, "Recently, when the seaweed auction prices were poor, they dropped to below 20,000 won. We're in a situation where the work costs can't even be recovered."
In response to a reporter's question, "If losses occur the more you work, can't you just postpone it?" Choi replied, "If the seaweed is not harvested at the right time, it will rot in the net."
◇ Last year, 200,000 won for a large net of seaweed, this year it's hard to get 40,000 won
Last year, there was chaos due to a lack of seaweed. In early April last year, the retail price of dried seaweed for one pack (100 sheets) was 12,580 won, which was more than a 25% increase compared to the previous year. The price of raw seaweed was also nearing 150,000 to 200,000 won per large net. Prices that had been around 70,000 won during normal years soared to two to three times that.
This was thanks to the increase in seaweed demand due to rising export volumes. Buyers flocked to Korea, where production was relatively smooth due to an abnormal sea temperature phenomenon affecting seaweed production in China and Japan. One fisherman met at the auction site said, "Buyers said, 'It's okay if the quality is poor. It just has to be seaweed.'"
However, these days, the situation is the exact opposite. Even high-quality seaweed finds it difficult to receive last year's prices. On this day, the best quality general seaweed at auction went for 60,000 won per net. If regarded as a product, it could go for about 50,000 won, while mid-tier items went for 35,000 to 40,000 won.
When asking a delivery person moving items purchased by intermediaries to their destination, he mentioned that, at least in the Songgong area, the auction prices are relatively decent. This delivery person noted, "In Koheung, items often don't even sell for 20,000 won and are discarded," adding, "Recently, dozens of nets were disposed of in Seocheon as well."
The reason for the sharp drop in seaweed prices is that supply has increased significantly in comparison to demand. On-site people identify two major reasons for the increase in supply. One is that this winter's warm weather has created favorable conditions for seaweed growth. The other is that following last year's surge in seaweed prices, many began building 'illegal seaweed farms' without permits.
Choi noted, "Isn't it relatively warm for January weather today? Due to the water temperature, seaweed production has increased by about 20-30%." He explained, "Last year, we shook the seaweed nets every 20 days, but this year, we've had to do it every two weeks."
In this regard, the National Institute of Fisheries Science stated, "Due to the high temperature phenomenon in September-October, the timing for collecting seedlings was delayed, leading to a somewhat later seaweed production season, but as of December 2024, the production volume of seaweed has actually increased by about 30% compared to the previous year," explaining, "In the cultivation field, adherence to seedling collection timing has improved, and conditions related to water temperature and nutrients have been suitable for seaweed growth. Damage from strong winds has also been minimal."
Hwang Seong-ho, head of the Yokji Fishing Village cooperative in Jaeun-myeon, Sinan County, remarked, "Last year, seaweed prices were the highest in history. Many people constructed farms without obtaining permits, thinking that they could make a fortune from seaweed farming." Hwang noted, "There were illegal facilities before, but they were limited to adding some minor facilities to existing farms." He added, "In the latter half of last year, more people began to build large-scale illegal farms in the deep sea. We need to strengthen management, monitoring, and penalties for these unauthorized facilities."
◇ The government that was pushing for increased seaweed production is perplexed… "Strengthening crackdown on illegal farming and market monitoring."
The Ministry of Oceans and Fisheries, which was attempting to expand farming permits to increase production in line with rising seaweed demand, has found itself in a difficult situation. Voices are arising on the ground demanding the withdrawal of the government's intended production increase plan.
Following the surge in seaweed demand last year, the government decided to issue new seaweed farming licenses for a total area of 2,700 hectares (1 hectare = 10,000 square meters) nationwide to increase supply. Furthermore, starting this year, it has also allowed the conversion of sites previously used for farming other seafood into seaweed farms.
However, due to climatic factors, seaweed production improved beyond government expectations, and with the rapid rise of unauthorized facilities that are not captured in government statistics, production has reached a level that processing facilities cannot accommodate.
Will the drop in raw seaweed prices lead to a slight decrease in the price of processed seaweed for consumers? Raw seaweed harvested by fishermen is funneled through intermediaries to dried seaweed production companies. Large dried seaweed companies sometimes enter into contracts with intermediaries. These companies wash and dry the seaweed, producing dried seaweed in units of packs (100 sheets). Some of this dried seaweed enters the market, while some goes to processing companies for flavored seaweed.
When asked whether the reduced prices for raw seaweed have affected dried seaweed prices, processing companies expressed confusion. Kim Gap-cheol, an executive at Shinanchunsa Kim, the top production company for flavored seaweed in Korea, stated, "While raw seaweed prices have significantly decreased, the prices for dried seaweed we receive remain at a similar level to last year," adding, "It would normally be expected for dried seaweed prices to decrease with the increase in raw production, but that is not happening."
Dried seaweed companies also voice their difficulties. They note that the volume of raw seaweed being supplied exceeds their production capacity, making it hard to process. While they have secured enough volume, the expenses incurred in purchasing excess quantity to prevent losses for fishermen are not negligible. Kim Hyung-jeong, the representative of Daedohae Fisheries Company in Shinan, remarked, "This is the first time in 30 years that we have experienced this. Until now, the production capacities of raw materials and the factory's dried seaweed production have been coordinated, but this year, even running the factory at full capacity, we can't keep up with the influx of raw materials." Regarding dried seaweed prices, he noted, "It seems there is a difference in timing for when the processed seaweed companies bought their stock; last year, it was 12,000 won per pack, but recently it has dropped to 6,000 won." A Sinan County official added, "Dried seaweed companies also want to quickly release their goods, but they are in a situation where their warehouses are full due to lack of orders," noting, "It seems that the decrease in demand, including for exports, is also having an impact."
The Ministry of Oceans and Fisheries is struggling to devise measures. Hong Raehyung, Director General of Fisheries Policy at the Ministry, stated, "Summarizing the issues raised in the field, the problem of illegal farms is often mentioned," adding, "It is difficult for local governments alone to conduct inspections of illegal farms, so we plan to carry out joint crackdowns."
They will also strengthen inspections at the distribution stage. There is speculation in the field that this might involve purchasing raw seaweed at low prices while adjusting the shipping timing of dried seaweed to maximize profits. There are also concerns about possible collusion among dried seaweed companies. Director General Hong explained, "Last year, during the period when seaweed prices were soaring, we inspected the distribution field for hoarding, but this time, we are looking into whether there are businesses trying to withhold sales and stock."
Regarding support measures for fishermen, he noted, "In Haenam, the fisheries cooperative and local government are collaborating to discard any raw seaweed priced below 40,000 won per large net while providing 40,000 won to the fishermen," adding, "We are considering ways to expand support measures that minimally guarantee fishermen's production costs nationwide."