Research Reports
Current Status of the Ginseng Industry in China and its Fostering Policy : Focusing on Three Northeastern Provinces of China
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AuthorPark, Kihwan
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Publication Date2014.03.30
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Original
Korea's ginseng industry is a high return industry that is currently growing. It was recognized as an prospective item that could respond to the opening of the market and maintained continuous growth until 2009, but since then, new areas for growing ginseng were reduced. Furthermore, in the event that tariffs are lowered through the Korea-China FTA that is currently being pursued, it is expected that increased imports of Chinese ginseng will have a very big impact on the Korean ginseng industry. Therefore, it is necessary to identify China's current ginseng farming and production status and features, distribution and processing, and fostering policies of the ginseng industry in the main ginseng cultivation areas. It is necessary to examine them focusing on the three northeastern provinces of China, which are the main cultivation regions.
Chinese ginseng is completely different from Korea's Goryeo ginseng in terms of cultivation, processing, and consumption methods. However, the Chinese ginseng industry has been making plans for the ginseng industry's development such as converting to flatland cultivation and expanding development for ginseng derived food. Also, Jilin, which is a major ginseng growing area of China, has been producing the same variety as that of Korea's Goryeo ginseng, thus forming a competing relationship in the international market.
Moreover, in order to support the ginseng industry, the Chinese government established the Changbaishan Ginseng Museum to promote the excellence of Chinese ginseng. The Jilin Province government has invested policy funds to provide full support for the development of the Changbaishan ginseng brand. Due to such active support of the central and provincial governments, Chinese ginseng is developing at high speeds and thus, competition with Korea is expected to become fiercer.
In particular, if ginseng is not selected as a sensitive item during the Korea-China FTA negotiations that are currently under way, there is a high possibility that more Chinese ginseng will be imported to Korea due to the lowered customs tariffs.
Therefore, by continuously monitoring the trends of the Chinese ginseng industry and the Chinese government's ginseng industry fostering policies, it is necessary to analyze how competition with Korea will unfold in the international market, and efforts should be made to select ginseng as a sensitive item during Korea-China FTA negotiations.
Researchers: Ki-Hwan Park, Seong-Yoon Heo, Li Jinghu
Research period: 2013. 10. ~ 2014. 3.
E-mail address: kihwan@krei.re.kr
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