South Korea is becoming a significant user of wood and recent changes in government economic development plans indicate that the country could see significant growth in the construction of wood-frame single- and multi-family houses over the next 15 years. In contrast to Japan (a country with a long tradition of building wooden homes) and China, Korea is a relatively small wood products market (Japan’s population is more than twice Korea’s, and China has a huge wood market and a population 27 times larger than that of Korea). However, Korea remains an important wood market, importing some 85%-90% of the wood it consumes. This keeps the country highly dependent on offshore suppliers.

The total volume of softwood log imports peaked in 2002 at over 7 million m3, and has declined in the last five years to about 6 million m3 per year. New Zealand, Russia and Australia have grown their market share of softwood log imports at the expense of Chile and the US. Log imports are expected to stay relatively steady and then begin to decline (as in Japan), as the domestic sawmill industry shrinks and higher demand for sawn lumber is supplied by imports. Korea’s annual lumber imports have been relatively stable since 1999 at ~775,000 m3 (330 million bf), and softwood lumber has gained market share over hardwood lumber. Yearly domestic lumber output has averaged about three million m3 (1.3 billion bf) since 1999, with imported logs the main raw material. The last three years have seen an increase in lumber imports from 656,000 m3 (280 million bf) to 887,000 m3 (375 million bf), with all of the 35% increase coming in the form of softwood lumber. Lumber imports have gone up as log imports have declined from the 2002 peak. Canada has strongly expanded its market share at the expense of hardwood lumber suppliers (Malaysia and Indonesia). Korea’s economy appears to be following the post-war Japanese economic model. To move economic development more quickly to a higher level and improve housing and living conditions, the government has adopted a very aggressive economic makeover plan (4CNTP). This comprehensive plan includes major provisions expected to positively impact housing construction and social development in the next 15 years. Although, out of necessity, Korea has used mainly concrete building methods in the past, now growing disposable income and a desire by the government to move people out of Seoul and into new clusters of cities and towns in outlying regions will allow for more and larger single-family houses. Both of these trends are viewed as important factors in supporting greater consumption of wood in the construction and renovation of Korean homes. Source: WOOD Markets Monthly International Report, www.woodmarkets.com