South Korean rice exports to Japan are gaining momentum, with total shipments expected to hit 830 tons in 2025 as a supply shortage continues to drive up demand across Japan.

According to Nonghyup Trading (NH Trading) and other sources on Tuesday, Korea exported 185 tons of rice to Japan in just over a month. The shipments began in April 2025 with two tons from Nonghyup’s Haenam Okcheon cooperative, followed by 62 more tons from Haenam and an additional 120 tons from other member cooperatives.

“An additional 650 tons is confirmed for export, bringing the total volume of Nonghyup rice heading to Japan this year from Haenam, Gangjin, and Hadong to around 830 tons,” a Nonghyup Agribusiness Group official said.

Korea’s rice exports to Japan were virtually nonexistent until 2024, with Japan typically maintaining a rice surplus and imposing high tariffs to limit access for Korean products. However, a combination of poor harvests, panic buying, and increased demand from tourists for sushi has doubled rice prices in Japan, creating new opportunities for Korean exporters.

Citing trade data from Japan’s Ministry of Finance, Japanese news outlet Asahi Shimbun reported that Japan imported 6,838 tons of rice in April alone – more than double the 3,011 tons imported during the entire previous 12-month period from April 2024 to March 2025. Imports from the United States accounted for about 80 percent of the total, followed by those from India, Thailand, and Vietnam.

According to Japan’s Ministry of Internal Affairs and Communications, rice prices in April 2025 rose 98.4 percent year-on-year. Inflation has continued to accelerate despite the government releasing public reserves to ease pressure, with rice price increases of 70.9 percent in January 2025, 80.9 percent in February, and 92.1 percent in March. Japan’s Ministry of Agriculture, Forestry and Fisheries noted that the price of a five-kilogram bag of rice, which was about 2,000 yen ($13.89) in early 2023, has recently surged to around 4,200 yen.

As domestic prices rise in Japan, Korean rice has become cost-competitive even after tariffs, shipping, and labor costs are calculated. “Shipping to the United States takes three weeks and to Europe, two months, but deliveries to Japan take just three to four days. We believe this new wave of rice exports will be a game changer for Korea-Japan economic cooperation,” an NH Trading official said.

NH Trading’s Japanese subsidiary, National Agricultural Cooperative Federation (NACF) International Co., sells some of the imported rice directly via its online store and supplies the rest to Japanese wholesalers and retailers. Korean rice has consistently sold out on its platform shortly after listing.

NACF International currently sells a four-kilogram bag of Korean rice for 4,108 yen, with the same quantity costing just over 20,000 won, or around $14.51, in Korea. Import tariffs add about 1,364 yen, with transportation, labor, and distribution margins also factored into the final price. A Nonghyup Agribusiness Group official stated that exports are proceeding with appropriate profit margins and rejected claims that the rice is being sold at a loss.

While exports to Japan are growing, their impact on Korea’s structural rice oversupply remains limited as domestic consumption continues to fall while production levels remain steady. The Korean government spent 2.6 trillion won ($1.9 billion) from 2021 to 2024 to purchase an average of 310,000 tons of rice annually in a bid to stabilize the domestic market.

According to a recent audit by the Board of Audit and Inspection of Korea on agricultural imports and grain purchases, Nonghyup spent a total of 4.6 trillion won between 2014 and 2023 to isolate surplus rice from the market. The government has repaid 1.14 trillion won in principal and 602.8 billion won in interest to date, with 3.5 trillion won in principal still outstanding.By Moon Ji-woong and Chang Iou-chung

Published Date: June 4, 2025