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Why is fruit expensive in Korea?

Published in Korean Economy 1 min read

Fruit is expensive in Korea primarily because of limited arable land and high production costs.

Here's a breakdown of the contributing factors:

  • Limited Arable Land: South Korea is a mountainous country, with approximately 70% of its land unsuitable for farming. This scarcity of farmland drives up the cost of production.
  • High Production Costs: Factors contributing to high production costs include:
    • Labor: Wages in South Korea are relatively high, impacting the cost of labor-intensive agricultural practices.
    • Land Costs: The limited availability of farmland inflates land prices, adding to production expenses.
    • Intensive Farming Practices: To maximize yields on limited land, Korean farmers often employ intensive farming techniques, which can involve higher input costs (fertilizers, pesticides, etc.).
  • Import Restrictions: Some import restrictions aim to protect domestic farmers, but this can also limit the supply of fruit and keep prices high.

In summary, the combination of limited space, high costs of production, and import factors make fruit a relatively expensive commodity in South Korea.

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