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Soaring fuel costs yield bitter harvest as farmers, fishers see diminishing returns

Published: 20 Mar. 2026, 07:00

A worker at a citrus farm in Andeok-myeon, Seogwipo, Jeju Island, on the morning of March 17 [CHOI CHOONG-IL]

At a greenhouse in Seogwipo, Jeju Island, ripe citrus fruits hang heavy on the trees — but soaring fuel costs are casting a shadow over this year’s harvest.

“I'm not sure if I can keep farming,” said Kim Yeong-hwan. Pointing to a kerosene tank, he let out a deep sigh.

“With duty-free mandarin imports and rising fuel prices since the Middle East conflict, it’s a double blow,” he said. “A 2,000-liter [528-gallon] tank runs dry in about 20 to 30 days, and fuel costs will likely double this year.”

As the Iran war drags on and continues to push up oil prices, those in agriculture and fisheries are feeling the effects. According to the Korea National Oil Corporation on Thursday, the average retail price of heating kerosene at gas stations stood at 1,574.82 won per liter ($3.97 per gallon) in the second week of this month. The price has gone up 19.9 percent, or 260.94 won, from 1,313.88 won on Feb. 28, the same day the United States and Israel launched strikes on Iran.

Over the same period, gasoline prices rose from 1,627.71 won to 1,901.6 won per liter, while diesel increased from 1,490.7 won to 1,924.45 won.

Tangerines hang from a tree at a citrus farm in Andeok-myeon, Seogwipo, Jeju Island, on the morning of March 17. [CHOI CHOONG-IL]

A worker at a citrus farm in Andeok-myeon, Seogwipo, Jeju Island, on the morning of March 17 [CHOI CHOONG-IL]

Greenhouse citrus farmers in Jeju are particularly on edge, as boilers must run overnight when spring temperatures drop. The fruit requires internal temperatures to be maintained at around 24 degrees Celsius (75 degrees Fahrenheit) during growth.

Electric heating systems, an alternative to kerosene boilers, also come with heavy costs. Installing high-voltage electrical facilities for a 3,300-square-meter (35,500-square-foot) greenhouse costs about 100 million won.

Kim Chan-jo, a famer who also grows greenhouse citrus, said his electricity bill has already exceeded 50 million won this year, up from 40 million won last year.

“Harvest is in May, but I’m worried there will be little left in profit,” he said.

Representatives from the Daejeo Tomato Festival organizing committee and the Daejeo Agricultural Cooperative promote the upcoming 23rd Daejeo Tomato Festival at Gangseo Sports Park in Gangseo District, Busan, on March 18. [YONHAP]

Tomato farmers in Busan are also struggling ahead of the Daejeo Tomato Festival set to open on Saturday. While kerosene prices have nearly doubled, tomato prices have fallen.

The price of a 2.5-kilogram (5.5-pound) box of Busan-grown Daejeo tomatoes dropped to 11,300 won this year from 15,000 won last year, a 24.7 percent decline.

“We used to earn about 70 million won a year, but this year it may be difficult to even make 40 million won,” Ryu Tae-won, head of the Daejeo agricultural cooperative, said.

Vegetable farmers in Gangwon are also feeling the pinch. Shin Yong-cheol, a farmer who cultivates bok choy, young napa cabbage and carrots on a 2,970-square-meter farm in Chuncheon, Gangwon, said he will need another 3,000 liters of kerosene through late April to continue heating.

“Support has decreased while fuel prices have risen, making things very difficult,” he said.

Rising oil prices are also affecting the use of farming equipment. Chae Jong-cheol, who grows perilla leaves in Geumsan County, South Chungcheong, said he now hesitates to use machinery such as tractors due to higher fuel costs.

Large purse seine fishing vessels depart from the Busan Cooperative Fish Market in Seo District, Busan, to head out to sea on the morning of Feb. 23. [YONHAP]

Fishermen, too, are struggling to stay afloat. Ahn Sang-seop, a fisherman in Yeongdo District, Busan, has reduced the number of times he goes out to sea.

“Fuel costs per trip have risen from 120,000 won to 180,000 won,” he said. “In my 40 years in fishing, I’ve never had such a hard time. Even if I catch 300,000 won worth of fish, I’m left with less than 100,000 won after fuel costs, so I often give up on going out.”

As the situation worsens, the government, local authorities and the National Agricultural Cooperative Federation, also known as NongHyup, are moving to respond. NongHyup has launched an emergency support package worth 30 billion won to ease the burden of fuel costs on farmers, including 25 billion won in tax-free fuel discounts and 5 billion won in discounts at NongHyup gas stations.

Minister of Trade, Industry and Resources Kim Jung-kwan, center, inspects how consumer fuel prices are being reflected at a gas station in Cheongju, North Chungcheong, on the morning of March 16, four days after the implementation of the price cap. [MINISTRY OF TRADE, INDUSTRY AND RESOURCES]

South Gyeongsang will provide a cash relief payment to all residents — about 3.3 million people — starting May 1. South Jeolla is preparing financial support worth 600 billion won to help small- and medium-sized enterprises and small business owners.

North Gyeongsang plans to expand its emergency management stabilization fund, previously limited to firms affected by U.S. tariffs, to include those impacted by the Iran war.

The government plans to submit a supplementary budget bill to the National Assembly later this month, including measures to address rising oil prices linked to the Middle East, with approval expected next month.

An official from the Ministry of Agriculture, Food and Rural Affairs said the government is preparing additional support measures, including temporary fuel-linked subsidies for farmers and fertilizer subsidies, and will actively reflect industry feedback before finalizing the plan.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY SPECIAL REPORTING TEAM [[email protected]]