Recently, soybeans have stood at the center of major political and economic issues. In the tariff war between the United States and China and during the Korea-U.S. agricultural tariff talks, U.S. soybeans emerged as a key sticking point. Farmers and tofu makers in Korea are also on high alert over the possibility of expanded soybean imports.
According to the government and related industries on the 26th, in Apr., the United States imposed high tariffs on China. It began when U.S. President Donald Trump declared he would raise tariffs on the world. China did not sit idle. Since May, China has completely halted imports of U.S. soybeans. Instead, it has been importing soybeans from Brazil.
As this situation continued for five months, total U.S. soybean exports plummeted. According to the U.S. Department of Agriculture (USDA), of the United States' total soybean exports of $24.47 billion in 2024, $12.64 billion, or 52%, went to China. However, recently, U.S. soybean exports to China were reported to have plunged 51% from a year earlier. From the U.S. perspective, it means it is in a situation where it has to sell the remaining soybeans somewhere.
In this context, soybeans appeared on the Korea-U.S. tariff negotiation table. Wi Sung-lac, presidential Office of National Security chief, said, "(During the Korea-U.S. agricultural tariff talks held on the 17th) the soybean issue was mentioned." It is known that the background was that major soybean-growing regions in the United States are in the Midwest, a stronghold of President Trump's base.
The results of the tariff talks have not yet come out. But the debate over soybeans is likely to unfold in Korea. The agricultural sector is already looking at the situation with a critical eye. It is tied to the issue of further opening the agricultural market. Moreover, soybeans had been designated a strategic crop, and the state had been encouraging cultivation. The agricultural sector is already raising its voice, saying, "We switched crops, trusting the government's call to plant soybeans instead of rice, and expanding imports betrays farmers."
The food industry takes a somewhat different view, especially small and mid-sized tofu makers. They say tofu production has become difficult as the government reduced the volume of imported soybeans. This year's supply of imported soybeans is 270,000 tons, down 5.6% from a year earlier. The government's plan was to make up the shortfall with domestic soybeans, but the industry says that is not feasible, mainly because of price. Imported soybeans are around 1,400 won per kilogram, while domestic soybeans are 5,000 won per kilogram.
An official at a small tofu maker said, "Imported soybeans are awarded through public auctions, and large companies have a far greater advantage in terms of volume and price," adding, "If we cannot get imported soybeans and have to make up the shortfall with domestic soybeans, we have no choice but to raise consumer prices." An official at another manufacturer said, "Consumers are highly sensitive to tofu prices, so if we suddenly raise prices, consumers will not open their wallets," adding, "The (government's) decision to sharply reduce soybean import volumes is causing problems in the market."
As such, the issues surrounding soybeans go beyond a simple discussion of agricultural imports and are a complex matter intricately tied to international dynamics, domestic industry, and consumer prices. Depending on what decisions and choices the government makes going forward, the survival of farms, the competitiveness of the food industry, and prices at our table are all expected to be affected.