BOATS HALT OPERATION OVER FUEL PRICES

[Anchor Lead]

Prices of diesel for ships have soared following the war in Ukraine, prompting many fishing boats to return empty-handed. At the Busan Cooperative Fish Market alone, nearly 30 percent of fishing boats have halted their operations.

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An array of fishing boats are docked in the sea off the Busan Cooperative Fish Market. They are supposed to be catching mackerel and pollack off Jejudo Island, but the fishermen decided to halt their operations and return empty-handed. That's because the longer they fish, the more losses they sustain. The reason being -- soaring prices of diesel for ships. They have recorded the highest level in 15 years because of the Russian invasion of Ukraine.

[Soundbite] Sung Hee-kyung(Fishing firm) : “We need at least KRW 1 bn to maintain operations for one month. This month, our average fisheries price is probably less than KRW 500 mn.”

This month, prices of diesel for ships recorded 229,000 won per 200 liters, double the price recorded last April. As a result, 30 percent, or 30 ships, of the 18 fleets belonging to the Fishing Vessel Association stopped their operations even before the fishing season ended. If oil prices remain high when the fishing season resumes, small fishing firms will inevitably suffer a blow due to the deteriorating earnings.

[Soundbite] Kim Wang-young(Fishing Vessel Association) : “If oil prices continue to soar when the fishing season resumes, our operations will be affected seriously. Small firms will have to close their business.”

Skyrocketing energy prices stemming from international tensions and conflicts are taking a toll on Korea's fisheries sector.