The South Korean ornamental horticulture industry has faced a significant decline over the past two decades, prompting discussions among industry professionals at the International Association of Horticultural Producers (AIPH) Horticultural Industry Conference. Held on September 19, 2023, in Suncheon, South Korea, as part of the 75th AIPH Annual Congress, the conference shed light on the factors contributing to this decline and proposed solutions.
Dr. Park Kihwan, Research Director at the Korea Rural Economic Institute (KREI), presented an overview of the industry’s trajectory. In 2005, South Korea experienced a peak in its ornamental horticulture industry, with sales revenue reaching 1.105 trillion Korean won. However, by 2021, this figure had decreased to 538.2 billion Korean won, signifying a notable decline.
Mr. Lim Yuktaek, President of the Korea Florist Association (KFA) and Korea Federation of Flower-Related Associations (KOFLAS), attributed the industry’s downturn to the perception of ornamental flowers as luxury expenses. Flowers are primarily associated with special events like weddings, rather than day-to-day purchases. Economic downturns have further exacerbated the reduction in consumer spending.
In response, the South Korean government has initiated various programs aimed at supporting growers and altering public perceptions. Measures include establishing a consultation body for the floriculture industry and providing subsidies to growers for infrastructure investments. Additionally, efforts are being made to enhance distribution systems through electronic flower auctions, increase transparency in the imported wholesale market, and stimulate consumer demand for flowers.
Another significant challenge is the aging demographic of growers, with a 46% reduction in the number of growers from 2000 to 2020. To address this issue, the government is offering leased farms equipped with smart farming technologies to young farmers entering the industry.
Mr. Song Junho, a young grower at the age of 28, shared his passion for the industry and his experiences as a Co-Operator in his family’s agricultural company. Despite initial setbacks in propagation technology, Song’s determination and innovative approach garnered local government support and recognition as Young Farmer 2022.
Rick Nobel, Agricultural Counsellor for the Netherlands Embassy in South Korea, highlighted the trade opportunities arising from the decline in the local floriculture industry. Imports of cut flowers, bulbs, and live plants from countries such as the Netherlands and Colombia have significantly increased. Dissatisfaction among consumers regarding local products, including shorter vase life and higher prices, presents an opportunity for foreign producers to meet the demand for new varieties and colors.
Imports of cut flowers, especially roses, carnations, and chrysanthemums, have witnessed substantial growth in South Korea, aligning with consumer preferences.
The AIPH expressed gratitude to Biblo, 2023 Suncheonman International Garden Expo, MPS, and Royal FloraHolland for their support of the Horticultural Industry Conference during the 75th AIPH Annual Congress in South Korea.