By Yoon Ja-young



Demand for imported beef is rapidly rising, while that for relatively expensive local beef is decreasing following the implementation of an anti-graft law.



According to the Korea Customs Service, imports of beef recorded 320,219 tons between January and October this year, surging 28.4 percent from a year ago.



Imports from the United States surged especially, jumping 47.6 percent from a year ago to 131,466 tons. Imports of Australian beef, which makes up the biggest share in the imported beef market, meanwhile, increased 14.9 percent to 162,794 tons.



Behind the surging beef imports is the anti-graft law, which went into effect in September. It restricts government officials, journalists and private school teachers from receiving paid for meals costing more than 30,000 won ($25.7) or a gift of over 50,000 won.



The measure hit restaurants that served local "hanwoo" beef, as it is difficult to meet the 30,000 won price cap with relatively expensive meat. It also changed traditional holiday gifts. Hanwoo was one of the most popular gifts for the traditional holidays of Chuseok and Lunar New Year's Day, but the 50,000 won price cap made Koreans think twice before choosing it. As a result, demand for hanwoo has been falling while imported beef has been increasing its market share. Korean beef, which made up 50.1 percent of the market in 2013, dropped to 46.2 percent last year.



Market watchers expect that imported beef will continue to substitute for hanwoo due to the law. As consumers increasingly prioritize price, demand is also likely to be affected. The Nonghyup Research Center expects the market share of local beef to fall below 40 percent this year.



Retailers report that imported beef has already caught up with hanwoo in sales. According to a retail outlet E-Mart, hanwoo took 45.2 percent of its beef sales so far this year as of November, which is smaller than the 54.8 percent market share of imported beef. This compares with two years ago when hanwoo took up 54.9 percent of sales. The sales of hanwoo at E-Mart fell 12.7 percent this year as of November.



"Though the price of hanwoo has been falling recently, consumers still think it is expensive, and an increasing number of them are switching to imported beef," said Oh Hyun-jun, an E-Mart hanwoo buyer.



