Strengthening trade ties and expanding Korean market influence

October 31, 2025 | Aaron Putze, APR

As China continues to stockpile Brazil-sourced soy, Iowa and U.S. farmers are renewing their sales and marketing pitches to customers both old and new.

"We are always looking for new opportunities," says Iowa Soybean Association (ISA) District 2 Director Mike Yegge. "But with the current uncertainty in the export market, we can't afford to take the mature markets for granted."

While much of the attention focuses on growing new and emerging markets, keeping in touch with historically strong markets also remains a priority.

The Republic of Korea, the world's second-largest food bean market and top-five market for U.S. ag exports, is a mature but influential customer. It also hosted Iowa and U.S. soybean farmers during a September trade mission hosted by the U.S. Soybean Export Council (USSEC).

Yegge, who farms near Lake Mills and is serving in his second year as a director, was among the 29-member delegation representing 12 state soybean associations that traveled to Seoul in early September. The itinerary included visits with livestock feed and nutrition suppliers, logistics experts, and U.S. Foreign Ag Service (FAS) trade representatives and a visit to the country's largest soybean processor and producer of soy-based drinks.

Time spent in the country of nearly 52 million consumers coincided with continued market pressures caused by a lack of soybean sales to China, the world's — and America's — top buyer.

In its absence, farmers like Yegge have renewed market development efforts in countries that might not be the largest importers of U.S. soy, but punch above their weight in global influence.

"Selling Iowa farmers' soybeans is ISA's top priority, in both good and challenging times," Yegge says. "We have a plentiful and quality product that needs to find a home and there's no one more qualified to make the pitch than farmers."

Korea ranks second for U.S. food soybeans exports, sixth for soybean oil and tenth for whole soybeans. CJ Cheiljedang and Sajo Daerim, the country’s two soybean crushing facilities, process 1 million metric tons (MMT) annually.

While not a top-tier destination for U.S. soy, the country influences global soybean trade and consumer preferences. Interest in sustainably sourced food ingredients is on the rise. Nearly 85% of Koreans surveyed on the topic expressed its importance. Coincidently, that percentage is equal to the share of its annual food bean imports sourced from the U.S.

Market diversification

The Korean soyfoods market also shows strength and promise as the country's aging population seeks to live longer, healthier and more productive lives. A diversified portfolio of soy-based products, including tofu, sauce, paste and beverages, continue to gain market penetration.
A heightened interest in doing better for the planet also places U.S. soy in a position of strength in Korea and beyond.

USSEC reports 93% of soybeans exported to the Northeast Asia region are certified by the U.S. Soy Sustainability Assurance Protocol, or SSAP. Soy-based products produced and sold in Korea — including tofu, paste and soy-based beverages — and branded with the SSAP logo have surged in popularity as an aging Korean population seeks to live healthier and more productively.

The changing demographics of the country bode well for U.S. farmers as consumption of health products grows — from skin care products to soy-based food and beverages.

Korea is an aging society with the lowest fertility rate in the world. The country's population ages 14 and younger is declining precipitously while the "silver population" will account for 20% of the country's population by 2050.

Marriage and childbirth rates are also decreasing, while the number of one- and two-person households is rising, driving interest in prepared and prepacked foods.

With smaller families and a strong economy, Koreans have growing expendable incomes. Total consumption is growing, including online shopping and food/restaurant patronage. Sectors benefiting most include fresh and processed meats (helping spur imports of U.S. beef and pork), seafood, eggs, and fresh fruits and vegetables.

As they age, Koreans are increasingly concerned about food quality and health benefits. Nearly 80% of Koreans surveyed say they would pay more for the sustainably produced food products.

In addition to health benefits, Koreans value the quality of U.S. soy including physical quality, consistency and refining yield. USSEC's in-country technical and trade services also provide support to customers of U.S. soy while building relationships with a multitude of soy audiences including processors, millers, retailers and customers.

Korea's land area is nearly equal to Indiana, but with 52 million residents. More than 70% of the country's land area is mountains; the remainder divvyed up for ag and its growing urban centers including Seoul and Incheon.

"There simply isn't enough land base to feed its people, which makes the country heavily dependent on agricultural trade," says Shoshana Griffith, Ag Attache for the Foreign Agricultural Service in Seoul, in comments to the U.S. soy delegation.

The U.S. is both Korea's largest ag supplier and export market. More than 50% of total food demand is satisfied via imports, according to Griffith.

Earlier this fall, Korean president Lee Jae Myung met with President Donald Trump to discuss a multi-faceted trade deal. As of early September, terms of the two-part deal were still being developed focusing on expanded trade with the U.S. It also included a $350 billion investment by Korea in the U.S., with a portion of that going to ship building (an amount equal to nearly 20% of Korea's GDP).

While preference for U.S. soy is increasing, soy buyers who mill for pork and poultry production largely determine soy's value based on crude protein levels. Currently, Brazil is the favored supplier as customers scrutinize protein and oil content.

Grant Kimberley, ISA Sr. Director of Market Development, accompanied Yegge to Korea. He says U.S. farmers currently maintain 40% market share for imported beans to be crushed and nearly 80% market share for imported food grade beans.

U.S. market share of soybean meal is just 2 to 4%.

"Bulk purchases are a challenge to compete on price as a lot of the soybean meal is purchased through buyer groups," Kimberley says.

Despite the limited ceiling on growing U.S. soybean exports to Korea, its strong economic and agricultural ties to America matter.

"U.S. farmers benefit from strong pork, beef and whole bean sales to Korea while tapping into the growing health and convenience food markets," Kimberley says. "It also provides momentum we can build upon in support of other markets in Northeast Asia and around the world."

Written by Aaron Putze.

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