South Korean Squid Prices Soar! The Government Approves 10,000-ton Fishing Vessels To Fish For Argentine Squid in The Southwest Atlantic.

South Korea's domestic squid supply continues to tighten, leading to a rapid rise in prices. To alleviate market pressure and expand deep-sea fishing capacity, the South Korean Ministry of Oceans and Fisheries has approved several large deep-sea trawlers to fish for Argentine squid (Illex argentinus) in the Southwest Atlantic. This move is not only seen as an important means of stabilizing domestic prices but has also sparked discussions within the industry regarding resource competition and ecological impact.

According to South Korean government and industry sources on March 2, the Ministry of Oceans and Fisheries issued new operating permits on February 9 to four large deep-sea trawlers, allowing them to fish for squid in the high seas of the Southwest Atlantic. This area, located between Argentina and the British-controlled Falkland Islands, is designated as Fishing Zone 41 by the United Nations Food and Agriculture Organization (FAO). As no Regional Fisheries Management Organization (RFMO) has yet been established in this area, fleets from countries including China, Spain, and South Korea are currently engaged in fishing activities there.

The permitted vessels include the 7,700-ton ocean-going trawler "Sejong" from Dongwon Fisheries, which previously primarily fished for krill in the Antarctic Ocean but has now shifted its operations to the Southwest Atlantic. Additionally, the "Namku" from Namku Fisheries, the "99 Aoyang" from Sacho Aoyang Fisheries, and the "Junseong" from Hansen Enterprises will also join the fishing effort. The South Korean government also plans to deploy more ocean-going vessels that previously fished for cod in the North Pacific to the fishing grounds starting next year.

The Southwest Atlantic is a significant source of squid for South Korea and Argentina. The Korea Marine Research Agency states that a considerable portion of the squid consumed domestically in South Korea comes from this region. Currently, two approximately 500-ton trawlers and eleven approximately 3,000-ton trawlers are operating in the area with government permits. With the addition of vessels of this size, South Korea's fishing capacity in the region will significantly increase.

The South Korean government's push to expand deep-sea fishing is directly related to the decline in domestic coastal resources. In recent years, sea surface temperatures in the East Sea have risen by about 2 to 4 degrees Celsius, leading to a significant decrease in local squid resources. Data from the National Statistics Portal of Korea shows that the total squid catch along the coast and in coastal waters of South Korea fell from 60,880 tons in 2021 to 31,006 tons last year, a decrease of nearly half in four years. During the same period, deep-sea catches also decreased from 73,867 tons to 52,122 tons.

Declining supply has driven a rapid rise in market prices. According to the "2026 Fisheries Economic Outlook" released by the Fisheries Economic Research Institute of the Korea National Federation of Fisheries Cooperatives, the consumer price of frozen squid in South Korea rose from 15,260 won per kilogram in 2021 to 20,108 won last year, an increase of 31.8%. In the South Korean market, squid prices have recently been dubbed "golden squid."

The South Korean government anticipates that the addition of large trawlers will increase squid production by approximately 2,000 tons this year, potentially reducing consumer prices by about 10%. As part of price stabilization measures, the government has stipulated that these additional catches can only be supplied to the domestic market.

However, this policy has sparked controversy within the South Korean fishing industry. Some small and medium-sized fishing companies believe that the entry of large corporations' 10,000-ton trawlers into the same fishing grounds will significantly alter the competitive landscape. Yoon Dong-ho, chairman of the Southwest Atlantic Squid Trawling Commission, stated that most of the 29 vessels currently operating in the region are approximately 500-ton trawlers; once 8,000-ton vessels enter the market, smaller companies will find it nearly impossible to compete.

Environmental organizations have also expressed concern, arguing that expanding fishing operations in areas lacking regional fisheries management oversight could increase pressure on marine ecosystems. In recent years, Argentina's squid fishing intensity has remained consistently high, with a trend towards smaller catch sizes and a rising proportion of small- and medium-sized products in the market.

The South Korean government defended its policy from the perspective of resource rights. An official from the Ministry of Oceans and Fisheries stated that if a regional fisheries management organization is established in FAO Area 41 in the future, historical fishing records of each country will become an important basis for quota allocation; therefore, South Korea needs to accumulate fishing data and operational experience in advance.

The official also pointed out that approximately 60,000 tons of squid caught by Chinese fleets in the Southwest Atlantic are currently imported into the South Korean market annually. In the government's view, expanding the scale of its domestic fleet is both to ensure supply and to prepare for quota negotiations in the future international fisheries governance framework.