( 6th/ April / 2007. )

        Main Strategy for Agricultural 
          Development in Korea

     A Paper for International Training Course 
      organized by Korea Rural Community &
              Agricultural Cooperation,  
          April 6th, 2007, Seoul, Korea

         Kim, Young-Chul., Ph.D.,
       Honorary Professor of Agricultural Economics              
       Kon-Kuk University, Seoul 143-701,Korea.
              e-mail : kimyoch@kornet.net

   5-year
 economic
 plan period	1st
& 2nd
(62~71)	3rd
 plan
(72~76)	4th
 plan 
(77~81)	5th
plan
(82~86)	6th
 plan 
(87~91)	7th
 plan
(92~96)	non
-plan
(97~05)	overall
period
(62~05)	
 overall
 growth rate
 (%,annual)	8.8	9.6	6.2	8.7	9.6	7.0	4.4	7.5	
 agricultural
 sector
 (%,annual)	4.9	6.1	0.6	3.8	-0.5	3.3	0.5	2.8	

  

            Year
 Industry	1964	1975	1985	1995	2005	
Primary	46.8	24.9	12.5	6.2	3.3	
Secondary	16.9	33.4	41.0	43.2	40.4	
Tertiary	36.3	41.7	46.5	50.6	56.3	

          
            
           Year
  Item	1965	1975	1985	1995	2005	
Total pop	28,705	35,281	40,806	45,093	48,294	
Farm pop	15,812	13,244	8,521	4,851	3,433	
% of Farm pop	55.1	37.5	20.9	10.8	7.1	

      

          

           Item
Year	Farm Household Y	Per Capita Income	A/B
	
        Item
Year	Farm Household Y	Farmer's(A)*	Overall(B)	A/B
	
	1000Won	US$	US$.	%	
    1965	112	65	105	61.9	
    1970	256	139	223	62.3	
1975	873	324	590	54.9	
1980	2,693	872	1,589	54.9	
1985	5,736	1,491	2,242	66.5	
1990	11,026	4,132	5,883	70.2	
1995	21,803	8,755	11,471	76.5	
2000	23,072	7,013	10,888	64.4	
2005	30,503	11,029	16,306	67.6	
* Farm household income/no.of family member in farm household.

           Year	Area under HYV
Total paddy area	Use of chemical
fertilizer per hectare	
	(%)	(Kg)	
1970	-	162	
1974	15.2	270	
1975	22.9	282	
1976	44.6	203	
1977	54.6	243	
1978	76.2	289	
1979	60.8	297	
1980	49.6	285	
1985	27.8	311	
1990	11.1	458	
1992	0.1	414	
1993	0	424	
1995	0	434	
1996	0	424	
2002	0	342	

    Year	Area
under
HYV(A)	Rice
Yield(B)	Price Policy	Self-
Sufficiency
of Rice	
Year	Area
under
HYV(A)	Rice
Yield(B)	Procurement
Price(C)	Consumer
Price(D)	Self-
Sufficiency
of Rice	
	(%)	(kg/ha)	(won/80kgs)	(%)*	(%)	
1970	0	3300	5,400	5,150	(6.1)	93.1	
1975	22.9	3,860	15,760	13,000	(27.0)	94.6	
1981	49.6	4,140	45,750	44,000	(25.1)	95.1	
1985	27.8	4,560	57,650	54,260	(34.1)	103.3	
1990	11.1	4,510	95,020	55,520	(52.7)	108.3	
1995	0	4,450	126,700	104,500	(17.5)	91.4	
2005	0	4,900	134,267	147,340	(-9.7)	101.7	
      * (C - D)/(C) , %

       

Item	1969-1978	1980-1989	1990-2005
(00‘-05’)	
 1. Government rice           procurement price	22.1	9.6	3.1(-0.2)	
 2. Consumer price index	14.6	7.3	4.8(3.2)	
 3.prices paid by farmers	18.7	8.1	5.4(4.7)	
 4. (1)  -  (2)	7.5	2.3	-1.7(-3.4)	
 5. (1)  -  (3)	3.4	1.5	-2.3(-4.9)	

                    

Year	Total 
Farm
Household
(1,000)	Average
Farm
Size
(ha)	By Size (%)	

Year	Total 
Farm
Household
(1,000)	Average
Farm
Size
(ha)	Non-
Crop
Farmer	Less Than
1.0ha	1.0-2.0ha	2.0-3.0ha	above 3ha	
1970	2,483	0.93	2.9	64.9	25.7	6.5	1.5	
1980	2,165	1.02	1.3	63.1	29.2	6.4	1.5	
1990	1,767	1.19	1.4	58.1	30.7	9.8	2.5	
2005	1,273	1.433	1.4	64.1	22.0	7.3	7.3	

     

          

Year	Total
Borrowing	Institutional
Credit	Agri.
Coop	Private
Credit	
1975	100.0	36.4	30.3	63.6	
1985	100.0	71.1	66.1	28.9	
1995	100.0	91.3	80.4	8.7	
2002	100.0	94.5	84.2	5.5	

     

     

              National Agricultural          
     Cooperative   Federation                                                                                             Provincial Branch   16 Provincial Branch of 
                                  Offices of NACF          Offices of NACF                                                    

                     District Branch    156 district branch offices
                     Offices of NACF     of NACF at Shi-Gun                                                 (city-ditrict) level     

                      Primary Societies  1,298 primary societies at
                    throughout country  "Myon"(Sub-district) level                                                                                                                    

                Member Farmers ( 2,385,789)      

                                        

                                    

              Comparison of Annual Growth Rates
           -Deposit & Loans, 1975-2005.-
                   
               deposit          loans

        
            
                                                                       (unit : %)           ITEMs	MCP	NACF	COM.BANK	

DEPOSIT	29.4	22.6	20.1     	

LOANS	31.1	20.6	19.7	

       source : nacf & bok.  

  

                                    

(unit ; %)

      

        
       (unit : mil. Won ,%) year	f.h income	CPI	PRFI	PPFI	fru.&
veg.	liv. prod.	
1996	23.9	4.9	5.2	4.3	1.0	0.4	
1997	23.5	4.7	-3.0	2.4	-0.6	-10.7	
1998	20.5	8.2	-0.3	11.3	1.3	-9.1	
1999	22.3	1.0	6.6	3.2	-4.1	8.1	
2000	23.1	2.2	1.1	6.3	-12.	-6.9	
2003	26.9	3.6	8.2	4.7	8.8	2.0	
2005	30.5	2.7	-4.0	3.9	4.9	0.3	
avrge
96-05	-	3.8	2.6	5.1	-3.4	      
-2.5	

             AGRI.- COOP.'S MARKETING SHARE

                     (2002.12.31.)

           

  

	food crops	vegtable	fruits	livs.prod.	others	total	
 total(1)
prodtion(h.ml.W)	83.7	54.1	20.6	72.4	26.1	257.0	
coop.'s
dealin(2)
(h.ml.W)	34.8	25.5	16.1	7.9	7.8	92.2	
% (2)/(1)
	41.6	47.2	78.0	11.0	29.9	35.9	

          source : nacf

                                       NEW STRATEGY FOR KOREAN                                        AGRICULTURE.
                                            PRESSURE FROM WTO SYSTEM                                                          & FORGN.EX.CRISIS.

                                                                                   
                                  1) IMPROVING AGRI.                                        3) INSTIT.             COMPETITIVENESS     2) RURAL                          CHANGE                                      WELFARE                                              
           (1) MULTI-         (1) CORE FARMER'S      (1)EDUCATION
           FUNCTIONALITY          PROGRAM
                                                            2) MEDICAL
           (2) CHANGING       (2) MODERNIZING            SERVICES
            ROLE OF COOP.        MARKETING             
                                       SYSTEM            (3) FARMER'S
           (3) DIRECT                                        SPECIAL
             PAYMENT          (3) INFORMATION          PENSION
                                  TECHNOLOGY           PROGRAM                             

               

            CHANGING ROLE OF AGRI.-COOP'S     

                                 

                                               1) ADDED ROLE OF
                                 AGRI.-COOPS

   3)      3) FARMER'S     (1) HIGH Q & S         2) MODERNI-
              WELFARE         PRODUCTION           ZING COOP.'S
                                                         MARKETING          (1)        (1) RURAL        (2) FARMING            
             WELFARE           ZONE               (1)INCREASING
             PROGRAM          PROJECT              COOP.'S
                                                        MARKET 
           (2)LINKING       (3) RELATED             SHARE                                DIRECT            SERVICES
             PAYMENT                               (2)COOP-BRAND
                                                         FOR GAP  

                           

   

      financial institution
	no. of fin. inst. (end 1997) (a)	bankrupted or merged (b)	  % (b)/(a)	no. of fin. inst.(aug. 2000)	

banks	33	10	30.3	23	
non-banks
	403	137	34.0	300 1)	
 
cd.u. others	1,666	340	20.4	1,335	
total
	2,102	487	23.2	1,658	

      1) 34 FI merged or newly established included

                BUSINESS VOLUME OF NACF, 2002.
 Business	 US $ (billion)	
Total Volume	305.85	
 (marketing) :
     oFood grains
oFruits
     oVegetables                         oLivest. products
	( 9.22 )
3.48
1.61               
 2.51 
1.57
	
(Supply):
     oFertilizer  
            oPlant protection
       oFeedstuffs
       oMachinery
   oOthers
	(1.73)
0.61
0.22
0.13
0.10
0.67
	
(Banking):
     oDeposits 
 oLoan    
	(108.19)
64.66
43.59
	
(Mutual credit) 
     oDeposits
  oLoans   
	(122.24)
75.19
47.05
	
(Insurance)
            oPremium income
	(5.40)
5.40
	
(International banking)
           oInternl. banking	(10.47)
10.45	

    

         Member Farmer's Borrowings in MCP                                     (unit : % )

        

    

year	member	qs.member	nomember	total	
1995	61.2	26.4	12.4	100.0	
1996	58.7	26.5	14.8	100.0	
1997	55.3	27.0	17.8	100.0	
1998	57.5	25.5	17.0	100.0	
1999	58.0	26.7	15.2	100.0	
2000.5	58.8	26.4	14.9	100.0	
   
       source : nacf & bok

                                                 

                  MEMBER FARMER'S DEPOSIT IN MCP.

                

( uint: % )      
year	member	qs.member	nonmember	total	
1995	28.4	50.3	21.3	100.0	
1996	30.2	51.0	18.8	100.0	
1997	27.5	52.4	20.0	100.0	
1998	24.4	59.9	15.7	100.0	
1999	24.7	58.4	16.9	100.0	
2000.5	24.3	59.8	15.8	100.0	
source : nacf 

       

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