ECONOMIC RELATIONSHIPS BETWEEN AQUACULTURE AND CAPTURE FISHERIES IN THE REPUBLIC OF KOREA

Wild fish species are becoming scarcer and their market prices significantly increasing due to limited natural resources and increasing demand for sea food. In recent years, the Republic of Korea's (South Korea's) marine aquaculture production of finfish has drastically increased while prices have declined. This study conducts a comparative analysis of the economic relationships between wild-caught and farmed fish species, examining the relationship between fish price and supply resulting from the development of marine aquaculture. Major marine aquaculture species, in particular the most favored sashimi species in Korea, are evaluated. These are: flounder (Paralichthys olivaceus), black rock fish (Sebastes schlegeli), red sea bream (Pagrus major), and grey mullet (Mugil cephalus). This paper illustrates that the prices for both wild-caught and farmed fish declined as the farmed products entered the market and production expanded. However, the magnitude of price changes varied by species depending on if the farmed species has the same value or substitute value as the wild-caught fish and the development of aquaculture technology. The study shows aquaculture seems to play a role in helping to meet the demand for fish and can reduce the pressure on wild-stock fisheries.