Soaring Fuel Prices Squeeze Korean Farmers and Fishermen

"Fuel prices keep rising day after day, but customers have stopped coming to buy strawberries. Farms like ours can barely survive anymore."

On the morning of March 9, inside a vinyl greenhouse in Joan-myeon, Namyangju, Gyeonggi Province, a drum-shaped hot air blower ran continuously to heat the space. Kim Hyo-jun, 58, who operates a 500-pyeong (approximately 1,650 square meters) strawberry experience farm, said his monthly heating costs have surged from 1 million won to 1.5 million won. "Strawberries lose their commercial value with even slight temperature drops, so this is extremely difficult," he said. Unripe green strawberries hung throughout the farm due to slow growth.

As tensions between the United States and Iran show signs of prolonged conflict, domestic fuel prices continue to climb. Indoor kerosene used for greenhouse farming and floriculture has also spiked, directly impacting agricultural and fishing workers.

According to Korea National Oil Corporation's price information system Opinet, the average retail price for indoor kerosene reached 1,534.25 won per liter as of March 8. This marks an increase of 220.37 won from 1,313.88 won on February 28, when the U.S. and Israel attacked Iran. Regular gasoline and diesel rose 202.43 won and 319.87 won respectively during the same period.

The greenhouse thermometer showed 21 degrees Celsius thanks to the kerosene boiler. Strawberries require daytime temperatures of 20 degrees and nighttime temperatures of 8-10 degrees for proper pollination. Kim pointed to bumblebees moving between strawberry flowers. "I borrowed bumblebees needed for pollination," he said. "Their activity drops 50% in low temperatures, so I have no choice but to run the heater all night despite expensive kerosene."

Insulating curtains or water screen facilities could reduce heating costs, but remain out of reach for long-time farmers. "Young people starting smart farms receive government support relatively easily," Kim said. "Those of us who have been farming in vinyl greenhouses for years struggle to get support and cannot dream of reinvesting in equipment."

The floriculture industry, which also requires stable indoor temperatures, has not escaped the Middle East-driven fuel price surge. At a flower center in Namsa-eup, Cheoin-gu, Yongin, Gyeonggi Province, a vendor surnamed Ahn told Seoul Economic Daily: "Fuel prices feel at least 20-30% higher than last year. We heat from 3 p.m. until sunrise daily, and all day on cold days like today. Honestly, it feels hopeless."

Morning temperatures dropped to minus 1 degree Celsius due to a late cold snap, but the flower center maintained 18-19 degrees to prevent wilting. Customers who arrived in heavy coats soon placed them in shopping carts and browsed flowers in light clothing.

According to Ahn, monthly heating costs that stayed at 7-8 million won until last year have recently climbed to 10 million won.

The real problem is stagflation caused by rising fuel prices, Ahn explained. "Business has been slow due to the recession. Flower prices have dropped, not risen," he said. "The issue is that fixed costs including heating, transportation to bring flowers here, and labor are all rising, exceeding our profits."

Other flower centers face similar struggles. A vendor surnamed Lee, who has operated a flower center in Namsa-eup for over 10 years, said: "Everyone's in chaos over fuel prices. Five million won of fuel used to last a month, but recently I had to refuel before the month ended." He added: "Most flower centers are in vinyl greenhouses, so they get cold without heating. We cannot raise flower prices, and flowers wilt without heating, but fuel keeps rising. We are stuck."

A vendor in her 60s surnamed Lee, who has sold foliage plants and fresh flowers for 30 years in Sano-dong, Guri, Gyeonggi Province, said: "Tree prices from wholesalers have risen because kerosene prices went up. With the tough economy reducing flower consumption, raising retail prices is not easy either." She added: "Sales have dropped 50% compared to two years ago. The tax office even called because they found the sharp revenue decline suspicious."

Fishermen's concerns are also deepening. At Sorae Port in Namdong-gu, Incheon, merchants were seen declining customers' requests for free extras, saying: "We have nothing left to give with rising fuel costs."

A 62-year-old fisherman surnamed Lee at Sorae Port fish market expressed anxiety about soaring fuel prices. He worries that raising product prices could drive away remaining customers. "Business is already difficult because product quality and quantity are poor," he sighed.

Tax-exempt fuel prices for fishermen have already started climbing. Ha, a fisherman from Yeongdeok, North Gyeongsang Province, said: "I received a text that the tax-exempt diesel price at the fisheries cooperative rose from 167,000 won per drum (200 liters) last month to 180,000 won in March—an increase of 13,000 won. Large boats that use a lot of fuel are very sensitive to this increase."

Industry observers warn that steeper price increases could halt operations, particularly for large vessels. Unlike small fishing boats with short operation times, large vessels consume thousands of liters of diesel weekly.

If operations stop, both vessel owners and fishing workers would suffer income losses. "When fuel prices rise significantly above a certain level, large squid jigging boats simply stop operating," Ha explained. "When the economics do not work and owners lose money, crew members have no choice but to dock and rest."

Concerns about business difficulties extend to seafood distribution. Companies with long-term supply contracts with large buyers face direct profit losses from sudden fuel cost increases. A seafood distributor said: "When fuel prices rise, fishing equipment prices including nets also increase, inevitably pushing up overall seafood prices."