Seasoned 'gim' exempt from US tariff

Seasoned gim, or dried seaweed, products are displayed inside a supermarket in Seoul, Sunday. Yonhap

Exports of seasoned gim, or dried seaweed, are gaining momentum as the United States — a major global market for the Korean product — began exempting it from tariffs last month, the government said Sunday.

According to the Ministry of Oceans and Fisheries, the U.S. government lifted a 15 percent tariff on Korean gim, allowing it to enter the U.S. market at a zero percent tariff starting Nov. 13. The ministry added that the measure was part of the joint fact sheet on a bilateral trade and security agreement following President Lee Jae Myung’s summit with U.S. President Donald Trump in October.

The joint fact sheet states that the U.S. intends to remove tariffs on certain natural resources that are not produced domestically, making seasoned gim a beneficiary of the policy. Unseasoned gim, however, remains subject to a 15 percent tariff in trade with the U.S.

The U.S. has been a critical global market for Korean gim, driven by its popularity among American consumers. Korean gim exports to the U.S. totaled $228 million through November this year, up 15.9 percent from a year earlier. About 90 percent of those exports were seasoned products — precooked with additives such as salt and sesame oil.

The U.S. accounted for 20 percent of Korea’s global gim exports this year. Total exports to major markets including China, Japan, Thailand and Vietnam reached $1.04 billion through November, marking a 13.3 percent year-on-year increase. This is the first time annual exports of the product have surpassed $1 billion, and the government expects the figure to hit a record $1.1 billion by year-end.

The Korean government said it is currently in talks with the U.S. to exempt Korean unseasoned gim and tuna fillets from U.S. tariffs.

Dongwon F&B, CJ Seafood and Sajo are among the leading Korean firms exporting gim. Major importers in the U.S. include distributors of Korean food products as well as local companies that sell private-label gim supplied by these Korean firms.