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Background to business

The supply of juvenile fish has been restricted with natural fresh-water eels prohibited from being caught
and taken out of the country, according to CITES and LUCN Agreements. Therefore, the ‘necessity for developing artificial seed
technologies of fresh-water eels and their mass production technologies’ is emphasized.

Business Background

Crisis of Extinction of Fresh-Water Eels

· A Lack of Supply of Natural Fresh-Water Eels
· Difficulties in Industrialization due to Unsecured Mass Production Technologies

The Limitation of Domestic Industries

· A fall of Eel Farming Industry Caused by Insufficient Supply of Juvenile Fish
· It is an urgent task to secure the mass production technologies of juvenile fish

Crisis of Extinction of Fresh-Water Eels

· The Limitation of Supply by prohibiting from catching fresh-water eels and
taking them out of the country, due to tighter international regulations such
as CITES Agreements.

First Mover

Securing the Original Technologies of the
Mass Production of Artificial Seeds

· Exporting the Original Technologies of the Mass Production of
Artificial Seeds to the whole world.

Securing Market Dominance and Exclusive Position

· Getting the opportunity to grow as Supply-Centered Seller Market Global Company
Price Leadership Company

Extending based on the Original Technologies of Artificial Seeds

· With the increase of consumption of fresh-water eels caused by the mass production
of fresh-water eels, the processing industries of highly added value are expanded.
Neo-bio business of highly added value could be extended.

※ Establishing the foundation to grow as a global R & D Company and production basis company that supports brisk national
competitiveness edge by securing the original technologies of the mass production of artificial seeds and provides a space
for global-level large complex aquaculture involving the convergence of BT and ICT in order to address a problem with youth
unemployment and by offering the opportunity to create employment.

Status of Development of Each Country

Japan had invested in researching production of artificial seeds of fresh-water eels for some 40 years and since their artificial incubation in 2010, it has succeeded in producing artificial seeds.
However, the country has produced only 100~250 artificial seeds of fresh-water eels annually. Thus from 2012 on, it has been carrying out large research projects in order to secure technologies of the mass production of artificial seeds.
(Planning to produce 10,000 fresh-water eels for the next five years)
China. Taiwan: These two countries have been carrying out a research about the production of artificial seeds of fresh-water eels in the marine laboratory under the wing of the government since the 1970s. Yet, there are neither advanced technological developments nor substantial performance.
EU Countries: The seven EU countries and 15 research institutes made the project known as PRO-EEL in order to augment fresh-water eel resources in Europe and
conducted a study on the production of artificial seeds and breed them for 25 days after incubation.
All the European countries are carrying out a research on the production of each country’s resource seeds and artificial seeds of Anguilla Japonica species of a high preference and economic value.
Korea Ministry of Oceans and Fisheries succeeded in advancing the artificial seeds of grass eels in 2012 after 2008 when the ministry started to carry out a research
on the production of artificial seeds of eels.
Producing some 100,000 artificial eels of the 2nd generation from mother eels was already achieved in May 2016, which has made technologies of eel aquaculture
completely successful.

Policies and Trends of Regulations of Each Country

  • A tighter global regulation on catching eels and taking them out of the country will bring about a gradually rising number of deficits of their supply in the future.

  • The eel producers of the whole world put a restriction on taking eels (especially juvenile fish) out of the country in order to protect each country’s ecological system and manage water resources The things cause a problem with demand and supply of naturally caught juvenile eel fish (grass eels), which makes some of countries carry in the marine products through smuggling.

- Anguilla Japonica from Europe was inscribed into Appendix II in March 2009.
- Since 2013 when the marine products have been specified as embargo items prohibited from being caught, strict regulations on them have been applied in
international trade.
- Anguilla Japonica from Europe was added into IUCN Red List in 2010 (The registration grade was classified as critically endangered (CR)
- In 2014, Anguilla Japonica from Far East regions and Anguilla Japonica Rostrata from North America were added as endangered species (EN) into IUCN Red List
- In addition, 10 species were inscribed into the red list. Currently, a total of 13 species of Anguilla have been registered.
- Some marine product producing advanced countries including Japan perceive the production of artificial seeds of eels as highly added value industry so as to put
it as an object of top security.
- The production of artificial seeds adopted as a national development policy task is now being invested and researched, achieving successfully artificial ovulation,
spawning, incubation and small amounts of production.
- However, industrialization regarding it is hardly achieved at the current stage.
- The U.S Judicial authorities make tight crackdowns on illegally catching and selling eels, for ‘Broken Glass’ that eradicates catching unlicensed eels and illegally
selling them at the East Coast of the US.
- Only some 400 fishers obtain the license to catch eels at the main states of the US
-The U. S Judicial authorities have imposed imprisonment of five years at maximum and fines of 250,000 dollars on those who were arrested for illegally catching
eels, since 2011 when the authorities started to make crackdowns on illegal catching

CITES( Convention on International Trade in Endangered Species of Wild Fauna and Flora)
IUCN(International Union for Conservation of Nature and Natural Resources)

Domestic Policy Trends

Polices of Fostering the Domestic Marine Seed Industry

  • Becoming a key factor of the farming industry, the marine seed industry of promise that requires BT (Biotechnology) has provided insufficient legal grounds although a
    systemic support for it is demanded. With the enforcement of 「Act of Fostering the Marine Seed Industry」 in this time, the ground for systemically managing marine seeds
    R & D, production and distribution has been provided.

  • An improvement goal was set and notified in order to produce high-quality marine seeds. The management of organizations in charge of general affairs of improvement was administered. Broodstork management systems were established in order to effectively manage and foster broodstorks essential for producing high-quality seeds,
    at a joint committee.

Market Trends

  • Cultivation (farming) of fresh-water eels has absolutely been depended on natural resources in the form of catching and fostering grass eels in natural environments.

  • With recently over catching and changes of marine ecological environments, the amounts of catching grass eels have been declining. A sharp change of amounts of catch brings about unstable supply amounts and prices. Juvenile green eel fish from Far East regions costs 7,000 won per a juvenile eel, and 35 million won for 1 kg (5000 eels)

  • ANGUILLA JAPONICA from Far East regions that are mainly consumed in the nation are under CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora ANGUILLA JAPONICA from Far East regions was designated as critically endangered (CR) by IUCN (International Union for Conversation of Nature and Nature Resources), international natural ecology protection body, and inscribed as the limited item of international trade, in other words, as the embargo item prohibited from being caught and taken out of the country, which results in impossible distribution.

  • Due to such a situation, the importance of artificial production of juvenile grass eel fish, the breed of ANGUILLA JAPONICA assumes a very great ratio. Each country is at war for artificial seed, on an international level.

  • The market volume of juvenile grass eel fish from Fast East Asia is estimated at trillions won, and the market volume of grass eels in the whole world, while the market volume of grass eels is estimated at tens of trillions.

Status of Fresh-Water Eel Farming and Price Trends

  • Juvenile green eel fish from Far East regions (ANGUILLA JAPONICA) costs 7,000 won per a juvenile eel, and 35 million won for 1 kg (5000 eels)
    The price of 43 million won for 1kg gold means the price for 1.23 kg juvenile grass eel fish.

  • Some 500 fresh-water eel farms exist in the nation and are concentrated mainly in Jeolanamdo and Jeolabukdo provinces Grass eel farms run to catch grass eels dependent
    on nature have suffered financial hardships due to a decline of amounts of grass eels caught and a rise of their price annually.

  • In order to solve a lack of supply of grass eels and difficulties in managing grass eels farms, it is necessary to produce and supply artificial seeds of grass eels. Each country is
    competing for developing artificial seeds, under the awareness of importance and necessity for it.

  • JJ& GOOGAL HOLDINGS is only a non-governmental enterprise which has industrial technologies of artificial seeds.