Agricultural Policy Monitoring and Evaluation 2025

19. Korea

Main findings

Support to agriculture

Support as a share of gross farm receipts is the fourth highest in the OECD. The Producer Support Estimate (PSE) was to 41% of gross farm receipts in 2022-24, down from 53% in 2000-02.

Market Price Support (MPS) remains the main component of producer support, representing 85% of support to farmers over 2022-24 and covering key commodities such as rice, soybeans, barley, garlic, red peppers, and pig meat. Market-distorting transfers in key imported commodities result from the maintenance of tariff rate quotas (TRQs) with high out-of-quota tariffs. On average, domestic producer prices are 54% higher than border reference prices, although this difference has decreased over the past decades.

Budgetary support mostly consists of direct payment programmes, agricultural insurance schemes and payments based on variable input use. This support has been steady over the previous two decades, accounting for 14% of gross farm receipts in 2000-02 and 2022‑24.

The General Service Support Estimate (GSSE) declined from 10% of Total Support Estimate (TSE) in 2000-02 to 7% in 2022-24 but remains higher than the OECD average of 3.5%. The majority (52%) of GSSE goes to developing and maintaining infrastructure, particularly irrigation facilities. Agricultural knowledge and innovation system (24%), public stockholding (13%), and inspection and control (10%) are the next largest GSSE components.

Korea’s TSE relative to GDP declined from 2.8% in 2000-02 to 1.3% in 2022-24, though it remains higher than the OECD average of 0.5%.

Key recent policy changes

In March 2024, the Strategic Plan for Responding to Declining Rural Area Under the New Rural Paradigm was announced. It is designed to address rural population decline and create new development opportunities for agriculture and rural areas. The strategy supports new rural business and helps establish agri-food chains linking upstream and downstream agriculture sectors.

In March 2024, direct payments under the Direct Payment System for Farmland Transfers by Retirement were increased from KRW 3.3 million (USD 2 420) to KRW 6.0 million (USD 4 401) per hectare sold each year. The payments are either made in monthly instalments of KRW 500 000 (USD 367) or as a lump sum. The eligibility was extended to farmers aged 65-84 (previously 65-74), with payments available until age 84 (previously 75). This is designed to encourage older farmers to retire and transfer their farmland to younger farmers by offering monthly payments to farmers who sell their land for up to 10 years.

The First Master Plan for Promotion of Smart Farming Industry (2025-2029) was established in January 2025. This plan outlines key policies and initiatives to foster smart agriculture over the next five years. The plan aims to adopt smart agricultural technologies in 35% of the country’s 55 000 hectares of greenhouses and apply at least one smart agricultural technology to 20% of the cultivated area for major field crops under mechanisation.

The Innovation Plan for Agri-food Research and Development (R&D) was approved in March 2024. This plan was designed to resolve structural issues in and improve the efficiency of the agricultural R&D system. It includes expanded funding for R&D, strengthened international cooperation and reorganised investment areas for the Ministry of Agriculture, Food and Rural Affairs (MAFRA) and the Rural Development Administration to clarify responsibilities, reduce budget overlaps, and enhance efficiency.

Assessment and recommendations

• Several of Korea’s free trade agreements, in application since at least 2016, contain environment related co-operation provisions and two specifically include climate change mitigation objectives. Despite this, environmental challenges remain. Nitrogen and phosphorus surpluses remain well above the OECD average. Korea has set greenhouse gas reduction targets for the agricultural sector and developed a plan to achieve these. Development of technologies that reduce the environmental impacts of agriculture, and adoption of technologies and practices that are already available will be important for meeting Korea’s sustainable agriculture objectives.

• Commodity-specific support is the dominant support type and can reduce farmers’ incentives to try new products by encouraging production of specific commodities. Making support less commodity-specific can improve farmers’ capacity to adapt to new challenges and opportunities more quickly.

• Korea’s agricultural innovation system is dominated by public actors such as public research institutions and public extension services. The recent Innovation Plan for Agri-food Research and Development (R&D) aims to improve the efficiency of the agricultural R&D system. Concentrating public agricultural R&D more on preliminary research, which is complementary to private R&D, and encouraging a more collaborative and demand-driven system between public and private sectors including higher education institutions can support agricultural innovation. Agricultural innovation will be important for improving Korea’s TFP annual growth rate (declined from 3.6% in 1991-2000 to 0.8% in 2013-2022) and nutrient balances which are 7.5 and 21.2 times the OECD average for nitrogen and phosphorus respectively.

• As part of efforts to enhance sustainable productivity growth, and address challenges such as extreme weather events and a declining aging workforce, the spread of smart agriculture is being emphasised in Korea. While some progress has been made such as the development of smart farm technologies by leading companies, it remains in the early stages of government-led dissemination. Stronger partnerships with the private sector can accelerate development and dissemination of smart farm technologies.

• Agricultural disaster insurance has helped stabilise the income of farmers and government support for insurance premiums have helped increase farmers’ use of insurance. However, it is necessary to evaluate whether agricultural insurance premium subsidies are affecting farmers' other risk management efforts or hindering the development of the agricultural insurance market. In the long term, this form of support should be gradually reduced to increase the role of the private sector.

• In 2024, hot weather reduced cabbage yields and caused inflation in cabbage prices. Korea released public stock holds of cabbage and reduced the import tariff for cabbage to zero, increases to future public stockholding of cabbage were announced. Strengthening resilience requires a shift from reactive policy responses to introducing proactive approaches before climate risks materialise. Korea should consider the climate risk landscape for key agricultural commodities over long-term timeframes and introduce policies that reduce risk and build farmer resilience to maintain agricultural productivity and ensure food security in the face of climate change.

Development of support to agriculture

Table 19.1. Korea: Estimates of support to agriculture

Million USD

	1986-88	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	16 985	26 356	45 662	44 837	45 994	46 157
of which: share of MPS commodities (%)	74.33	63.27	57.36	60.89	56.31	54.89
Total value of consumption (at farm gate)	17 247	33 194	59 162	60 417	62 711	54 356
Producer Support Estimate (PSE)	10 683	14 463	19 814	19 461	19 778	20 203
Support based on commodity output	10 563	13 502	16 794	16 705	16 416	17 261
Market price support¹	10 563	13 502	16 794	16 705	16 416	17 261
Positive market price support	10 563	13 502	16 794	16 705	16 416	17 261
Negative market price support	0	0	0	0	0	0
Payments based on output	0	0	0	0	0	0
Payments based on input use	90	470	553	476	576	605
Based on variable input use	29	207	360	277	374	429
with input constraints	4	34	45	44	47	44
Based on fixed capital formation	57	246	146	150	154	135
with input constraints	0	18	30	34	30	27
Based on on-farm services	4	17	46	50	48	41
with input constraints	0	0	0	0	0	0
Payments based on current A/An/R/I, production required	29	490	546	495	698	446
Based on Receipts / Income	29	292	99	74	153	71
Based on Area planted / Animal numbers	0	198	447	421	544	375
With input constraints	0	160	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	1 921	1 784	2 089	1 891
With variable payment rates	0	0	0	0	0	0
with commodity exceptions	0	0	0	0	0	0
With fixed payment rates	0	0	1 921	1 784	2 089	1 891
with commodity exceptions	0	0	0	0	0	0
Payments based on non-commodity criteria	0	1	0	0	0	0
Based on long-term resource retirement	0	1	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0	0
Percentage PSE (%)	62.27	52.66	40.71	40.89	40.07	41.15
Producer NPC (coeff.)	2.50	1.97	1.54	1.58	1.52	1.54
Producer NAC (coeff.)	2.65	2.11	1.69	1.69	1.67	1.70
General Services Support Estimate (GSSE)	1 065	2 676	3 332	3 326	3 302	3 367
Agricultural knowledge and innovation system	67	243	797	846	848	697
Inspection and control	26	126	329	319	342	327
Development and maintenance of infrastructure	467	1 810	1 733	1 744	1 713	1 740
Marketing and promotion	0	26	35	35	34	36
Cost of public stockholding	505	471	438	383	365	565
Miscellaneous	0	0	0	0	0	0
Percentage GSSE (% of TSE)	8.92	15.62	14.36	14.56	14.28	14.26
Consumer Support Estimate (CSE)	-10 148	-15 373	-20 757	-21 625	-20 937	-19 708
Transfers to producers from consumers	-10 017	-12 812	-15 706	-16 311	-15 351	-15 456
Other transfers from consumers	-205	-2 654	-5 095	-5 366	-5 629	-4 291
Transfers to consumers from taxpayers	73	93	44	51	43	39
Excess feed cost	0	0	0	0	0	0
Percentage CSE (%)	-58.96	-46.08	-35.12	-35.82	-33.41	-36.28
Consumer NPC (coeff.)	2.45	1.86	1.54	1.56	1.50	1.57
Consumer NAC (coeff.)	2.44	1.85	1.54	1.56	1.50	1.57
Total Support Estimate (TSE)	11 821	17 232	23 190	22 838	23 123	23 609
Transfers from consumers	10 221	15 466	20 801	21 676	20 980	19 747
Transfers from taxpayers	1 804	4 420	7 484	6 528	7 772	8 152
Budget revenues	-205	-2 654	-5 095	-5 366	-5 629	-4 291
Percentage TSE (% of GDP)	7.37	2.83	1.26	1.27	1.26	1.26
Total Budgetary Support Estimate (TBSE)	1 258	3 730	6 396	6 133	6 707	6 348
Percentage TBSE (% of GDP)	0.78	0.62	0.35	0.34	0.36	0.34
GDP deflator (1986-88 = 100)	100	209	323	314	320	334
Exchange rate (national currency per USD)	811.83	1 224.25	1 320.16	1 291.45	1 305.66	1 363.38

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Korea are: barley, garlic, red pepper, Chinese cabbage, rice, soybean, milk, beef and veal, pig meat, poultry and eggs.

Source: OECD (2025), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

The Framework Act on Agriculture, Rural Community and Food Industry, enacted in 2000, establishes Korea’s agricultural policy framework. It requires the government to establish a national policy plan every five years that provides direction for national policies for sustainable development of agriculture and rural communities, to ensure the stable supply of safe agricultural products and quality food, and to enhance the level of income and quality of life of farmers. The 3^rd National Plan to Develop Agriculture, Rural Communities and the Food Industry (2023-27) was established in 2023. This recent plan includes five policy objectives: 1) ensuring robust food security; 2) fostering the agri-food industry; 3) strengthening the safety net for farm households; 4) ensuring safe food; and 5) developing rural areas.

The public stockholding scheme for rice, known as the Public Storage Programme for Emergencies, was established in 2005. It addresses supply instability caused by grain shortages or emergencies such as natural disasters. During the harvest season rice and grain purchased at market prices and stockpiled, targeting maintaining reserves equivalent to 17% to 18% (two months) of annual national consumption (Ministry of Agriculture, n.d.[1]). To prevent quality deterioration a certain amount is replaced annually. The government has a similar public storage programme for soybeans.

The Direct Payment System, revised in May 2020, aims to stabilise the incomes of small to medium-sized farms and to improve farm compliance with regulatory obligations in agriculture and rural communities. Farmers must comply with 17 rules covering environmental protection, food safety, and farmland management standards such as standards for pesticide application. There is also an annual direct payment designed to maintain the income of retiring farmers who sell their farmland to younger farmers.

Agricultural disaster insurance, revenue insurance and work safety insurance are provided by private companies with government subsidies covering 50% of the insurance premiums. The agricultural disaster insurance scheme, which covers 76 crops (including apples, pears, grapes, onions, and garlic), and 16 livestock products protects farmers against losses in crop yields and livestock. Agricultural revenue insurance covers 15 crops and protects farmers from income losses caused by reduced revenue from declines in market prices and events such as natural disasters. Work safety insurance covers injuries, illnesses and accidents, or deaths of farm workers that occur during on-farm work and contributes to stabilising farm income.

The Act on the Restructuring and Regeneration Support of Rural Areas sets the legal foundation for managing rural spaces. The Act addresses unplanned development and depopulation in rural areas by establishing an integrated support system based on region-led, long-term plans for rural spaces. Its goal is to improve living conditions and revitalise the local economy. The Ministry of Agriculture, Food and Rural Affairs (MAFRA) works with local governments and relevant ministries to promote entrepreneurship and job creation based on resident-led, locally tailored spatial plans, which in turn support population inflow and the improvement of living infrastructure.

The Enhanced Update of its First Nationally Determined Contribution for achieving the Net-zero across all the sectors was announced in November 2021. This requires GHG emissions in agriculture and fisheries to decline 27.1% relative to 2018 levels by 2030 and 37.7% by 2050. Accordingly, the 2050 Agri-Food Carbon Neutrality Strategy was revealed in December 2021. This sectoral strategy contained a detailed implementation plan for GHG emission reduction for food production, distribution, consumption and energy conversion. The National Framework Plan for Carbon Neutrality and Green Growth, established in April 2023, sets the agricultural sector’s greenhouse gas reduction target at 17.2 MtCO₂eq in 2030. This is a 22.5% reduction compared to 2018 levels (22.2 MtCO₂eq). The national framework plan includes the development and application of low-carbon practices and technologies such as paddy water management, fertiliser reduction, low-methane feeds and manure management. As a member of the Global Methane Pledge, Korea is working to reduce methane emissions in the agricultural sector by 20.6%.

Tariffs and tariff rate quotas (TRQs) are the main agriculture trade policy measures. A total of 63 agricultural products are subject to TRQs, including rice, corn and soybeans. In-quota tariff rates range from 0% to 50% with out-of-quota rates between 9% and 887%. A TRQ volume of rice (408 700 tonnes, about 9.9% of annual rice consumption) has been maintained at a 5% tariff rate (the out-of-quota tariff is 513%).

Korea has concluded 22 bilateral and regional free trade agreements (FTAs). Some of these agreements include significant tariff reductions for livestock and fruit products, but rice is excluded from tariff concessions. Import tariffs on various meat products from major exporting countries such as the United States, Australia, Canada and the European Union are being progressively phased out over periods ranging between 10 and 15 years from the entry into force of the respective agreements.

Policies for trade and sustainability in agro-food markets

Several of Korea’s free trade agreements contain environmental co-operation provisions related to sustainable agriculture production. For instance, the agreement between Korea and the Association of Southeast Asian Nations includes co-operation on technical assistance in sustainable development. The agreements between Korea and Columbia, and Korea and Peru, both promote partnerships for projects on the conservation and management of water resources for agricultural use, sustainable agricultural development, and the application of good agricultural practices among other areas (Frezal and Deuss, 2025[2]).

Some of Korea’s free trade agreements include objectives specific to climate change mitigation:

• The Free Trade Agreement between Australia and Korea: both countries agree to promote co-operation on innovation, research and development, including on scientific and technical developments in climate change adaptation and mitigation (in force since 2014) (Frezal and Deuss, 2025[2]).

• The Free Trade Agreement between New Zealand and Korea: both countries agree to encourage and facilitate policy dialogue and exchange information on ways to promote and expand trade and investment in agriculture, including the area of sustainable production systems, for example climate change impacts, mitigation and adaptation, and the role of the agriculture, forestry and fisheries sectors in contributing to low-carbon green growth (Frezal and Deuss, 2025[2]).

Korea has a Low-Carbon Agricultural Product Certification System. The certification system aims to promote sustainable agri-food development, reduce agricultural GHG emissions, and stimulate demand for low-carbon agricultural and livestock products. Certification is granted when the GHG emissions of a product are lower than the national average for that product. Support is provided for certification and evaluation of farmers seeking certification, linking certified farmers with distributors of certified low-carbon agricultural and livestock products, and training of auditors to ensure proper verification of the certification.

The Voluntary Greenhouse Gas (GHG) Reduction Project in Agriculture and Rural Areas incentivises GHG abatement. Farmers can earn an incentive of KRW 10 000 (USD 7.33) per tonne of CO₂-equivalent for voluntary projects that apply low-carbon agricultural technologies, the methodology for the project and GHG abatement is certified by a committee.

Korea also allows entities that are not regulated in the emissions trading scheme, such as small businesses and agricultural enterprises, to convert verified emission reductions into tradable carbon credits (KOC), providing economic incentives for voluntary GHG reduction in non-regulated entities. In 2024, the average market value of carbon credits reached approximately KRW 10 000 (USD 7.33) per tonne of CO₂-equivalent.

Recent policy developments

Domestic policy developments in 2024-25

Revitalisation of rural areas

The Strategic Plan for Responding to Declining Rural Area Under the New Rural Paradigm was announced in March 2024. The objective of the strategy is to address rural population decline and create new development opportunities for agriculture and rural areas. The strategy aims to transform rural areas into places of opportunity for people, businesses, resources, and social services. The strategy includes:

• A rural business start-up package that provides comprehensive support that ranges from resource surveys, funding, and consulting services to settlement assistance including housing for newcomers.

• Establishing agri-food chains that link and integrate upstream and downstream sectors of agriculture-including raw material procurement, manufacturing, processing, food technology, and green bio industries, and designating “autonomous regulatory innovation zones” to provide customised incentives such as regulatory easing in rural areas at high risk of depopulation.

• Improving infrastructure for rural living and tourism, relaxing regulations to allow the construction of accommodation on farmland, supporting local governments to develop agritourism opportunities, and facilitating the listing of vacant homes on private-sector platforms to promote their use.

• Designating “Revitalisation Zones” in 139 municipalities, where residential, industrial, and service functions are strategically integrated.

• Improved service delivery, including healthcare, education and transportation, in rural areas.

In March 2024, MAFRA partially revised the Farmland Pension System to ensure stable retirement for elderly farmers and expand benefits for recipients. A new farmland pension product was launched that allows elderly farmers who wish to retire to lease their farmland to the Farmland Bank for a certain period and then sell it, allowing them to receive not only the farmland pension but also direct payments and rent, thereby ensuring a more stable life in their old age.

Facilitation of generational renewal in agriculture

In March 2024, direct payments under the Direct Payment System for Farmland Transfers by Retirement were increased from KRW 3.3 million (USD 2 420) to KRW 6.0 million (USD 4 401) each year per hectare sold. The payments are either made in monthly instalments of 500 000 KRW (USD 367) or a lump sum. Eligibility was extended to farmers aged 65-84 (previously 65-74), with payments available until age 84 (previously 75). This is designed to encourage older farmers to retire and transfer their farmland to younger farmers by offering ongoing payments to farmers who sell their land.

Risk management

Risk management was strengthened in response to agricultural disasters by expanding crop insurance coverage and regions eligible for benefits from “Crop Disaster Insurance” (from 73 crops and 55 regions in 2024 to 76 crops and 64 regions in 2025). Additionally, measures for agricultural disaster recovery support were improved, such as by implementing realistic damage recovery unit prices or adding new support items.

Supporting smart farming

Smart farming refers to the adoption of advanced technologies (artificial intelligence, automation and the internet of things) in farm operations. Korea has introduced measures that promote smart farming to address agricultural challenges such as extreme weather events and a declining agricultural workforce.

The Smart Farming Industry Development Plan, established in March 2024, promotes regulatory reforms and institutional improvements to spread smart farming technologies and encourage vertical farming. Farmers operating vertical farms are now eligible for agricultural policy support, such as funding, and the law was changed to allow vertical farms to be installed in industrial complexes.

The First Master Plan for Promotion of Smart Farming Industry, established in January 2025, outlines key policies and initiatives to foster smart agriculture over the next five years. The plan aims to adopt smart agricultural technologies in 35% of the country’s 55 000 hectares of greenhouses and apply at least one smart agricultural technology to 20% of the cultivated area for major field crops under mechanisation. The plan was a requirement of the Act on Fostering and Supporting of Smart Farming (July 2024). The key initiatives include:

• Designating four “Smart Farming Fostering Districts” that integrate smart agriculture and related industries, with long-term lease smart farm options available for young people.

• Expanding pilot smart agriculture sites, such as cabbage and apple farms, to have education and demonstration functions.

• Expanding specialised training institutions offering smart agriculture practical education to two additional locations and introducing a Smart Agriculture Manager Qualification System.

• Strengthening research and development efforts, and refining standards and financing systems for the distribution of autonomous farming machinery.

• Efforts will be made to standardise ICT equipment and data applications, facilitate smart farm exports, and strengthen government-to-government cooperation for overseas market expansion.

Promoting research and development

The Innovation Plan for Agri-food Research and Development was approved in March 2024. This plan was designed to resolve structural issues in and improve the efficiency of the agricultural R&D system. The key initiatives include:

• Reorganising investment areas for MAFRA and the Rural Development Administration (RDA) to reduce budget overlaps, strengthen institutional missions, and enhance efficiency.

• Expanding investment in strategic R&D in energy-saving technologies and green bio-innovation.

• Strengthening international cooperation in agricultural R&D with a support council established to systematically promote international R&D collaborations which has previously been on a small scale and one time basis. Additionally, partnerships with global research institutions will be reinforced, and support for domestic companies entering overseas markets will increase.

• Expanding support for innovative and ambitious research to drive future growth. The Agri-Food Convergence Technology Research Council, involving experts from diverse fields, was formed to proactively discover future technologies.

Trade policy developments in 2024-25

Several free trade agreements (FTAs) were recently concluded, including the Strategic Economic Cooperation Agreement with Ecuador (October 2023), the Comprehensive Economic Partnership Agreement with the United Arab Emirates (October 2023), the FTA with the Gulf Cooperation Council (December 2023), and the Economic Partnership Agreement with Georgia (November 2024). These agreements are scheduled to be formally signed in 2025. The FTA with the Philippines came into force in December 2024, after it was concluded in October 2021 and signed in September 2023.

In May 2024, in response to rising wholesale cabbage prices, Korea reduced the import tariff on cabbage from 27% to 0%. Cabbage yields in Korea were impacted by hot weather and the change aimed to increase supply through private imports reducing the price of cabbage.

Policy context

Key economic and agricultural statistics

Korea’s economy has been growing, its GDP has more than tripled since 2000. However, the growth rate has slowed and is converging with that of advanced OECD economies. Korea is a high-income country in terms of per capita incomes. As of 2023, Korea’s agricultural land was 1.6 million ha, 16% of the total land area. Korea has one of the highest population densities among OECD countries and is experiencing a rapidly ageing population due to a low fertility rate and increased life expectancy. The ageing of rural communities is much more severe, as young generations have migrated to urban areas.

Trade is an important driver of Korea’s economy. In 2023, trade accounted for 34.6% of GDP. The remarkable growth of the Korean economy changed the status of agriculture. In the 1970s, agriculture contributed approximately 25% to GDP; this share declined to 4.1% in 2000 and 1.5% in 2023. Over the same period, the share of agriculture in national employment decreased from 10.6% to 5.3%. Both agricultural exports and imports slightly increased over this period. Since 2000, crop production has declined, and the production livestock products has increased. Crop production accounted for 54% of the total value of agricultural production in 2023 down from 75% in 2000. Over the same period, the share of livestock products in agricultural production increased from 25% to 46%.

Table 19.2. Korea: Contextual indicators

	Korea		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	904	2 871	2.3%	1.9%
Population (million)	47	52	1.1%	1.0%
Land area (thousand km2)	96	98	0.1%	0.1%
Agricultural area (AA) (thousand ha)	1 973	1 584	0.1%	0.1%
			All countries1
Population density (inhabitants/km2)	473	516	52	64
GDP per capita (USD in PPPs)	19 224	55 525	9 368	29 013
Trade as % of GDP	28.9	34.6	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	4.1	1.5	2.9	3.5
Agriculture share in employment (%)	10.6	5.3	-	-
Agro-food exports (% of total exports)	0.9	1.4	6.4	8.1
Agro-food imports (% of total imports)	5.2	5.8	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	74.7	54.1	-	-
Livestock in total agricultural production (%)	25.3	45.9	-	-
Share of arable land in AA (%)	87.1	83.3	31.8	33.3

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

Economic growth increased from 1.4% in 2023 to 2.3% in 2024. Exports remain a driver of Korea’s GDP growth and domestic demand picked up in the third quarter of 2024 (OECD, 2024[3]). The unemployment rate increased from a two decade low of 2.7% to 2.9%. Inflation peaked at 5.1% in 2022, and continued to decline from 3.6% in 2023 to 2.3% in 2024 (Figure 19.4), rising food prices contribute to lingering inflationary pressures in Korea (OECD, 2025[4]).

Korea is a large net importer of agro-food products. Agro-food imports and exports in Korea have both increased more than 400% since 2000. In 2023, agro-food imports amounted to USD 37.3 billion, a decrease from USD 40.9 billion in 2022. A small majority, 52%, of agro-food imports are for consumption with 8% primary for consumption and 44% processed for consumption, the rest are used in industry. Agro-food exports rose from USD 8.4 billion in 2022 to USD 9.1 billion in 2023. The majority, 87%, of agro-food imports are for consumption with 16% primary for consumption and 71% processed for consumption (Figure 19.5). Export products comprise a significant portion of processed foods such as noodles, snacks and beverages. Key imported agricultural commodities include livestock products such as beef, pork, and dairy products, as well as grains including maize, soybeans, and wheat.

Agricultural output in Korea has annually grown by 0.2% between 2013 and 2022, lower than the world average during this period. This growth has mainly been driven by Total Factor Productivity (TFP) growth, offset by reductions in the use of primary factors and intermediate input. The average TFP annual growth rate in Korea declined from 3.6% in 1991-2000 to 0.8% in 2013-22, in line with the global average during this period (Figure 19.6).

The average nitrogen and phosphorus surpluses remain well above OECD averages and have increased by 2.0% and 33.6%, respectively, since 2000. The recent increase in nitrogen balance was primarily attributed to livestock manure rather than chemical fertilisers. The share of agriculture in water abstractions experienced a slight decrease compared to the level in 2000 and is close to the OECD average level. Korea utilises a significant amount of water for rice paddy fields in agriculture. Meanwhile, Korea’s water stress has increased from 27.1 to 28.1. The annual GHG emissions from the agricultural sector accounted for 3.2% of total emissions, well below the OECD average of 10.1% (Table 19.3)

Table 19.3. Korea: Productivity and environmental indicators

	Korea		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	3.6%	0.8%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	218.5	222.9	32.0	29.7
Phosphorus balance, kg/ha	39.6	52.9	3.3	2.5
Agriculture share of total energy use (%)	2.9	1.0	1.7	2.0
Agriculture share of GHG emissions (%)	4.3	3.2	8.7	10.1
Share of irrigated land in AA (%)	41.0	39.9	-	-
Share of agriculture in water abstractions (%)	53.4	48.9	47.0	49.5
Water stress indicator	27.1	28.1	8.7	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Korea’s agricultural sector has undergone rapid structural change, following the country’s rapid industrialisation and economic growth. After the Korean War, it was vital for Korean agriculture to be able to feed the population. From the 1950s to the 1970s, the focus was on increasing crop productivity and achieving self-sufficiency in staple crops, particularly rice. During the process of industrialisation, the agricultural sector also provided cheap and high-quality labour to the manufacturing sector and laid a foundation for stable economic growth.

Throughout the late 1980s and 1990s, the main policy objectives shifted to restructuring the agricultural sector and improving its competitiveness. The government adopted more market-oriented policy frameworks, and this period was marked by the progressive liberalisation of agriculture and food markets via free trade agreements. In the late 1990s, policy objectives further diversified into areas such as enhancing productivity, improving long-term agricultural sustainability and increasing provision of public goods.

During the late 1990s and 2000s, trade measures on agricultural products were gradually converted into tariffs and tariff rate quotas (TRQs), with the exception of rice as agreed in the Uruguay Round Agreement on Agriculture. In January 2015, the non-tariff measure on rice was also replaced by a TRQ.

Slowed economic growth and demographic changes moved objectives in the 2000s further from growth to broader public policy goals. These goals included revitalising the rural economy, expanding export markets, improving the environmental performance of agriculture and promoting the food industry. A holistic food policy began to take shape that took into account production, consumption, safety, nutrition, welfare and the environment, as well as food availability for low-income groups. This entailed a shift from central government leadership to horizontal governance for participation and collaboration with a larger role for local governments and the stakeholders.

Support to producers in Korea has been gradually decreasing since 1990. However, the share of PSE remains high, accounting for about 41% of gross farm receipts as of 2024. While MPS makes up most of the producer support, the proportion of payments not requiring production has increased since the introduction of the new direct payment scheme in 2020, which was decoupled from the current production (Figure 19.7).

Table 19.4. Korea: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to 1970s	Relatively closed economy Policy focus on productivity and self-sufficiency	Price support and government procurement programmes for crops Subsidies for inputs (including fertilisers and seeds) Land reclamation, land consolidation and water system projects to rearrange the production base R&D and extension projects to enhance productivity (the Rural Development Administration established in 1962) Development of new rice varieties such as Tongil
1980-1990	Exposure of domestic producers to open market Structural adjustment programmes	Non-tariff measures replaced by tariffs and tariff rate quotas (except for rice) Rural restructuring plan (announced in 1991) Government procurement programme for crops Direct payment programmes (early retirement payments from 1997) Agricultural insurance scheme (from 1997) Investment in the renovation of the production base and modernisation of distribution facilities
2000-present	Responding to changing market demands Diversified policy objectives	Tariffs and tariff rate quotas Tariff concession through Free Trade Agreements Public stockholding scheme for major staple crops Direct payment programme for rice (2005-2019) Direct payment scheme reformed (from 2020) Environment-friendly agricultural programmes

References

[2] Frezal, C. and A. Deuss (2025), “Trade-related measures linked to the environmental sustainability of agriculture: A stocktake and typology”, OECD Food, Agriculture and Fisheries Papers, No. 216, OECD Publishing, Paris, https://doi.org/10.1787/ebfdca09-en.

[1] Ministry of Agriculture, F. (n.d.), Public Stock Holding System, https://www.mafra.go.kr/english/1451/subview.do (accessed on 5 May 2025).

[4] OECD (2025), OECD Economic Outlook, Interim Report March 2025: Steering through Uncertainty, OECD Publishing, Paris, https://doi.org/10.1787/89af4857-en.

[3] OECD (2024), OECD Economic Outlook, Volume 2024 Issue 2, OECD Publishing, Paris, https://doi.org/10.1787/d8814e8b-en.