Soybean stockpiles hit 88,000 tons, nearly double last year, as imports fall by up to 40,000 tons.

By Kang Woo-ryang, Kim Yun-ju, Kim Mi-geon

The South Korean government, which had encouraged farmers to replace rice with soybeans, is now weighing a reversal by reducing the scale of soybean cultivation.

Officials say the change comes amid a glut of domestic soybeans, with production outpacing the development of new markets. Because the government has purchased most of the soybeans grown in paddy fields for stockpiling, it cannot release them at lower prices without destabilizing the market. At the same time, a reduction in soybean import quotas intended to boost local consumption has led to shortages of foreign beans. Critics argue that by focusing narrowly on curbing rice overproduction, the government has mishandled soybean supply and demand.

The Korea Rural Economic Institute said on Aug. 18 that soybean cultivation in rice paddies is estimated at 32,920 hectares this year, up 46.7% from 22,438 hectares in 2024. The sharp increase followed the government’s 2023 decision to classify soybeans as a “strategic crop,” offering farmers 2 million won ($1,440) per hectare if they planted beans instead of rice.

Authorities also created mechanisms to stabilize prices. The government pledged to purchase up to 60,000 tons annually for reserves and bought all paddy-field soybeans from farmers who chose to sell. Officials argued that without such guarantees, falling prices caused by increased production would erode farm profits, eliminating incentives to shift away from rice. In July, the wholesale price of soybeans reached 231,280 won ($166) for a 40-kilogram sack, a 4.1% increase from 222,200 won a year earlier.

But stockpiles have nearly maxed out storage capacity. At the beginning of 2025, reserves totaled 88,000 tons—almost 80% higher than the 49,000 tons held a year earlier. Although small amounts have been released, inventories remain above 80,000 tons.

The government’s move to scale back soybean cultivation has sparked backlash from farmers. Yoon Kwan-ho, secretary general of the Korea Central Association of Field Co-op, said many growers invested hundreds of millions of won in combines, tractors and other equipment designed for paddy-field soybeans. “Telling farmers to now reduce cultivation shifts all responsibility for oversupply onto them while the government tries to wash its hands of the matter,” he said.

Officials are at the same time scrambling to drive demand for domestic soybeans. The Korea Agro-Fisheries & Food Trade Corporation (aT) this month commissioned a 9.6 billion won public relations campaign to promote local beans. Beginning in September, the campaign will highlight health benefits on television programs and enlist YouTube and TikTok influencers to encourage consumption.

On Aug. 14, Minister of Agriculture, Food and Rural Affairs Song Mi-ryeong visited food company Pulmuone Corp., to urge it to replace imported beans with domestic ones. The government has also decided to end its full-purchase guarantee for paddy-field soybeans starting in the second half of this year. Still, analysts note that finding large-scale new markets for Korean soybeans within one to two years will be difficult, making cultivation adjustments unavoidable.

The import reduction policy has also come under fire. Earlier this year, the government cut annual import volumes from about 280,000 tons by 30,000 to 40,000 tons. But most tofu makers are small firms unable to absorb the higher costs of domestic beans. The Korea Soybean Foodstuffs Association said Korean soybeans cost more than 5,000 won ($3.6) per kilogram—about triple the 1,400 won ($1) production cost of imports. Even with subsidies, prices are expected to remain near 3,000 won ($2.20) per kilogram. Officials at the Korea Soybean Food Processing Association said supplies of imported soybeans could run out as early as October.

Published Date: August 20, 2025