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Current Korean economic conditions

  • Size : 98,000km2 (1% of US)

  • Population(¡¯03) : 47,925,000 (16.7% of US)

  • Trade volume : World¡¯s 12th (2.4% of the total global trade)

Current agricultural conditions

Economic size of agriculture & forestry
  • 22 trillion and 833 billion won

  • Share to the total: 3.6%
Number of Employees in agriculture & forestry
  • 1,877 thousand people

  • Share to the total: 8.5%

Farmland size and its use for each crop

Agricultural production Trends


Import & Export volume
  • Major export items : Kimchi, chestnut, ginseng, paprika, pear
  • Major import items : beef, corn, wheat, soy bean, pork

Grain Self-Sufficiency
  • Grain Self-Sufficiency is continuously decreasing


Annual Consumption volume per capita


Income comparison between people in urban & rural areas
Income gap continues to increase : (¡¯95)95.1% ¡æ (¡¯03)75.3%


Rural Population
  • Rural population is continuously decreasing due to rapid industrialization.


Framework of Agricultural Policies

< Comprehensive Plan for Agriculture & Rural community >


9 Key tasks for Agricultural Innovation

1. Nurturing Professional farmers

¢Â Rice industry : Increasing number of Professional rice farmers with 6 ha farmland to 70,000
                               by 2010
   - Increasing Support for retired aged farmers
   - Deregulating farmland and Introducing ¡®Farmland-bank system¡¯

¢Â Livestock Industry : Nurturing Professional livestock farmers with high quality brands
   - Increasing share of the production of 20,000 livestock Professional farmers to 85% by 2013

¢Â Horticulture industry : Reforming marketing system and Organizing producers
   - Promoting Joint marketing centering around APC

2. Raising Young farmers

¢Â Nurturing Young and competent beginner-farmers with expert knowledge and
    management mind

   - Selecting more than 1,000 beginner- farmers under the age of 35 and Providing fund to them
   - Agricultural internship, Sponsorship for beginner- farmers

¢Â Innovating Farmer¡¯s management
   - Technical and management Consulting
   - Nurturing 450 Marketing experts every year

¢Â Nurturing main regional group by Developing ¡®Regional Cluster¡¯

3. Stabilizing Farmer¡¯s income

¢Â Introducing a variety of Direct payment programs (Increasing budget to 23% by 2013)
   - Strengthening Paddy field environment conservation program and Decoupled income support
   - Introducing Direct payment for Environment-friendly livestock farming and Support for Less-favored areas (from 2004)

¢Â Strengthening Crop-insurance against natural disaster
   - Increasing the number of items covered by the insurance (6->30) and Introducing ¡®National Reinsurance¡¯ (¡®04)

¢Â Permanently establishing ¡®Work-out¡¯ system
   - Assisting farmers confronted with temporary management crisis due to natural disasters or to price drop

4. Securing Food safety

¢Â Agricultural Product
   - Introducing ¡®Good Agricultural Practices (GAP)¡¯ program
   - Strengthening Monitoring system in distribution process (increasing test lab. in city and in county)

¢Â Livestock Product
   - Expanding Hazard Analysis of Critical Control Point (HACCP) : Slaughtering, Processing -> Breeding, Storing, Selling
   - Strengthening comprehensive animal quarantine system

¢Â Introducing ¡®Traceability system¡¯
   - Revealing information on production processes of vegetable, fruit and beef

5. Promoting Environmental-friendly farming

¢Â Reducing chemical fertilizers (by 40% until 2013)
   - Developing and promoting Environmental-friendly farming using natural predators and microorganisms

¢Â Promoting Environmental-friendly farming system Connecting livestock and
   crop farming

   - Utilizing animal manure as resource, Livestock product registration system, Direct payment for Environmental-friendly livestock farming

¢Â Reviewing Environmental-friendly management system
   - Improving certificate system, Expanding direct payment for environmental-friendly farming

6. Developing Scientific & technological farming

¢Â Promoting new varieties and Developing and Spreading cultivation technologies
   - Developing and extending necessary technology such as environment-friendly post harvest management technology
   - Exploring functional food and developing its processing technology

¢Â Creating new added value using Bio Technology
   - Pursuing ¡®Bio-Green 21¡¯ project
   - Stimulating agriculture as an advanced industry

7. Advancing Quality

¢Â Expanding high quality distribution system
   - Washing, Grading, Packing, Processing, etc.

¢Â Providing information of items by using Information Technology (IT)
   - Providing necessary information such as market situation through PDA etc.

¢Â Boosting up agricultural product export to more than 5 billion by 2013
   - Increasing number of export focused site and of distribution center
   - Introducing Joint brand system

8. Promoting Rural welfare conditions

¢Â Increasing support for Pension and Health insurance
   - Increasing support for Pension premium to maximum of three times the current support
   - Increasing reduction rate of Health premium : Current 22% -> 50% in 2005

¢Â Reducing Farmer¡¯s education fee for their children
   - Increasing support for Baby care fee and High school tuition fee
   - Providing Scholarship to farmers¡¯ children who major agriculture in Universities

¢Â Enhancing welfare for female farmers
   - Creating Female farmers¡¯ center and Providing more house helpers for female farmers

9. Developing Rural community

¢Â Developing Key rural area and its suburbs
   - Developing 194 towns as Central places by 2013
   - Developing around 1000 village groups by grouping 3~5 villages (Providing 70 billion won for each village group)

¢Â Creating various jobs by utilizing natural resources in rural community
   - Linking One company with One town
   - Promoting Rural tourism such as programs for teenagers
   - Nurturing folk village industry
   - Expanding Rural-industrial complex : (¡¯03) 296 -> (¡¯13) 394


Vision of Agriculture & Rural community in 2013

Agriculture : Sustainable bio-industry
  • High value added industry utilizing IT and BT
  • Industry providing Safe food and Multi-functionality
Farmer : Balancing urban worker income

  • Income gap per capita between urban and rural area : (¡¯02)90%¡æ(¡¯08)104¡æ(¡¯13)105
Rural community : Lively place with rural amenities

  • Creating lively and humane Community by improving living conditions and digitalization.