2

1. Value of the Oceans

2. Importance of the fishing industry

3. Seafood is Not Just a Side Dish

4. The Need for a fishing industry

Ⅰ. The Oceans and the Fishing Industry

1 Origin of Life

– The oceans cover 71% of the earth surface

– More than 300, 000 species of marine life, which is over 7 times higher than the number of terrestrial species

4

Prevention of climate change and global warming, the Oceans;

– Prevent drastic temperature changes by absorbing 80% of solar energy

– Maintain oxygen concentrations at a stable levels by absorbing vast quantities

of CO2(The oceans hold 60 times more CO2 than the atmosphere)

The brain evolved in the sea 500 million year ago and is still dependent on the Marine food web.

- Michael A. Crawford (Imperial College London) ▲ Professor Michael A. Crawford gives the keynote speech at Yeosu Expo Symposium (photo: Newsis)

1

2.7 billion people, about half of the global population, live along coastlines

– Two-thirds of the 50 largest cities in the world are located near the seas.

(Four ancient civilizations originated near rivers / Later they led maritime civilizations)

Opportunity for Human

Development

“The oceans are vast accessible fields for man’ Enterprise, and sure guarantee of our race's survival even if our descendants are going to be ten times as numerous as we are today.

- Arnold Toynbee

5

2

6

Industrial Value

“The history of the West would have been different

without fish.”

– The Netherlands and Portugal laid their economic

foundations by producing herring and cod respectively.

– Brian Fegan (Professor of Anthropology, Univ. of California)

▲ Professor Brian Fegan explaining the importance of marine life and the fishing industry for the economic development of the West.

(Photo : KBS ‘Super Fish’)

▲Herring patterns are easily found on old buildings in the Netherlands, indicating the importance of herring.

(Photo : KBS ‘Super Fish’)

3

7

Provides DHA essential for the evolution of

the human brain and trace elements

essential for life

▲Influenced by religion, people ate fish as a main dish rather than meat on special holidays in the West. It is reported that the main dish in “ The Last Supper” by Leonardo da Vinci is fish. (Reference: KBS ‘Super Fish’)

Maintain and Preserve Civilization

• Heart disease, perinatal disease, mental disease

The greater the fish consumption, the lower the incidence rate of major depression The greater the omega-3 intake during pregnancy, the greater the mental ability of children.

Relationship between Fish Consumption

and the Incidence of Depression

Relationship between the Mental Ability of Children under 8 and the Intake of

Omega-3 during Pregnancy

Source : Hibbeln J., "Fish consumption and major depression", The Lancet, 1998. 8

3

3

9

Omega-3 extracted from fishery products contributes to

reducing infections, improving the quality of life, extending

life expectancy and decreasing the mortality rate.

- Philip Calder, University of Southampton, UK

The food you eat becomes your brain. If you want your

children’s brain to be composed of pure and healthy natural oils,

eat fishery products!

-Joseph R. Hibbeln, Director of National Institutes of Health

U.S. department of health and human services

Medical Importance

Fishery products provide minerals, including iodine, selenium,

iron, copper, zinc, etc.

⇒ Important for mental development, eyesight protection and

brain activity

10

Original Function

Fishing Industry

Fishing Villages

Stable production of

fishery products

Provide the basis for living and employment

opportunity to fishers

Multi Functions

Sustainable management of fishery resources

Provision of safe fishery products

Maintain traditional culture and identify underwater cultural

heritage

Defend ocean territories

Preserve nature and manage waters near

the coast

Use national land in a balanced manner

Promote tourism to fishing villages

4 Functions of the Fishing

Industry

4 Crisis of Fishery

Products Supply in

the World

11

123

0

20

40

60

80

100

120

140

1961 1970 1980 1990 2000 2009

World Fish Consumption

Source : Food and Agriculture Organization of the United Nations, 2012

– Production : 156 million tons(2011) → 181 million tons(2022)

– Consumption per Capita

19kg(average from 2010 to 2012) → 20.6kg (2022)

→ 8 billion (2022)

Source : FAO FISHSTAT Plus statistic database, 2012

84 96

180

-

50

100

150

200

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Aquaculture

Capture

Total

World Aquaculture & Capture Production

Mil

lio

n M

/T

Mil

lio

n t

on

s

> Supply 152 million tons

2.1%/year(’99-’09) 2.8%/year(’99-’09)

Ⅱ. Growth of Fishing Industry and the Role of Fisheries Cooperatives in Korea

1. Growth of Fisheries in Korea

2. About Fisheries Cooperatives in Korea

3. Role of the Korea National Federation

of Fisheries Cooperatives

4. Current Status of Fisheries in Korea

ODA was the only source for national reconstruction after the Koran War

• ODA was the only source of capital in 1950s.

< ODA from OECD countries > (Unit : Million USD)

• Korea became the first and only donor country in 2009 among the ODA recipient countries.

1 A Driving

Force Behind

the Korean

Economy

13

1956 1957 1958 1959 1960

ODA 327 383 321 222 249

Basis of Korea’s industrialization from the 1950s to the 1970s.

• In the 1950s when Korea had no industrial infrastructure, fisheries

were the major industry. The export of fishery products was the single source of obtaining foreign currency.

• Fishery products accounted for 46% and 93.3% of total export

volume in 1946 and 1949 respectively. At that time the fishing industry was the backbone of the country.

Fishery Products Export Amount

4.25 10

90

1,910

2,362 (Unit: 1 million

dollars)

1958 1962 1970 1988 2012

Share of fishing industry in Total Export Volume

25.8 22%

9%

3.1% 0.4%

(Unit : %)

1962 1958 1970 1988 2012

Electronic products accounted for 28.5% in total export volume in 2012

1 A Driving

Force Behind

the Korean

Economy

14

Putting top priority on fisheries in the government policies

• January 18, 1952 ‘Presidential declaration on Korea’s sovereign rights to nearby seas’ to establish marine boundaries

• President Rhee started the overseas fisheries

• President Park Chung-hee reinvigorated fisheries

• President Park supported a building overseas fisheries training ship at Pukyong National University and naming of the ship.

Future industrialization of fisheries

• Current president Ms. Park Geun-hye added fisheries to Major Government Projects.

1

15

▲ President Park Chung-hee observing tuna caught by a Korean fishing vessel

The need for developing fishery experts increased with an increase in the sardine catch

– 66,356 tons in 1911 1.039470 million tons in 1931 2.115785 tons in 1937 (Number 2 in the world)

Pukyung National University, dedicated to fishery education was established.

– The University shares knowledge and experiences with international students from the world.

1 Establishment of an educational institute dedicated to fisheries

16

Ⅰ

2

Brief History

Role and Mission of Fisheries

Cooperatives

Structure of Fisheries Cooperatives

Business Activities of Fisheries

Cooperatives

2

18

1908. 7.10

1962. 4. 1

1988.12.31

The first fisheries cooperative “Geoje Hansan fisheries cooperative” founded

2009. 9. 10

2012. 4. 1

Korea National Federation of Fisheries Cooperatives established according to the Fisheries Cooperative Act

The direct election system of president of fisheries cooperatives introduced

Fishermen Education Welfare Culture Foundation founded

The 50th anniversary of its establishment

2002. 2. 1 Noryangjin Fish Market acquired

2

19

Raising Socioeconomic, Cultural Status of Fishers

Banking

Providing fisheries funds

Deposit, loan, trust,

foreign exchange, credit

card

Mutual credit

Insurance

Seafood price stabilization

Building seafood

distribution infrastructure

Finding new markets

Seafood processing &

manufacturing

Supply fishing equipment

& tax free oil

Marketing Extension

Fishery production

support

Education for fisher

Safe fishing operation

Support & fisheries

wireless communication

Research & study

International cooperation

2 92 Member Fisheries Cooperatives,

158,000 Member Fishers

Member Fishers (154,000)

Member Fishers (4,000)

Member Fishers (200)

Fisher’s Societies

(1,993)

Local Fisheries Coops (70)

Fishing Type Fisheries Coops

(20)

Processing Fisheries Coops

(2)

Korea National Federation of Fisheries Cooperatives

Staff - KNFC : 3,823 persons(Inculding affiliated companies) - Member fisheries Cooperatives : 6,795 persons

Structure

2

21

(Unit : Million USD)

2000 2005 2011 2012

Total 7,189 11,861 21,008 22,840

Extension 245 158 154 181

Mutual Credit 1,242 2,642 3,832 4,442

Insurance 404 235 857 1,178

Marketing & Supply 973 1,099 1,435 1,476

Banking 4,325 7,727 14,731 15,564

2002 (A)

2012 (B)

(B-A)

Business Scale 7,968 17,449 9,480

Net Profits △1.9 53.8 55.7

1. Business Scale of KNFC

(Unit : Million USD)

2. Business Scale of Member Fisheries Cooperatives

22

Consignment and Joint Sales

Financial Support for

Tax-free Fuel for Fishing

Support for Safe Fishing

Military Supply

Mutual Finance

Insurance for Fishing Ship and Crew

Fishery Broadcasting

Policy Support

Foundation for Education, Culture and

Welfare of Fishermen

3 Comprehensive Support for

the fishing industry

Eliminated the need for commission

agents, who lived off the fishing

industry, by strengthening consignment

sales of cooperatives

Member fisheries Cooperatives

strengthened consignment sales by

receiving financial support from the

Korea National Federation of Fisheries

Cooperatives

▲ Start of Consignment Sales by the Korea

National Federation of Fisheries Cooperatives in

1962 at the Incheon Consignment Sales Store, 50

years ago

3 Consignment Sales of

Fishery Products

23

3 Consignment Sales of

Fishery Products

Classification Consignment Sales Joint Sales

No. of Markets 6 (1962) → 203 (2012) 9

Operated by 77 member cooperatives Central (7) Member (2)

Applicable Law Fisheries Act Act on Agricultural Wholesale

Market

Business Scale 3,156 million dollars 271 million dollars

< Current State of Consignment and Joint Sales Stores >

< Consignment Sales Record (2011) >

Classification Transaction Volume

(1,000 tons) Transaction Amount (100 million dollars)

Fisheries Cooperatives 988 4 (1962) → 3,457 (2011)

Cooperative Fish Market

222 472

24

Supported destitute fishermen by supplying the necessary

expenses for fishing at low interest rates.

Financial Support

- Started in 1963

- Interest Rate and Period: annual rate of 3%, 1 year

• Reimbursed interest difference: The government

reimbursed the difference between the commercial

rate and the rate provided to destitute fishermen

25

Total Support Support for Costal

Fisheries Support for

Overseas Fisheries

1,905 1,785 120

- Financial Support to Destitute Fishermen in 2011

(Unit: Million USD)

3

Financial

Support

for

Destitute

Fishermen

26

3

Tax-free

Fuel for

Fishing

Fuel can be purchased at lower prices and provided to coastal

fishing ships and remote fishing villages in a timely and stable

manner.

Supplying tax-free fuel was possible by proposing the idea to the

government for 3 years (1962 to 1964)

– Provide fuel at a price 15% lower than commercial prices at 22

refueling stations in 22 major ports nationwide

Amount Supplied (1,000 D/M)

Provided Value to Fishermen(B) (Million USD)

486 890

Current State of the Fuel Supply (2011)

– Type of Fuel Supplied : Diesel, B-A, B-B, B-C, MF30, kerosene,

LPG, petrol

27

3 Support for Safe Fishing

Protect the life and property of fishermen and guarantee safe

fishing activities regarding international maritime disputes,

reductions in fishery stocks, accidents at sea and marine

meteorology

Projects and Outcomes

- Started the safe fishing support project in 1965 with the

fishery communication station

- Provided training to fishermen on safe fishing guidance

- Provided training for ship safety inspectors

- Operated the Fishery Information and Communication

Station

- Install fishing vessel location transmitting devices

3 Fisheries Wireless Communication System

Fishermen were not appropriately rewarded for selling their fishery products. KNFC persuaded the military to make fishery products produced by fishermen available at appropriate prices to provide soldiers with quality meals.

Signed the Military Supply of Fishery Products Agreement in January 8, 1969 Traditional practices of military supply

was brought up to date and valuable and fresh fishery products were provided, cutting out middle men, commission agents and private military supply firms.

⇒ Positive response from soldiers ⇒ Contributed significantly to higher income for fishermen

▲ Signing of the Military Supply of Fishery Products Agreement (January 8, 1969)

3 Military Supply

29

Economically vulnerable fishermen organized a cooperative bank to deposit excess cash and obtain loans as needed. It provided a foundation for stable fishery activities by assisting fishermen who formerly had to depend on high-interest private loans.

The path to self-reliance went through a 10 million dollar fund raising campaign in the late 1960s.

• Before the 1970s: most fishermen were destitute and had to depend on high-interest private loans.

• Spread the need for credit associations and internal funds • Held a fishermen rally to raise a 10 million dollar internal fund to

establish a fishing village credit association • Achieved 10 million dollars in 1972, a year ahead of the 1973 target

3 Mutual Finance

⇒ The fund helped fishermen escape chronic debt and lowered dependency

on external financing and expanded financial support for fishermen.

30

Policy Insurance Project: Disaster Insurance for Ships and Crew, Disaster Insurance for Farmed Fishery Products • Protects crew and contributes to the stability of fishery

management by compensating for disasters • Stabilizes the management of fishery farming and

support the speedy resumption of fishing activities after disasters

Insurance: life, injury and damage, fire insurance

3 Insurance

31

Free regular ship inspections to prevent accidents

• 1,744 ships in 2011 → 1,939 ships in 2012

Expands the number of species of marine products

covered by disaster insurance for farmed fishery

products

• 11 species in 2012→ 15 species in 2013

Produces informative fisheries videos, including information on fishing grounds, weather, prices and fishery policies for fishermen Installs large-scale 50-inch monitors and receiver devices at 40 major consignment sales stores Post regular information on the state of fisheries on the homepage of the KNFC Broadcasting.

3 Broadcasting the State of the Fisheries

32

Research Institute

Government

KNFC

Fisheries Policy Workshop

• Hold workshops where government officials discuss

fisheries policies with leaders of cooperatives and

representatives of fishermen.

3 Policy

Support

33

Fisheries Research

• Conduct research policy and provide suggestions on

fisheries policies, economy, management and

finance.

Activities to Respond to FTA

• With respect to FTA discussions with other countries,

including China, KNFC gathers various opinions from

fishermen and makes proposals to the government and

the National Assembly to minimize the damage.

34

Purposes : To implement projects to protect fishermen‘s rights and interest and improve welfare plans for them

Date of Establishment : 9. 10, 2009 Major Projects

- Training program for leaders from fisheries - Medical care for fishermen - Dormitory for the children of fishermen - Welfare for foreign crew - Donating IT equipment in fishing villages

3

1. Educated Fishermen

2. Sound Fishing Community

3. Stable Fish Production

4. Safe Fish Products

5. Globalization of Fisheries

Ⅲ. Sustainable Fisheries

4

– Production, distribution, processing, dining, etc.

World-class production and export of fisheries products

– Advanced marine nation using national waters, which are 4.4 times larger than the national land territory, the five oceans.

– 13th in terms of production, 8th in terns of farming and 3rd in terms of deep sea fishing.

36

Industrial Value

C

Sustainable Fisheries

37

1

of the fisherman population and lack of new fishermen.

– 20.2% of fishermen in Korean is over 70 and the average age is 60.4.

Ways of attracting new crewmen

– Support the income of fishing crews and modernize fishing vessels.

Establishing an advanced training institute for fisheries.

Elevating the status of fishing villages and fishermen by nurturing talented

people in fishing village

38

2

– Fishermen live in near coasts or on islands

Revitalizing fishing communities

– Cooperatives, voluntary democratic organization, can provide the most

suitable welfare to fishermen.

39

3

– Continuous decrease in production due to pollution and over

exploitation of resources

– Regulation of fishing efforts, restructuring and decreasing number

of fishing vessels

– Laying the foundations for fishery resources by establishing sea

farms, releasing juvenile fish, improving habitats, and purifying

fishing grounds

40

3

41

Type

Quantity Control Quality Control

Tools to manage

catch amount

Tools to manage

fishing effort

Technical

management tools

Tools

• Total Allowable Catch

(TAC)

• Individual Quotas (IQ)

• Individual Transferrable

Quotas (ITQ)

• Licenses

• Individual fishing effort

quotas

• Limiting fishing

equipment and fishing

vessels

• Total Allowable Effort

(TAE)

• Limiting size and

gender

• Limiting fishing periods

(ban on fishing during

certain periods)

• Limiting fishing areas

(ban on fishing in

certain areas)

Tools to manage fisheries

4 Modern Demands for Safety

42

With the spread of FTAs, the international safety standards for fishery products are strengthened.

– Quality control is required to improve the competitiveness of

fishery exports.

France Label Rouge

– The top food certification recognized by the French Ministry of Agriculture and Fisheries

Britain’s Marine Stewardship Council (MSC)

– A sustainable fishery certification program adopted to solve the problem of declining global fish stocks from excessive catches and illegal fishing.

Quality Certification for Fishery Products

Korea’s Eco Seafood

– A certification that marine products do not contain harmful chemicals and antibiotics to preserve the environment.

5

43

Fisheries ODA

Improve Efficiency

Win-win strategy between

developing and developed

nations

The role of developing countries increases in the international fisheries trade

• More than half of the international trade in fisheries comes from developing nations

• 77% of fishery products produced by developing countries are consumed in advanced countries (FAO, 2010)

Effect of earning foreign currency and creating jobs through the export of fisheries products in developing countries

• The fisheries industry in developing countries is a comparatively advantageous

than other industries. 43

Ⅳ. Knowledge Sharing and Cooperation Among Fisheries Cooperatives in the world

1. KSP (Knowledge Sharing Program)

2. World Fisheries Cooperative Day

3. ICA Fisheries Committee and the Future of

Fisheries

1

45

Sharing the experience and knowledge of a

successful Fisheries Cooperatives in Korea

Maintaining a sustainable fishing industry by

educating the fishermen of the world

Education for

Workers in the fishing industry

1

46

Contributing to the development of the Federation of

Fisheries Cooperatives and fishing industry by providing

IT equipment and fisheries equipment to overseas

cooperatives

Strengthening the networks among ICA Fisheries

Committee members by sharing information

Equipment Support

2

47

World Fisheries Cooperatives Day (observed annually, on June 16) Protecting the rights and increasing the incomes of fishermen throughout the world by revitalizing Fisheries Cooperatives.

– Focus international attention on the role and contributions of the fishing industry and cooperatives.

– Protect the rights and increase the incomes of fishermen throughout the world by revitalizing the activities of fisheries cooperatives.

Bringing fishermen together from around the world on World Fisheries Cooperative Day.

2

48

3

• “THE FUTURE OF HUMANITY DEPENDS ON THE SUSTAINABILITY OF MARINE FOODS”

- Michael A. Crawford

Nations that secure fishery products will be the strong nations of

the future.

– Fishermen around the world are at the forefront of resolving food

shortage issues.

– Fishermen should be proud and confident that they are part of the

most important industry for the future of humanity.

49

Need to cooperate continuously for a

sustainable fishing industry by sharing

information and experience among the

members of the ICA Fisheries Committee.

50

THANK YOU VERY MUCH

iktus@korea.com