The government is promoting the establishment of an international dried seaweed transaction center. Recently, seaweed has become popular worldwide, but a systematic seaweed distribution system is lacking. The Ministry of Oceans and Fisheries plans to establish the international dried seaweed transaction center led by the government and consolidate overseas importers with dried seaweed producers.
According to relevant departments on the 27th, the Ministry of Oceans and Fisheries will carry out a service to enhance the efficiency of international dried seaweed transactions, and based on this, plans to establish a government-led international dried seaweed transaction center. They are also reviewing measures to stipulate the operational methods of the international dried seaweed transaction center and support plans in relation to the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, the Fisheries Cooperative Act, and the Fishery Product Distribution Act.
The reason the Ministry of Oceans and Fisheries is pushing for the establishment of an international dried seaweed transaction center is due to the practice of "dark transactions." Currently, dried seaweed producers purchase raw seaweed to produce dried seaweed and sell it to domestic distributors or overseas importers. Overseas importers can buy quantities from various dried seaweed manufacturing and distribution companies and know the market price of the production area, but dried seaweed producers find it difficult to clearly understand the prices of seaweed based on quality. Due to the lack of clear standards such as seaweed grades, the prices of seaweed fluctuate according to negotiations between importers, distributors, and producers.
The government believes that "due to the asymmetric structure of information and the lack of a seaweed grading system, dried seaweed producers are not receiving fair prices." Therefore, they plan to encourage overseas importers and dried seaweed producers to engage in transactions through the international dried seaweed transaction center. The Ministry of Oceans and Fisheries noted, "The transaction center will help establish a price-transparent seaweed market so that producers receive fair prices," adding, "It is also expected to contribute to stabilizing the supply and demand of domestic and international seaweed."
The government also plans to seek alternatives by referring to the case of the international dried seaweed transaction center operated independently in Seocheon County. In early last year, Seocheon County opened the international dried seaweed transaction center, inviting overseas importers and domestic dried seaweed producers to conduct transactions. However, after two trial operations, it closed due to budget constraints. At that time, dried seaweed producers in Chungcheongnam-do were reportedly not active in participation as they already had distributors or overseas importers with whom they were trading. Additionally, producers expressed difficulties in purchasing raw seaweed due to the delayed settlements compared to the existing spot transactions. Lee Jae-young, president of the National Dried Seaweed Producers Association, emphasized, "For the international dried seaweed transaction center to succeed, it is crucial that many producers and importers participate."
The government plans to link the seaweed quality grading system to the international dried seaweed transaction center. They will also reference Japan's case, which has established both a seaweed quality grading system and a seaweed transaction center. Japan categorizes types of seaweed into snack seaweed, sushi seaweed, and side dish seaweed, managing grades accordingly. When an inspector assigns a grade, a system for trading dried seaweed based on that grade is in place. A Ministry of Oceans and Fisheries official stated, "In Japan's case, raw seaweed producers are also processing, which is different from the distribution structure in Korea," adding, "We plan to reference this for the operational methods of the international dried seaweed transaction center."