Korean ginseng (Panax ginseng) is one of South Korea’s most recognizable agricultural exports, spanning raw roots, semi-processed slices, and a wide array of high-value functional foods and beverages. Below is a deeply detailed, practical guide to how Korean ginseng moves across borders—what gets counted in trade statistics, which markets buy it, which rules matter, and what it takes to succeed internationally.
1) What exactly is being exported? (Products & HS codes)
In customs data, ginseng ships under multiple headings. Understanding these is essential because only the raw/root trade appears in the core ginseng HS line; most value-added “red ginseng” products are hidden inside broader processed-food categories.
- Raw roots (fresh/dried): HS 121120 — “Ginseng roots, fresh or dried (whether or not cut, crushed or powdered).” This is the cleanest lens on roots trade and is the line most trade dashboards display when you search “ginseng” by product.
- Extracts/concentrates: Commonly declared under HS 130219 (“other vegetable saps and extracts”) when labeled as ginseng extract. Country practice varies, but Korean red ginseng concentrate often falls here.
- Finished functional foods (candies, drinks, tonics, jellies, capsules): Typically HS 210690 (“other food preparations”) or HS 2202 (non-alcoholic beverages). These categories aggregate many non-ginseng products, which is why published “ginseng market size” and “ginseng export” numbers can look inconsistent.
Takeaway: When you see a single “export value for ginseng,” check whether it’s talking about roots only (HS 121120) or processed products as well (HS 1302/2106/2202). The difference is big.
2) How much does Korea export—and how is it trending?
- Roots (HS 121120): In 2023, Korea exported ≈ $91.8 million and ≈ 398 metric tons of ginseng roots—placing Korea among the top three root exporters worldwide. (Canada and China are the other two leaders.)
Note: Some commercial aggregators that blend methodologies show a lower figure (e.g., OEC: ~$64.4 m), which illustrates why it’s important to confirm the exact product scope and source. - Processed “red ginseng” products: Korea’s government and industry bulletins periodically report exports of value-added ginseng foods rising faster than raw roots. For example, the Ministry of Agriculture (MAFRA) reported USD 152.8 m in overseas shipments of Korean ginseng products in H1 2024, indicating steady growth in finished goods even as competition intensifies.
Why the discrepancy between numbers? HS 121120 tracks roots only; processed red ginseng products are mostly recorded under other HS chapters—so “ginseng exports” can easily be undercounted if you look only at 121120.
3) Where does Korean ginseng go? (Top destination markets)
Root-trade dashboards show Korea’s ginseng roots moving primarily within Asia and North America, with notable re-export activity through hubs: China, Hong Kong, Japan, the United States, and Southeast Asia. The WITS global exporter table for 2023 confirms Korea’s scale in roots; Hong Kong’s own large flows reflect its role as a re-export/transshipment market into Greater China and beyond.
Beyond roots, value-added red ginseng foods are widely distributed by Korean brands (e.g., CheongKwanJang/KGC) through pharmacies, health-food chains, duty-free, and cross-border e-commerce—often in 20+ countries with localized registrations and halal/kosher certifications where needed.
4) The regulatory bedrock (Korea): MFDS standards & claims
Korean red ginseng is governed domestically by the Health Functional Food Act and the Health Functional Food Code administered by the MFDS. Among the most important elements:
- Quality markers: MFDS uses the sum of ginsenosides (Rg1 + Rb1 + Rg3) as the principal marker set for red ginseng functional ingredients and labeling/standardization. (Academic and regulatory summaries cite these as the canonical markers for QC.)
- Recognized functions/claims (Korea): Over time MFDS has recognized functions such as support for immunity, fatigue relief, blood flow via inhibition of platelet aggregation, memory, antioxidant, menopausal health, and—per a 2022 revision—liver-health support (subject to product-specific compliance).
- Labeling & manufacturing: The MFDS Code and Food Labeling Standards outline how functional foods must be manufactured, tested, and labeled, including product-type naming, irradiated-ingredient limits, and sampling/testing protocols.
Exporter implications: Products claiming MFDS-recognized functions tend to command price premiums overseas—but claims must be translated carefully to meet import-country rules (see §6).
5) A 2024 milestone: the U.S. opened to fresh Korean ginseng roots
As of June 24, 2024, the U.S. APHIS formally authorized the importation of fresh Korean ginseng roots (Panax ginseng) subject to specified phytosanitary measures (post-harvest handling, pest freedom, inspection, etc.). This change followed a multi-year pest-risk analysis and notice-and-comment process. It creates a new channel beyond dried roots and processed foods long sold in the U.S. market.
For context, APHIS noted the U.S. typically imports ~110–540 MT of fresh/dried ginseng roots annually (mostly from China/Hong Kong/Canada) and anticipated modest volumes from Korea initially (Korea signaled ~2 MT/yr in its request).
6) What rules govern exports and imports internationally?
6A. Plant health & inspection
- Korea’s plant quarantine authority (APQA/QIA) performs field/consignment inspections and issues phytosanitary certificates to meet the import requirements of destination countries. Treatments/conditions follow the importer’s rulebook.
6B. CITES considerations
- CITES listings do not generally apply to Korean ginseng (Panax ginseng) from Korea. CITES lists Panax ginseng only for the Russian Federation population, while American ginseng (Panax quinquefolius) is globally Appendix II. Exporters sometimes confuse the two; for Korean-grown P. ginseng, CITES permits are not required.
6C. Food law & claims in destination markets
- United States: Red ginseng foods are generally regulated as dietary supplements/foods under DSHEA/FDA rules; labeling/claims differ from Korea’s MFDS regime. (Separately, the APHIS decision governs fresh root phytosanitary entry.)
- European Union: Sales are feasible, but health claims are narrowly controlled by EFSA; most ginseng claims are not on the EU authorized list, so marketing must be carefully phrased as general well-being or traditional use unless an authorization applies. (General EU–Korea trade context here.)
- GCC/SEA/Other Asia: Registration is usually required for functional foods; halal and local language labeling are common gatekeepers.
7) Tariffs, FTAs, and certificates of origin
Korea’s extensive FTA network (KORUS with the U.S., Korea–EU FTA, Korea–China FTA, Korea–ASEAN FTA, CEPA with India, participation in RCEP, etc.) can reduce or eliminate tariffs for eligible goods that meet rules of origin and are backed by proper Certificates of Origin.
Exporter checklist (trade docs likely to be requested): commercial invoice, packing list, phytosanitary certificate (for roots/plant materials), certificate of origin under relevant FTA, transport documents (B/L or AWB), and—where applicable—health/registration certificates for finished foods.
8) Supply, processing, and why Korea competes on quality
Korea is a historic ginseng producer with robust upstream agronomy and downstream processing. Academic and historical reviews place Korean fresh-ginseng output in the tens of thousands of tons annually (with earlier references noting ~27,000 t in late-2000s), much of which is processed into red ginseng (steamed and dried) and high-purity concentrates. While precise, current-year production fluctuates, Korea’s processing yield and standardization around Rg1/Rb1/Rg3 underpin international acceptance and pricing power.
Large brands—Korea Ginseng Corporation (CheongKwanJang) being the most internationally distributed—invest in R&D, analytical labs, and multi-country certifications (e.g., halal, kosher) to scale exports without diluting quality.
