Agriculture policy

Overview of Korean Agricultural Policy & Direction

(A) General direction

- New agricultural policy frame arrangement intending to the society of balanced development

• Agricultural policy casting from agriculture-centered policy but running parallel with farming policy
  

- [Agriculture as an industry] intending to the effectiveness of market-oriented

• Supports i.e. management scope magnification, higher quality agricultural production and export magnification
  

- Social security support expansion for [farmers as the weak of the society]

• Strengthening liaison of agricultural structure reform with the circulation_first inspection and reflection to the policy for petty and small farming management and income structure, welfare realities
  

(B) Point task

1. Farmhouses' debt decrease

- Considering epoch-making debt decrease plan in order to enable stable agriculture for the farmhouses whose debt burden is heavy

• The Debt Reduction Special Management Law arrangement showing repayment condition of the policy funds debt arranged as 5 years of deferment/15 years of repayment/ 1.5% of interest by the regular session of the National Assembly in order to prevent vicious circles of farmhouses' debt
  

•Farmhouses' debt: 27.6 trillion won (15.1trillion won of policy funds, 12.5trillion won of mutual funds and others)

- Selective support (Work-Out) for farmhouses having overdue (difficulties for normal repayment), in case of restoration, through management evaluation

• Magnifying and developing [Management Restoration Support System]
  

- (interest 4%, support scale 50,000 million won)

2. The Direct Payment expansion

- Interim evaluation regarding the currently operating Direct Payment and steep supplement

• Sublation of indiscriminate support and strengthening incentive for environment intimate agriculture
  

- Long-term plan establishment magnifying the Direct Payment budget to 20 % off of agriculture budget

• The Direct Payment magnification having liaison with structure reform and promotion/ keeping function of public interest/etc
  

ㆍForeign direct payment budget ratio: USA 36%, Japan 13, and Korea 7

3. Farming community activation

- Income increase through fostering traditional food industry and excavating and improving various restrictions obstructing farmers' benefit
- Infra fostering in order to induce city-dwellers' exterior investment

• Active and practical usage of given conditions' changing i.e. "5 days a week work", exemption from capital gain tax for farming house acquired, etc.
  
• Operating investment inducement center and activating local autonomous entities' initiative participation
  

4. Improvement of farming welfare

- Enacting [the Farming and Fishing communities' welfare Law] and building pan-governmental drive system

• Organizing special committee under the influence of the Prime Minister and establishing long-term plan and inspecting its performance
  

- Discussion with related ministries about the extending time-limit plan for Farming and Fishing Communities' Special Tax in order to arrange welfare related financial investment resources

• Presidential election pledges: the Welfare Law establishment and the extension of the Farming and Fishing Communities' Special Tax
  

5. Cooperative association reformation

- Autonomous reformation motivation by the power of reformation will of farmers' groups - gradual nerves separation of cooperative federations and strengthening scale enlargement •and management responsibility of front association