This is the second year report of the two-year collaborative research entitled 'A study on the agricultural export promotion strategies', which is led by the Korea Council of Economic and Social Research Institute. The purpose of this study is to establish some effective agricultural export promotion strategies.

Various factors that affect Korean agricultural export have been analyzed by the Gravity model and found out GDP of the importing country and spacial distance from Korea were positively related with export amount. Also, government expenditure for export marketing increases agricultural exports.

In this study, emerging export markets were classified by four types; growth-potential neighboring market, growth-potential long distance market, hetero-geneous culture market, and fast-growing neighbor market. After selecting export promising product for each type of market, this study established export marketing strategies through the Conjoint Analyses and market-share simulations. Also, this study provided export pricing strategies for each market by the Price Sensitivity Measurement(PSM).

As a conclusion, this study provided some measures to expand agricultural export markets as follows;
First, organization and collectivization are needed to overcome the limits of small-scale structure of Korean agriculture. Flexible and various rather than uniformed policies should be applied to this process since the environment and conditions are very different according to the farms, products, and the locations.
Second, restructuring of agricultural export industry should be enforced by the government and the industry themselves in order to expand export markets. Since the scale of exporting companies are too small to sustain in the market, they can't establish strong brand power of Korean agricultural products in the overseas market. Through the entry into and exit from the market according to its principle, they need to merge into the large and specialized enterprises.
Finally, government export promotion support should be indirect and long-lasting rather than direct and one-time exhausting ones. For example, current expenditure for export logistic would be better to transit to the support for construction of export infrastructure such as cold chain, proccessing facilities, and common warehouse, etc. Support for overseas marketing and buyer invitation costs can also be considered as export infrastructure expenditures which would lead to the self-sustainable exporting farms and company.


Researchers: Myong-Keun Eor, Kyung-Phil Kim, Hyoung-Jin Jeon, Han-Pil Moon, Jung-Hee Han, Ji-Yong Lee
Research Period: 2011.1~2011.12
E-mail address: myongeor@krei.re.kr