South Korea
BC Softwood Commodity Product Sales in South Korea
(Softwood lumber, plywood, OSB, MDF and Particleboard)
Market type
- 4th largest overseas market for B.C. softwood commodity products after China, Japan, and Taiwan.
- Growing market for B.C. softwood lumber exports (value of exports up 24 percent in 2010).
- Strong potential in the residential housing sector.
B.C. position
- Market leader in supplying softwood lumber with a 17.8 percent share of total imports.
Export sales
- 2010: 278,000 cubic metres of commodity wood products valued at $54.4 million.
- 2011 (through June): 188,000 cubic metres valued at $36.6 million.
Market overview
South Korea became the 6th largest exporter in the world in 2010, up from 9th largest in 2009. The country avoided a recession after the 2008 financial crisis, and the outlook for export growth and domestic demand remains strong for 2011. Korea is the first country in Asia that plans a mandatory cap-and-trade scheme for greenhouse gas emissions, due to start in 2013 if parliament passes the bill in 2011.
Korea remains highly dependant on wood product imports. Over 90 percent of wood products consumed are imported. The small size of the country limits domestic wood supply, even when Korea’s forests mature.
Overall home construction remains at a much lower level than just three years ago, but starts of single-family homes (where wood-frame construction is most established) have increased every year since 2008.
Market strategy
The South Korean economy remained strong in 2010, largely avoiding the effects of the global recession and this contributed to the strength of B.C.’s pulp exports to this market, up 19 percent on 2009. Softwood lumber and panel exports were down slightly on 2009. Multi-family residential construction is an opportunity for B.C. exporters if stringent fire and sound insulation requirements can be met. B.C. remains Korea’s largest supplier of softwood lumber products, primarily structural products, exterior envelope products, and value-added products.
Environmental concerns continue to influence Korean consumers as the government works to address carbon footprint and “sick house” syndrome from non-wood construction methods which dominate city developments. B.C. is working with the industry to position wood frame construction as a sustainable healthy alternative to other building materials and leverage Korean preferences for wood in their traditional home design.
Select accomplishments 2010/11
- Over $17 million in additional wood sales were achieved through tradeshows, advertising and promotional campaigns and the Korean developers attending the Global Buyers Mission in Whistler B.C.
- 3,146 engineers, architects, students and developers received training and education via wood construction and design seminars.
- There was a 236 percent increase in entries to the Korean Wood Design Awards following high profile promotion of the awards within the Korean government and industry.
- OSB products from B.C. were officially recognized under new Korean construction standards.
Activities in 2011/12
Due to economic conditions efforts in Korea have been scaled back slightly in 2011/12; however Canada Wood Group continues to focus on building markets for structural lumber, panel products and value added products. Significant work on codes and standards has been completed to ensure access for B.C. products and the focus of the program has now shifted to expanding niche opportunities for B.C. products. The Korean Government has announced plans to expand housing construction in satellite and second-tier cities to relieve some pressure on key urban centres. This is expected to open opportunities for B.C. producers with long standing ties to the market.
Increasing focus on construction quality control and training for the Korean wood construction industry will ensure that B.C. products are used to their best advantage in multi-family, residential and non-residential construction. Promotions will seek to leverage Koreans’ traditional preferences for healthy, wood construction.
For a more detailed overview of the South Korea market, FII-funded market development initiatives and accomplishments, click here
For access to FII-funded market research and related data for the South Korea market, click here
For B.C.’s current monthly exports of softwood lumber, by species, to South Korea, click here
