Dried Pollack

[Anchor Lead]

Yongdae-ri in Gangwon-do Province produces more than 70 percent of dried pollack in Korea. But this year the production of dried pollack plunged 15 percent compared to last year. Here's more.

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This restaurant with a 30-year tradition specializes in dishes made of dried pollack. But these days the place is deserted even during lunchtime. Located by a national highway, the restaurant used to be packed with customers, and oftentimes they had to wait in line to be seated. However, things changed after a new expressway was built in the area two years ago. The restaurant's sales plummeted to just one-third.

[Soundbite] Lee Jong-gu(Owner of dried pollack restaurant) : "It's no exaggeration to say that business in this area has been crushed. Once after the opening of the expressway we did not have even a single customer. This never happened before."

The situation is similar in other nearby restaurants. They are seeing few customers lately. With many restaurants across the nation struggling due to the economic downturn, the production of dried pollack has also plunged. That's because 60 percent of dried pollack is consumed at restaurants. This year, Yongdae-ri, the main producer of dried pollack in Korea, produced only 19 million fish, down 15 percent from last year. To make things worse, exports to the U.S. have also hit a snag.

[Soundbite] Choi Yong-jin(Yongdae Dried pollack Association) : "Last year we received export deals worth one million dollars, but this year we have nothing. No one knows at this point if we will be able to export dried pollack overseas."

With soaring labor costs, the producers of dried pollack in Yongdae-ri are expected to see their profits decrease by more than 10 billion won year-on-year. Korean producers of dried pollack first had to find ways to survive due to the inflow of cheap imported pollack, but now even their existing marketing channels are facing a threat.