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More alarming is the fact that Beijing has "banned" the import of kimchi from Seoul by radically toughening regulations on imported food.
No domestic kimchi maker has sold its product into the Chinese market so far this year, according to the Korea Agro-Fisheries and Food Trade Corporation (aT).
Japan is the biggest buyer of Korean kimchi, followed by the United States and China.
Last year alone, the neighboring country's imports amounted to $84.58 million, accounting for nearly 80 percent of the entire kimchi exports.
Exports to Japan between January and May last year were estimated at $36.91 million, but it plunged by 19.2 percent during the same period this year, the biggest drop since 2007, according to the Korea Customs Service.
The sharp drop is largely attributable to a weak Japanese currency, experts said.
The monetary policy, initiated by Japanese Prime Minister Shinzo Abe to revitalize his country's sagging economy, has resulted in kimchi importers there spending more money to buy Korean kimchi.
Considering this, they are turning their eyes to China to buy the products cheaper. Dozens of kimchi makers in Shanghai and Qingdao are ramping up efforts to increase their exports to Japan using their competitive advantage in price.
"The situation is very serious," an analyst said. "It's good news to see a single-digit drop in sales. A great number of domestic (Korean) kimchi makers have found their sales down by 20-30 percent this year."
Beijing's new sanitation rule is also to blame. The new rule adopted this year is too tough to pass, domestic producers complained.
"Perhaps the Chinese government is aware that the new rule is strict," said an official at the Ministry of Agriculture, Food and Rural Affairs. "I think this is a strategic move aimed at supporting Chinese kimchi makers."
Baek Yoo-tae, an aT official, echoed the view, saying "The tough time will continue unless China softens the rule."