Mr Kwang-bum Park, Secretary-General, ICFO, at the International Co-operative Alliance Global Conference in Cape Town, November 2013.

2. 2

3. Ⅰ. The Oceans and the
Fishing Industry
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

4. 1
Origin of Life
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)
– 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
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)
4

5. 1
Opportunity
for Human
Development
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)
“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

6. 2
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)
▲Herring patterns are easily found on old
buildings in the Netherlands, indicating the
importance of herring.
(Photo : KBS ‘Super Fish’)
▲ Professor Brian Fegan explaining the importance of marine life and the
fishing industry for the economic development of the West.
(Photo : KBS ‘Super Fish’)
6

7. 3
Maintain and
Preserve Civilization
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’)
7

8. 3
• 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

9. 3
Medical
Importance
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
Fishery products provide minerals, including iodine, selenium,
iron, copper, zinc, etc.
⇒ Important for mental development, eyesight protection and
brain activity
9

10. 4
Multi
Functions
Functions of
the Fishing
Industry
Provide the basis
for living and
employment
opportunity to fishers
Original
Function
Stable
production of
fishery products
Sustainable
management of
fishery resources
Provision of safe
fishery products
Fishing
Industry
Fishing
Villages
Defend ocean
territories
Maintain traditional
culture and identify
underwater cultural
heritage
Preserve nature and
manage waters near
the coast
Use national land in a
balanced manner
Promote tourism to
fishing villages
10

11. 4
Crisis of
Fishery
Products
Supply in
the
World
– Production : 156 million tons(2011) → 181 million tons(2022)
– Consumption per Capita
19kg(average from 2010 to 2012) → 20.6kg (2022)
→ 8 billion (2022)
> Supply 152 million tons
200
2.1%/year(’99-’09)
Aquaculture
Capture
Total
150
180
100
96
84
50
World Fish Consumption
140
Million tons
Million M/T
World Aquaculture & Capture Production
2.8%/year(’99-’09) 123
120
100
80
60
40
20
2010
2005
2000
1995
1990
1985
1980
1975
1970
1965
1960
1955
1950
-
Source : FAO FISHSTAT Plus statistic database, 2012
0
1961
1970
1980
1990
2000
2009
Source : Food and Agriculture Organization of the United
Nations, 2012
11

12. 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

13. 1
A Driving
Force
Behind
the
Korean
Economy
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)
1956
ODA
•
1957
1958
1959
1960
327
383
321
222
249
Korea became the first and only donor country in 2009 among the
ODA recipient countries.
13

14. 1
Basis of Korea’s industrialization from the 1950s to the
1970s.
A Driving
Force
Behind
the
Korean
Economy
•
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.
Share of fishing industry in Total Export Volume
Fishery Products Export Amount
(Unit: 1
million
dollars)
2,362
(Unit : %)
Electronic products
accounted for 28.5% in
total export volume in
2012
25.8
1,910
22%
9%
90
3.1%
10
0.4%
1988
2012
4.25
1958
1962
1970
1988
2012
1958
1962
1970
14

15. 1
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.
President Park Chung-hee observing
tuna caught by a Korean fishing vessel
▲
15

16. 1
Establishment of an educational
institute dedicated to fisheries
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.
16

17. 2
Brief History
Ⅰ
Role and Mission of Fisheries
Cooperatives
Structure of Fisheries Cooperatives
Business Activities of Fisheries
Cooperatives

18. 2
1908. 7.10
1962. 4. 1
1988.12.31
2002. 2. 1
2009. 9. 10
2012. 4. 1
The first fisheries cooperative “Geoje Hansan fisheries
cooperative” founded
Korea National Federation of Fisheries Cooperatives
established according to the Fisheries Cooperative Act
The direct election system of president of fisheries
cooperatives introduced
Noryangjin Fish Market acquired
Fishermen Education Welfare Culture Foundation founded
The 50th anniversary of its establishment
18

19. 2
Raising Socioeconomic, Cultural Status of Fishers
Extension
Marketing
Banking
Fishery production
Seafood price stabilization
Providing fisheries funds
support
Building seafood
Deposit, loan, trust,
Education for fisher
distribution infrastructure
foreign exchange, credit
Safe fishing operation
Finding new markets
card
Support & fisheries
Seafood processing &
Mutual credit
wireless communication
manufacturing
Insurance
Research & study
Supply fishing equipment
International cooperation
& tax free oil
19

20. 2
92 Member Fisheries Cooperatives,
158,000 Member Fishers
Structure
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

21. 2
1. Business Scale of KNFC
(Unit : Million USD)
2000
Total
2005
2011
2012
7,189
11,861
21,008
22,840
245
158
154
181
1,242
2,642
3,832
4,442
Insurance
404
235
857
1,178
Marketing & Supply
973
1,099
1,435
1,476
4,325
7,727
14,731
15,564
Extension
Mutual Credit
Banking
2. Business Scale of Member Fisheries Cooperatives
(Unit : Million USD)
2002
(A)
2012
(B)
(B-A)
Business Scale
7,968
17,449
9,480
Net Profits
△1.9
53.8
55.7
21

22. 3
Comprehensive Support for
the fishing industry
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
22

23. 3
Consignment Sales of
Fishery Products
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
23

24. 3
Consignment Sales of
Fishery Products
< Current State of Consignment and Joint Sales Stores >
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
< 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

25. 3
Supported destitute fishermen by supplying the necessary

expenses for fishing at low interest rates.
Financial
Financial Support

Support
-
Started in 1963
for
-
Interest Rate and Period: annual rate of 3%, 1 year
•
Destitute
Reimbursed interest difference: The government
reimbursed the difference between the commercial
Fishermen
rate and the rate provided to destitute fishermen
-
Financial Support to Destitute Fishermen in 2011
(Unit: Million USD)
Total Support
Support for Costal
Fisheries
Support for
Overseas Fisheries
1,905
1,785
120
25

26. 3
Fuel can be purchased at lower prices and provided to coastal
fishing ships and remote fishing villages in a timely and stable
Tax-free
manner.
Fuel for
Supplying tax-free fuel was possible by proposing the idea to the
Fishing
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
Current State of the Fuel Supply (2011)
–
Type of Fuel Supplied : Diesel, B-A, B-B, B-C, MF30, kerosene,
LPG, petrol
Amount Supplied
(1,000 D/M)
Provided Value to Fishermen(B)
(Million USD)
486
890
26

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
27

28. 3
Fisheries Wireless Communication System

29. 3
Military
Supply
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.
▲ Signing of the Military Supply of Fishery
Products Agreement (January 8, 1969)
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
29

30. 3
Mutual Finance
•
•
•
•
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
⇒ The fund helped fishermen escape chronic debt and lowered dependency
on external financing and expanded financial support for fishermen.
30

31. 3
Insurance
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
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
31

32. 3
Broadcasting
the State of
the Fisheries
Government
KNFC
Research Institute
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.
32

33. 3
Policy
Support
Fisheries Policy Workshop
•
Hold workshops where government officials discuss
fisheries policies with leaders of cooperatives and
representatives of fishermen.
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.
33

34. 3



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
34

35. Ⅲ.
Sustainable Fisheries
1. Educated Fishermen
2. Sound Fishing Community
3. Stable Fish Production
4. Safe Fish Products
5. Globalization of Fisheries

36. 4
Industrial
Value
– 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

37. C
Sustainable Fisheries
37

38. 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

39. 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

40. 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

41. 3
Tools to manage fisheries
Quality Control
Quantity Control
Type
Tools to manage
Tools to manage
Technical
catch amount
fishing effort
management tools
• Total Allowable Catch
(TAC)
• Individual Quotas (IQ)
Tools
• 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)
41

42. 4
Modern
Demands
for Safety
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.
Korea’s Eco Seafood
Quality
Certification
for Fishery
Products
– A certification that marine products do not
contain harmful chemicals and antibiotics to
preserve the environment.
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.
France Label Rouge
– The top food certification recognized by
the French Ministry of Agriculture and
Fisheries
42

43. 5
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

44. 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

45. 1
Education
for
Workers in
the fishing
industry
Sharing the experience and knowledge of a
successful Fisheries Cooperatives in Korea
Maintaining a sustainable fishing industry by
educating the fishermen of the world
45

46. 1
Equipment
Support
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
46

47. 2
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.
47

48. 2
48

49. 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.
Need to cooperate continuously for a
sustainable fishing industry by sharing
information and experience among the
members of the ICA Fisheries Committee.
49

50. THANK YOU VERY MUCH
iktus@korea.com
50