FFTC Agricultural Policy Platform (FFTC-AP)

ABSTRACT

This report presents Korea’s Top 10 Agricultural Policy Issues for 2025, shaped by accelerating climate change, global economic uncertainty, and rural demographic decline. It highlights urgent needs for comprehensive farmer safety nets, infrastructure upgrades for food security, smart agriculture adoption, rural revitalization, and digital supply chain management. The report also addresses international trade risks amid rising protectionism and calls for expanded agricultural ODA to support global food security and Korea’s strategic interests.

Keywords: Korean Agricultural Policy, Top 10 Agricultural Policy Issues

INTRODUCTION

Major Changes in Internal and External Conditions for Agriculture and Rural Areas in 2025

In 2025, Korea’s agricultural and rural sectors are facing a complex combination of external shocks and internal structural challenges that are reshaping the production environment and policy landscape.

Climate change is emerging as one of the most immediate and disruptive threats. In 2024, South Korea experienced a series of abnormal weather events, including unusually warm winters, prolonged heat waves, pest outbreaks, and heavy snowfall. These climatic anomalies caused significant disruptions to agricultural production, distribution, and pricing, amplifying operational risks for farming households and undermining consumer welfare. Looking ahead, such climate-related risks are expected to increase in both frequency and severity. This growing unpredictability highlights the urgent need for comprehensive adaptation strategies across agriculture and rural communities, alongside broader mitigation efforts to slow down climate change itself.

At the same time, global economic conditions remain uncertain. Although the International Monetary Fund (IMF) projects a stable global growth rate of approximately 3.2% in 2025, the broader outlook is clouded by rising geopolitical risks and shifting trade dynamics. The escalation of nationalism and protectionism, particularly following the return of the Trump administration in the United States, along with the prolonged Russia-Ukraine conflict and continuing tensions in the Middle East, are putting downward pressure on global economic stability. For Korea’s agricultural sector, these external risks are translating into heightened volatility in international commodity markets and growing instability in global supply chains. In turn, this is driving up production costs for key agricultural inputs such as energy, fertilizers, and livestock feeds.

Domestically, South Korea is grappling with its own economic vulnerabilities. The country’s real GDP growth rate has shown a steady downward trend since 2010, and this slowdown has been further exacerbated by a prolonged domestic recession, high inflation, and rising exchange rates since the second half of 2024. The political uncertainty following the December 2024 impeachment crisis has also weakened international market confidence. If these conditions persist through 2025, reduced domestic demand could further depress agricultural sales, while the high exchange rate could continue to inflate the costs of imported inputs, posing a serious threat to farm household incomes.

In parallel with these external and macroeconomic pressures, Korea’s agriculture and rural areas are facing long-standing structural issues that demand independent policy attention. Chief among these are rural depopulation and the rapid aging of the farming population. These demographic shifts are not directly linked to the economic and climate-related shocks but represent an ongoing internal challenge that threatens the long-term viability of rural communities. In response, the government is implementing and expanding a range of rural revitalization policies and farmland utilization programs. These initiatives aim to promote generational turnover in farm management, relax farmland use regulations to encourage more flexible and efficient land utilization, and stimulate local economic activity by diversifying rural industries and strengthening infrastructure.

Amid these challenges, technological innovation is opening new avenues for agricultural transformation. The rapid advancement and adoption of artificial intelligence (AI), information and communication technologies (ICT), and smart farming solutions are reshaping production systems and management practices. AI is being applied to analyze crop growth data, predict pest and disease outbreaks, and optimize cultivation strategies, leading to improvements in productivity and operational efficiency. These innovations are also seen as potential tools for attracting younger generations back to farming and rural life, addressing some of the demographic challenges the sector faces.

Ultimately, Korea’s agricultural sector in 2025 stands at a critical juncture. External shocks like climate change and global economic instability, coupled with internal demographic and structural issues, are forcing a comprehensive rethinking of agricultural policy and rural development strategies. By combining adaptive responses, structural reforms, and technological innovation, Korea aims to build a more resilient and sustainable agricultural sector for the future.

PROCESS OF IDENTIFYING THE TOP 10 AGRICULTURAL POLICY ISSUES FOR 2025

The selection of the Top 10 Agricultural Policy Issues for 2025 involved a multi-phase process that systematically combined big data analysis, expert consultation, and public perception surveys to ensure both objectivity and relevance.

The first phase focused on continuously reviewing emerging agricultural and rural issues using big data from research outputs and media sources. Weekly briefs summarizing agricultural and rural trends were prepared based on keyword analyses of news articles and major research reports. In addition, long-term trends were identified by reviewing major research publications from the agricultural sector over the past decade (2015–2024). Text mining techniques, including Term Frequency-Inverse Document Frequency (TF-IDF), were applied every month to extract and evaluate key keywords from news articles, leading to the compilation of an initial pool of 64 candidate issues.

The second phase involved consultations with internal experts and policy officials to refine the list of candidate issues. Between August 20 and September 6, 2024, internal experts from various agricultural policy domains reviewed the relevance and priority of each issue. Their input was incorporated into the candidate list. Subsequently, on September 10 and 11, 2024, one-on-one in-person interviews were conducted with 29 officials from the Ministry of Agriculture, Food, and Rural Affairs to gather additional feedback. These consultations considered government policy directions, national priorities, external economic and environmental conditions, and anticipated future policy agendas, resulting in the narrowing down of the candidate list to 24 key issues.

Table 1. Major agricultural issues for 2025 according to stakeholders

Issue	Experts' survey	Farmers' survey	Urban residents' survey	Weighted average
	Score / Rank	Score / Rank	Score / Rank	Score / Rank
Food security in the climate crisis era	8.16 / 1	7.56 / 1	7.94 / 1	7.85 / 1
Expansion of income & business stability for farmers	8.05 / 2	7.50 / 2	7.45 / 10	7.65 / 3
Response to inflation in the climate crisis era	7.96 / 3	7.25 / 3	7.89 / 3	7.66 / 2
Generational change in the agricultural workforce (Youth participation)	7.90 / 4	7.02 / 8	7.47 / 9	7.42 / 5
Increasing rural population & economic vitality	7.59 / 5	7.17 / 4	7.73 / 5	7.46 / 4
Activating online wholesale markets & local distribution	7.36 / 6	7.06 / 6	7.74 / 4	7.35 / 6
Smart agriculture and scientific farming practices	7.29 / 7	6.92 / 10	7.93 / 2	7.33 / 7
Support for foreign agricultural workers’ adaptation	7.26 / 8	6.70 / 13	6.75 / 14	6.88 / 13
Efforts to reduce carbon emissions	7.03 / 9	6.86 / 12	7.60 / 6	7.13 / 10
Developing K-Food+ as a national export strategic industry	7.01 / 10	6.97 / 9	7.58 / 7	7.17 / 9
Farmland preservation & utilization discussions	6.96 / 11	7.07 / 5	7.56 / 8	7.18 / 8
Boosting consumption of agricultural & livestock products	6.86 / 12	7.03 / 7	7.41 / 11	7.09 / 11
Improving farmers' access to agricultural funds	6.73 / 13	6.88 / 11	7.33 / 12	6.97 / 12
Advancement of agricultural Official Development Assistance (ODA)	5.88 / 14	6.54 / 14	7.17 / 13	6.53 / 14
Ending dog meat consumption & upgrading pet-related regulations	4.54 / 15	4.73 / 15	6.62 / 15	5.24 / 15

Note 1: Importance scored on a 10-point scale.

Note 2: Total scores calculated with weighted averages—Experts (30%), Urban residents (30%), Farmers (40%)

Source: Compiled by researchers.

In the third phase, perception surveys targeting farmers[2], urban residents, and academic experts were conducted to gauge public and professional priorities. From October 1 to 31, 2024, a large-scale survey involving 1,328 farmers and 1,500 urban residents was carried out. This survey was integrated with the annual "2024 National Awareness Survey on Agriculture and Rural Areas" conducted by the Korea Rural Economic Institute (KREI). Farmer participants were selected from KREI’s local correspondent network, while urban respondents were recruited via a professional survey agency. The farmers’ survey utilized a mixed method of mail and online responses, whereas the urban survey was conducted entirely online. Respondents were asked to assess the importance of each candidate issue, their perceptions of agricultural policy in 2024, and their outlook for 2025. In parallel, from October 18 to November 12, 2024, a separate online survey targeting 150 academic experts specializing in agriculture-related fields was conducted. This expert survey focused on evaluating the significance of the candidate issues and collecting expert forecasts for agricultural policy directions in 2025.

Finally, the comprehensive assessment of survey results led to the final selection of the Top 10 Agricultural Policy Issues for 2025. There was a broad consensus across all stakeholder groups on the critical impact of climate change on agriculture and the urgent need for proactive policy responses. The final list reflects this, featuring issues such as the introduction of agricultural income stabilization insurance, evaluation of agricultural production infrastructure and price stabilization measures in response to climate crises, the adoption of advanced technologies like artificial intelligence, distribution system innovation for future-oriented agriculture, generational turnover within the agricultural workforce, rural depopulation countermeasures, and key debates on farmland preservation and utilization.

TOP 10 AGRICULTURAL POLICY ISSUES FOR 2025

Issue 1: Establishment of a Comprehensive Korean-Style Safety Net for Farmers' Income and Business Stability

Considering the persistent limitations of existing post-hoc market intervention methods in effectively managing business risks for farmers, there is a growing consensus on the urgent need for a comprehensive and proactive safety net that integrates both preventive and reactive measures. Despite repeated efforts involving market isolation and on-site disposal of surplus products, and while crop disaster insurance has provided partial relief against damages caused by natural disasters, these measures remain fundamentally insufficient in addressing the root causes of income instability stemming from price volatility.

Recognizing these challenges, the government is now moving forward with the establishment of a Korean-style comprehensive safety net for agricultural income and business stability. This initiative marks a strategic shift towards more systematic and forward-looking risk management, focusing not only on post-crisis response but also on preemptive supply-side interventions. Central to this approach is proactive supply management, particularly in the rice sector. The "Rice Industry Structural Reform Plan" announced in December 2024 outlines specific measures such as adjusting rice cultivation areas and promoting the production of high-quality rice varieties. These efforts are complemented by the full-scale rollout of agricultural income stabilization insurance and the planned expansion of public direct payment programs scheduled for implementation in September 2024.

To operate this comprehensive framework, several key tasks have been identified. First, there is a need to establish robust and preventive supply management systems through enhanced public-private cooperation. This includes not only adjusting rice cultivation areas but also forming supply management committees for major horticultural products, allowing for more agile responses to market imbalances. Second, the government plans to expand crop disaster insurance coverage, offering broader protection against natural hazards. Third, the full implementation of agricultural income stabilization insurance will strengthen the sector’s ability to withstand price-related income shocks. Lastly, the government aims to enhance comprehensive income support mechanisms by increasing the rates of both basic and optional direct payments, thereby providing farmers with more predictable and stable income streams. Particularly urgent is the establishment of a solid operational foundation for the early implementation of agricultural income stabilization insurance. A critical prerequisite for this is ensuring the accuracy and reliability of farm-level business information, which serves as the baseline for insurance eligibility and compensation calculations. Pilot programs, such as yield-reporting schemes, are currently underway, and their successful operation will play a decisive role in determining the feasibility and timing of full-scale adoption. Continuous monitoring and institutional support are therefore essential.

Further steps include reforming damage assessment procedures to ensure they are both fair and expedient, expanding training programs to improve farmers’ risk management capabilities, and enhancing the management capacity of the Agricultural Policy Insurance Finance Agency. Plans are underway to restructure the agency into a tentatively named "Agricultural Policy Insurance Corporation", thereby strengthening its role as the central institution responsible for comprehensive agricultural risk management.

In parallel, ongoing efforts to expand and improve public direct payment programs will continue, to bolster farm household incomes. This will involve not only increasing benefit levels but also systematically refining program implementation, such as improving compliance monitoring and advancing performance indicator management for optional direct payments. Identifying and developing new categories of optional direct payments will also be a priority to better align policy tools with the diverse needs of farm households. In the rice sector, stabilizing supply and demand remains a top priority. This involves ensuring the effective implementation of rice cultivation area adjustment programs and maintaining stable rice prices. To this end, the government will pursue a mix of incentives and penalties to encourage farmer participation, develop sophisticated cultivation area monitoring systems, and build a more proactive supply management system that includes buffer stock operations. Where necessary, these efforts will be supplemented by public stockpiling and market isolation measures.

Finally, to ensure the long-term effectiveness of these strategies, broad-based social dialogue and consensus-building are needed, particularly in relation to potential revisions of key legislations such as the "Grain Management Act" and the "Agricultural and Marine Products Distribution and Price Stability Act". Achieving alignment between legislative frameworks and the evolving needs of the agricultural sector will be essential for realizing a truly sustainable and resilient income and business stability system for Korean farmers.

Issue 2: Inspection and Response of Agricultural Production Infrastructure for Food Security in the Climate Crisis Era

As the climate crisis intensifies, public concern over food security is growing rapidly, leading to increased demand for proactive and comprehensive responses within the agricultural sector. The rising frequency of extreme weather events—such as intense heatwaves, heavy rainfall, and other climatic anomalies—is significantly heightening uncertainty around the stable supply of key food items, including grains, vegetables, and fruits. These disruptions are adversely affecting both crop cultivation and livestock environments, resulting in production declines and amplifying vulnerabilities in both domestic and global food supply chains. Given South Korea’s relatively low food self-sufficiency rate of 49.3% as of 2022, the need for forward-looking and climate-resilient strategies has become more urgent than ever.

In response to these mounting challenges, the government is implementing a broad range of policies aimed at strengthening food security and enhancing the sustainability of agriculture in the face of rapidly changing climate conditions. These initiatives include the expansion of strategic crop direct payments and public grain stockpiles to improve self-sufficiency in staple crops. There is also a strong policy push for developing climate-adaptive crop varieties through intensified research and development efforts. Simultaneously, the modernization and digitalization of agricultural and livestock infrastructure are being prioritized to improve production resilience. Furthermore, diversification of overseas supply chains is underway to reduce Korea’s vulnerability to external supply shocks.

Recognizing that climate adaptation must go hand in hand with mitigation, the government is also expanding low-carbon programs within the agriculture and livestock sectors. This includes promoting greenhouse gas reduction technologies, rolling out agrivoltaic (agricultural solar power) projects, and extending agricultural policy insurance to provide business stability for farmers facing climate-induced disasters. These efforts reflect a dual strategy of both minimizing agriculture’s contribution to climate change and strengthening its capacity to cope with the resulting impacts.

A particularly urgent priority is the comprehensive inspection and upgrade of agricultural production infrastructure to establish a food supply system capable of absorbing and responding to climate shocks. This requires enhancing the efficiency of agricultural water management by integrating artificial intelligence and digital technologies, ensuring that productivity losses due to extreme weather can be minimized. Proactive land management is also essential, focusing on the utilization of idle and cultivable lands while maintaining their long-term productivity.

To improve the sector’s capacity to manage supply and demand under climate stress, increased investment in climate-responsive research and development is critical. Key areas for action include expanding the development and dissemination of climate-adaptive crop varieties and agricultural technologies, supporting the cultivation of subtropical crops to stabilize production, promoting smart farm technologies for efficiency gains, and reinforcing monitoring systems to address emerging pests and diseases. Moreover, the use of agricultural satellites for data collection, disaster forecasting, and crop growth monitoring will play a pivotal role in improving climate responsiveness. Identifying new, climate-suitable cultivation zones will help enable region-specific production strategies and proactive supply adjustments. Additionally, modernizing and expanding storage facilities for agricultural stockpiles is necessary to strengthen the resilience of Korea’s food supply chain against future disruptions.

Looking ahead, sustained efforts are required to drive the agriculture and livestock sectors toward long-term low-carbon transformation. Preparations for the Agri-food Climate Change Response Center, scheduled to begin operations in 2026, are currently underway. This center will serve as the central hub for Korea’s agricultural climate change mitigation policies, supporting national targets under the "2050 National Carbon Neutrality Scenario", which aims to reduce agricultural greenhouse gas emissions from 22.2 million tons in 2018 to 15.3 million tons by 2050.

Issue 3: Accelerating the Transition to Future-Oriented Agricultural Growth through AI and Smart Technologies

Korea’s agricultural sector faces mounting challenges that threaten its long-term growth potential. The combined effects of an aging farming population, declining arable land area, and increasing economic and climate-related uncertainties are creating structural limitations on traditional growth strategies. Labor shortages driven by demographic change, land constraints resulting from continuous farmland reduction, and capital constraints exacerbated by high interest rates, exchange rate volatility, and inflationary pressures are all hindering stable agricultural growth. Additionally, the impact of climate change is expected to intensify in the coming years.

For context, Korea’s real GDP for the agriculture, forestry, and fisheries sector has continued a downward trend, declining from USD25.4 billion in 2014 to an estimated USD23.6 billion in 2024. Similarly, the total arable land area has shrunk from 1.71 million hectares in 2013 to 1.51 million hectares in 2023, and the number of farm households has fallen below one million for the first time. The proportion of farmers under the age of 39 continues to decline, making traditional production factor-based growth models increasingly unviable.

In response, the Korean government is implementing several strategic plans aimed at transforming agriculture into a future-oriented growth industry, including the “4^th Basic Plan for Promoting Agricultural, Forestry, and Food Science and Technology,” the “Smart Agricultural Industry Development Plan,” and the “Green Bio Industry Development Strategy.” These plans emphasize the need for digital transformation, the realization of carbon-neutral agriculture, the expansion of innovative agricultural infrastructure, and the development of AI-based predictive and optimization systems.

The “Smart Agricultural Industry Development Plan,” in particular, focuses on leveraging AI and smart technologies to achieve sustainable agricultural production, economic efficiency, and enhanced global competitiveness. Key priorities include improving productivity, enhancing data utilization, advancing AI technologies, applying agricultural satellites for precision management, and supporting carbon neutrality.

To drive these initiatives forward, Korea must concentrate on boosting agricultural productivity through the adoption of AI, drones, agricultural satellites, smart sensors, IoT, and big data technologies. However, the foundation for effective AI and smart agriculture lies in robust data acquisition, integration, and utilization. Improving data quality and modeling capabilities within platforms such as “Smart Farm Korea” is essential to increase their practical use for prediction and management. From 2025 onward, agricultural satellites will also play a critical role in policy planning and farm management support, enabling more data-driven decision-making.

To ensure that small and medium-sized farms can also participate in and benefit from the smart agriculture transition, efforts must focus on improving accessibility and affordability. Rather than emphasizing high-end, capital-intensive technologies, it is important to develop appropriate-level smart farm models that are tailored to the practical problem-solving needs of smaller farms. Initiatives such as smart equipment leasing and subscription-based services can help reduce upfront investment burdens for these farmers.

Furthermore, enhancing AI accessibility and digital literacy among farmers is vital. The government should expand education and outreach programs, establish field-oriented training systems, and scale up professional workforce development programs focused on smart agriculture. These programs should also be designed to attract more young farmers, providing them with the skills needed to thrive in a digitally driven agricultural environment.

At the R&D level, it is essential to scale up investment in developing AI-based crop growth prediction and management models, disaster forecasting and response systems, and AI-driven optimization tools that help maximize yields and minimize farmer losses. This includes integrating big data and AI for adaptive management based on environmental changes. To support the national carbon neutrality strategy, Korea should also invest in AI-based carbon emission monitoring systems for farms and promote the adoption of circular smart agriculture technologies powered by renewable energy sources.

Through these multi-faceted efforts—spanning technology, infrastructure, education, R&D, and policy support—Korea aims to overcome current structural limitations and accelerate the transition toward a future-oriented, resilient, and sustainable agricultural sector.

Issue 4: Promoting the Reform of a Future-Oriented Farmland System

As agricultural production methods diversify and societal demands on rural spaces evolve, there is a growing call for a future-oriented reform of farmland use systems. This movement reflects a broader need to rationalize farmland utilization and ease existing regulations in response to various factors, including increasing public interest in rural living, the challenges posed by climate change, and the pursuit of enhanced agricultural productivity.

A key driver of this trend is the rising number of urban residents seeking weekend farming experiences or extended rural stays, which in turn contributes to population inflows into rural communities. These lifestyle changes have fueled longstanding demands for allowing temporary accommodation facilities on farmland, such as small rural stay shelters. At the same time, the agricultural sector is facing increasing pressure to modernize production systems to adapt to climate risks, leading to calls for regulatory flexibility that would support the establishment of advanced agricultural production facilities, including climate-resilient vertical farms.

In response to these evolving needs, the government has initiated amendments to farmland-related laws and regulations. These include new provisions permitting the installation of temporary rural shelters on farmland without requiring additional land conversion procedures, specifically aimed at promoting rural residency and revitalizing local economies. Furthermore, regulations for vertical farms have been relaxed: the maximum temporary land use period has been extended to 16 years, and such facilities are now allowed within designated smart agriculture zones and specialized rural districts without separate farmland conversion processes. These changes reflect a policy shift toward more flexible and efficient farmland use, aligned with emerging rural development needs.

However, while regulatory easing is necessary to enable agricultural innovation and rural revitalization, it must be pursued with careful balance. Farmland conservation remains a fundamental priority, especially in the context of national food security. The government recognizes that unplanned, indiscriminate relaxation of farmland use regulations could lead to unintended consequences, such as disrupting neighboring farming activities or causing disorganized rural development patterns.

Therefore, any expansion of permissible facilities on farmland must be carefully planned and managed. Regulatory adjustments should be implemented within the framework of comprehensive land-use planning, with new facility developments confined to specially designated zones or districts. This approach ensures that the objectives of promoting agricultural productivity and regional economic development can be met without compromising the core function of farmland as a vital national resource.

As agricultural practices continue to evolve toward broader agri-business domains—incorporating smart agriculture, advanced production technologies, convergence industries, distribution, and marketing—the very concept of farmland use must adapt accordingly. Policy discussions and regulatory frameworks should now expand to redefine farmland use in line with these new agricultural realities, enabling flexibility while safeguarding food security and the sustainability of rural landscapes.

Issue 5: Smooth Generational Transition for Expanding Innovative Growth in Agriculture

Securing the future sustainability and growth of Korean agriculture is becoming increasingly difficult without the active participation of young farmers. Given the declining and aging agricultural population, there is an urgent need to attract and nurture a new generation of farmers who can address labor shortages and bring vitality to the sector through active investment and the adoption of new technologies. These young farmers represent the core driving force for fostering innovative, high-value-added, and future-oriented agricultural practices.

Recognizing this, the government has set an ambitious target to cultivate 30,000 young farmers by 2027, as outlined in the "1^st Basic Plan for Successors and Young Farmers" (2022). To achieve this, a comprehensive stage-based support system has been established, covering each phase from initial preparation to entry, settlement, and growth. Related budgets have been steadily expanded to reinforce this support framework. However, despite these efforts, the actual increase in the number of young farmers has remained limited. This reality highlights a critical gap: while policies to attract new entrants exist, sustaining their long-term settlement and preventing reverse migration away from farming remain key challenges.

To prevent young farmers from leaving agriculture prematurely and to promote stable and sustained engagement, it is essential to design and implement practical support policies that address their real and immediate needs, particularly regarding farming infrastructure. Support for farmland access and production facilities must be strengthened through programs such as pre-lease/post-purchase schemes and the expansion of rental-type smart farms. Additionally, facility maintenance and operational management assistance should be scaled up. To better reflect the financial realities faced by beginning farmers, the government is considering raising the off-farm income limit (currently USD26,066) that determines eligibility for certain programs. Similarly, a review of loan grace periods (currently up to five years) is under discussion to alleviate the financial burden during the early years of farm operation.

Improving the settlement rate and retention of young farmers also requires a holistic approach that includes both economic and social infrastructure support. This entails broadening the scope of existing programs to include prospective farm enterprises within agricultural settlement support schemes. Additionally, there is a growing need to strengthen post-program management, introducing mandatory monitoring, evaluation, and consulting following the required farming period to ensure continued engagement in agriculture. Conducting regular surveys and detailed data collection on young farmers’ actual circumstances, including regional reverse migration trends, is also crucial to inform policy refinement.

Efforts to improve living conditions in rural areas should focus on aligning project sites with young farmers’ needs, such as through the development of rural housing projects and the expansion of childcare, education, and other essential social service infrastructure. A robust post-project facility management system must also be established to maintain these assets effectively over time. Moreover, regional integration programs—including rural adaptation initiatives, community relationship-building activities, and local mentoring schemes—should be expanded to help young farmers become socially and economically embedded in rural communities.

Enhancing young farmers’ management capacity and strengthening mutual support networks is another essential pillar for improving their long-term success rate. This requires expanding personalized pre-consultation and tailored information services, matched to the specific agricultural sectors in which young farmers are engaged. Programs offering pre-farming practical training (apprenticeship-style learning) should be introduced to reduce the risk of farming failures and support effective on-the-job learning. For efficient program delivery and oversight, collaborative governance mechanisms involving the Ministry of Agriculture, Food and Rural Affairs, local governments, and farming organizations should be strengthened.

Additionally, to support young farmers without existing local networks, the government should promote regional youth networks and collaborative farming corporations, creating opportunities for joint management and peer support. For those already experiencing management difficulties, targeted recovery and revitalization programs should be established to help them overcome challenges and remain active in agriculture.

Issue 6: Increasing the Rural "Living Population"[3] and Revitalizing Rural Economies to Enhance Rural Vitality

As rural areas in South Korea increasingly face the threat of depopulation, the need for targeted and proactive policy interventions has become more pressing than ever. The rural depopulation crisis has created a vicious cycle in which declining population numbers lead to reduced demand for essential services, deterioration in quality of life, and further outmigration. This trend is clearly illustrated by the dramatic rise in the proportion of rural towns with populations under 2,000, which increased from just 2.1% in 1990 to nearly 25% by 2020. Without decisive action, economic and social stagnation in these areas will only deepen.

In response to this growing challenge, the government announced a strategic rural depopulation response plan in March 2024, committing to a comprehensive set of policies aimed at reversing this trend. The strategy focuses on four main pillars: attracting a sustainable "living population," revitalizing rural economies, regenerating rural spaces, and improving residential conditions. Key initiatives include the development of integrated rural stay complexes, support for rural business ecosystems, the establishment of agricultural industry innovation belts, and the implementation of rural spatial reorganization projects. Further efforts include youth-focused rural housing projects, specialized health check-ups for female farmers, and mobile medical services, all designed to expand customized social services in rural regions.

Enhancing rural vitality requires a multi-faceted approach, centered on securing human resources, revitalizing the local economy, and strengthening the capacity of municipal governments. To attract and retain a living population, policies must go beyond simple residency programs and instead offer diverse, lifestyle-sensitive solutions. This includes tailored rural stay programs that align with urban residents’ preferences, diversified recruitment channels reflecting modern lifestyle trends, and stable implementation of rural shelter systems to facilitate longer stays. The government also plans to create integrated rural stay complexes and establish "vacant house banks" to make better use of underutilized housing stock.

Improving the quality of life in rural areas will also require enhancing basic services and living infrastructure. Initiatives include the establishment of mobile rural market networks, delivering goods directly from regional hubs to surrounding villages, and expanding ICT-based healthcare and welfare services through inter-agency cooperation. Community-based educational programs will be developed to strengthen local human resource capacity and social cohesion.

Economic revitalization is another critical focus. Supporting customized agricultural industries that reflect each region’s specific conditions and strengths will be facilitated through “rural agreements” and strategic support for SMEs engaged in agricultural supply chains. To foster business innovation in resource-constrained regions, the government is exploring the creation of “(tentative) Rural Customized Regulatory Innovation Zones,” providing a more flexible regulatory environment to encourage investment. Additionally, continued support for non-agricultural entrepreneurship among young people and rural migrants will be provided, including repurposing vacant houses and unused facilities for business use, and relaxing certification and funding criteria for rural convergence industries.

Crucially, the active participation of municipal governments will determine the success of these rural revitalization efforts. By 2025, 139 municipalities are required to develop their own "Basic Plan for Rural Spatial Reorganization and Regeneration", in alignment with the national strategy. They must also formulate action plans for "Activating Rural Economic and Social Services" and build community-based service frameworks suited to local needs. It is vital that these municipal plans actively reflect projects and priorities outlined in the forthcoming "5^th Basic Plan for Improving Rural Quality of Life (2025–2029)," ensuring that national policies translate into concrete, on-the-ground outcomes at the local level.

Through this integrated, multi-stakeholder approach, Korea aims to reverse the rural depopulation trend, revitalize local economies, and build more vibrant, resilient, and attractive rural communities for the future.

Issue 7: Expanding Proactive and Strategic Responses for Food Price Stabilization in the Era of Climate-flation[4]

As the frequency and intensity of extreme weather events continue to rise, concerns over agricultural disasters, supply instability, and food price inflation are rapidly gaining public attention. Heatwaves, heavy snowfall, simultaneous summer downpours and droughts, cold damage, and pest outbreaks have all contributed to a growing sense of vulnerability regarding food security and affordability. Particularly in 2024, the visible acceleration of climate change marked what many now refer to as the beginning of the “climate-flation” era, where climate-induced factors directly drive up food prices.

This shift was acutely felt across the country. In Seoul, for example, the number of heatwave days in 2024 reached 33 days, nearly four times higher than the 1991–2020 historical average of 8.8 days. Correspondingly, food price volatility became more evident across a wide range of agricultural products, including green onions, apples, perilla leaves, lettuce, and cabbage. Consumer surveys conducted by the Korea Rural Economic Institute in 2024 identified climate-related factors as the most significant driver behind the sharp increase in agricultural product prices. As public awareness of climate-flation deepens, it is anticipated that concern over food prices will remain a prominent policy issue throughout 2025.

This rising concern is further amplified by the expectation that climate-related impacts on agricultural production and pricing will continue to intensify. Multiple studies (Joo Won et al., 2024; Cho Byung-soo & Min Cho-hee, 2024; Lee Seung-hee, 2024) forecast worsening climate conditions and increasing price volatility. The unprecedented policy dispute in 2024 between the Bank of Korea and the Ministry of Agriculture, Food and Rural Affairs over the causes of rising grocery prices, widely covered in the media, has also elevated public sensitivity to this issue.

To effectively manage climate-flation and stabilize food prices, the government must prioritize strengthening crop growth management and building a proactive, preemptive supply stabilization system. This requires coordinated operations among key institutional bodies such as the Agricultural Supply Adjustment Committee, Crop Growth Management Council, and the Emergency Supply Stabilization Task Force, which together should serve as a robust control tower for climate-related supply risks.

The government will also focus on early monitoring of production and supply volumes, along with advanced assessments of potential price impacts, enabling timely interventions. While temporary imports of key agricultural products can be considered as part of emergency stabilization measures, such decisions must be made carefully, ensuring minimal disruption to domestic production and farm incomes. Additionally, strict food safety and quarantine controls must accompany any import expansions.

Given the disproportionate burden of inflation on vulnerable groups, support measures for price relief will prioritize economically disadvantaged populations and small businesses. A targeted “selection and concentration” strategy will be adopted to maximize the effectiveness of support. The upcoming “Agri-food Voucher Program,” currently in the planning stages, is being considered as a key mechanism for delivering such assistance. Ongoing monitoring of the price impact of discount programs and agri-food vouchers will also be necessary to ensure these interventions deliver intended benefits.

Effective public communication is equally critical. To prevent misunderstandings and social overreactions to short-term price fluctuations, the government will launch strategic information campaigns that explain the seasonal and structural characteristics of agricultural prices. Excessive media-driven pressure over temporary price spikes could undermine farmer morale, prompt unnecessary import expansions, and ultimately threaten national food security. Therefore, strengthening cooperation with media outlets to ensure balanced and accurate reporting on agricultural price trends will remain a key component of the overall strategy.

In this era of climate-flation, proactive, coordinated, and well-communicated policy responses will be essential to protect both farm household stability and consumer welfare, while safeguarding the long-term resilience of Korea’s food system.

Issue 8: Advancing Agricultural Supply Management through the Use of Digital Technology

In response to the increasing volatility of agricultural product supply and prices, there is a growing consensus on the need to enhance supply management capabilities through digital transformation. A complex mix of climate change, demographic shifts, technological advancements, and evolving domestic and international market conditions is driving recent changes in agricultural distribution. These factors are making traditional supply management approaches inadequate for today’s rapidly changing environment.

Recognizing this, the government’s “Agriculture and Rural Innovation Strategy,” announced in December 2024, highlighted the critical role of digital technologies in improving both short- and long-term supply forecasting and enabling more proactive supply control. However, despite this growing recognition, the actual adoption of digital technologies within Korea’s agricultural distribution sector remains low. According to a 2024 study by Byeong-ok Choi, Kyung-pil Kim, and Eun-mi Jeong (KREI), only 13% of producers and distributors currently use digital devices and databases to automatically generate and manage information on production, local distribution, and wholesale logistics, with the majority still relying on basic tools like Excel spreadsheets. This digital gap presents a significant hurdle to building a responsive and data-driven supply management system.

To address these challenges, a multi-pronged strategy is needed, starting with the establishment of a comprehensive digital agricultural supply management platform. Through public-private governance, this platform would enable the collection, integration, and sharing of digital data and technology services across the entire agricultural supply chain. By connecting data that is currently scattered across different actors and stages, the platform would significantly enhance the practical utility and timeliness of supply management information, allowing for more agile and informed decision-making.

In parallel, there is a pressing need to develop standardized cultivation techniques that reflect varying weather patterns, particularly for key crops such as cabbage, radish, apples, and pears. Creating standardized cultivation manuals by weather type will facilitate more consistent production practices, improve product quality, and support more efficient sorting and storage processes.

Another critical task is the expansion of digital infrastructure and equipment. A recent survey shows that over 70% of supply management personnel lack the necessary facilities and tools to analyze and utilize big data related to production, cultivation methods, sorting, storage, and shipping. To build an integrated and responsive operating system, it is essential to distribute digital devices and establish systems for data collection, management, analysis, forecasting, and field application.

Finally, investment in human capital is equally important. Educational and training programs targeting producers, APC (Agricultural Products Processing Center) staff, storage facility managers, wholesale market operators, and public sector officials must be significantly expanded. These programs should focus on enhancing stakeholders’ skills in digital data collection, management, and analysis, to improve their practical use of digital technologies in daily supply management operations.

By addressing gaps in infrastructure, technology, human resources, and governance, Korea can build a future-ready agricultural supply management system that is more resilient, data-driven, and capable of responding proactively to the growing challenges posed by climate change and market fluctuations.

Issue 9: Reassessing and Strengthening Agri-Food Trade and Export Strategies in the Trump Second Term Era

The launch of the second Trump administration in the United States signals a potential turning point for Korea’s agri-food trade environment. The anticipated return to aggressive, America-first trade policies poses significant risks to Korean agriculture, necessitating a reassessment and strengthening of Korea’s current trade and export strategies.

Under the banner of “Rebalancing Trade,” the Trump administration is expected to intensify protectionist measures focused on safeguarding American workers and farmers, while aggressively targeting trade deficit countries. In 2023, the United States recorded a trade deficit of approximately USD1.06 trillion, making trade imbalance reduction a top policy priority. Given that South Korea ranked as the 7^th largest trade deficit country with the U.S. as of January–November 2024, there is a high likelihood that pressure on Korea’s agri-food exports will increase, potentially through higher tariffs, stricter sanitary and phytosanitary (SPS) standards, or other non-tariff barriers.

Such policy shifts could significantly undermine the competitiveness of Korean agricultural products in the U.S. market, disrupt existing export strategies, and even influence domestic food supply and price stability, especially for commodities that rely on export markets. As a result, there is an urgent need for Korea to develop comprehensive countermeasures to mitigate potential risks and secure market access for Korean agri-food products.

One of the primary concerns is the likelihood of U.S. demands for greater access to Korea’s domestic agricultural market. As part of its trade balance strategy, the United States may push for increased agricultural exports to Korea, intensifying competition between imported U.S. products and domestically produced goods. This could directly threaten Korean farmers’ incomes and market stability. It is therefore essential to prepare item-specific response strategies, particularly for commodities where:

• U.S. export interests are historically strong,
• Korea’s current imports come mostly from third countries (not the U.S.), or
• U.S. exporters, affected by reduced access to the Chinese market, may target Korea as an alternative destination.

A thorough analysis of vulnerable product categories will be critical for tailoring Korea’s policy responses.

Additionally, the U.S. is expected to pursue aggressive global supply chain restructuring measures to exclude China, further complicating Korea’s trade environment. As of November 2024, Korea’s agricultural imports from China totaled approximately USD470 million, accounting for 18.2% of Korea’s total agricultural imports (USD2.6 billion). This high dependence on Chinese imports presents a strategic vulnerability.

To enhance supply chain resilience, Korea must diversify its agricultural import sources, reducing reliance on any single country, especially China. This diversification should include expanding trade relationships with alternative partners and exploring new sourcing regions for critical commodities. Moreover, Korean processed food exports that rely heavily on Chinese raw materials or are manufactured in Chinese factories may face increased scrutiny or export restrictions when entering the U.S. market. As the U.S. strengthens trade barriers against China-involved supply chains, preemptive adjustments in Korea’s sourcing and manufacturing structures will be necessary to avoid trade disruptions.

In this rapidly changing global trade environment, characterized by rising protectionism and geopolitical realignments, Korea’s agricultural sector must enhance its export competitiveness, diversify supply chains, and establish agile and strategic policy responses to safeguard its domestic industry and international market access.

Issue 10: Agricultural ODA in the Era of Food Crises — Seeking New Pathways for Mutual Prosperity and Sustainability

In the face of escalating global food crises driven by international conflicts and climate change, the demand for agricultural Official Development Assistance (ODA) is both increasing and diversifying. Traditional government-to-government financial and technical cooperation models are proving insufficient in addressing the scale and complexity of today’s global challenges. The ongoing wars in Ukraine and the Middle East, coupled with humanitarian emergencies in so-called “forgotten crisis” zones such as Sudan and Haiti, underscore the growing need for more responsive and flexible development assistance mechanisms.

Climate change, in particular, is emerging as a severe threat to agricultural production in many developing countries. Projections suggest that maize productivity in Sub-Saharan Africa could decline by up to 50% by 2050, posing a direct threat to smallholder farmers and family-run farms, which dominate much of the agricultural landscape in these regions. Rising climate risks and growing international instability are eroding farm incomes and food security, intensifying the need for multilateral financial and technological cooperation in agriculture.

In this evolving global context, the Korean government is preparing the “2025 Comprehensive Implementation Plan for International Development Cooperation.” This plan marks a strategic shift toward a more values-based and interest-driven diplomatic approach, emphasizing the promotion of human rights, democracy, and economic security, alongside objectives such as supply chain stabilization and support for Korean businesses and workforce expansion overseas. These directions align with Korea’s broader goal of achieving mutual prosperity and advancing national interests through development cooperation.

To meet these goals, Korea’s agricultural ODA strategy must focus on several key areas. First, Korea should leverage its strengths in climate change adaptation, digital transformation, healthcare, food security, and education, drawing on its development experience and technological expertise. At the same time, ODA projects must be tailored to the specific needs and conditions of target regions, including Asia-Pacific, Africa, and Latin America. For instance, in ASEAN countries, where agricultural infrastructure and technology are relatively advanced, Korea should pursue large-scale flagship projects, joint initiatives with other donor countries, and innovative public-private partnership models. In regions more vulnerable to climate change, Korea’s ODA should expand efforts to develop and distribute climate-resilient crop varieties, improve irrigation and agricultural water management systems, and go beyond basic technology transfers by supporting localized R&D and expert consulting services.

Another key priority is diversifying funding sources and expanding private sector participation to overcome the limitations of public ODA budgets. As demand grows for digital agricultural transformation and eco-friendly infrastructure, especially in middle-income countries, Korea must develop commercial models that attract private capital and expertise. This includes scaling up private investment projects, encouraging PPP (Public-Private Partnership) involvement by Korean firms, and providing stronger government support for feasibility studies and profitability assessments, which are critical for reducing entry risks for private businesses.

In open-market partner countries, Korea should also focus on implementing projects that support the international standardization of agricultural regulations and safety management systems. These efforts will not only strengthen local food systems but also facilitate the overseas expansion and trade of promising Korean agricultural industries, including veterinary medicine, fertilizers, and pesticides. Furthermore, agricultural ODA projects should serve as platforms for Korean companies to transfer expertise in areas such as production, processing, marketing, and digital technologies. Governments from both donor and recipient countries should collaborate on commercialization models and joint economic viability assessments for agricultural infrastructure and equipment investments. This dual approach—addressing global food security challenges while supporting private-sector engagement—will help advance Korea’s vision of mutual prosperity and sustainable development in the era of growing global food crises.

CONCLUSION

In 2025, Korea’s agricultural sector stands at a critical turning point, facing overlapping challenges from climate crises, economic instability, and internal demographic changes. The government must adopt an integrated and forward-looking policy framework that balances short-term risk management with long-term structural reform. Key strategies include strengthening safety nets for farm income, investing in digital and climate-resilient infrastructure, promoting technological innovation such as AI and smart farming, and revitalizing rural communities. Proactive trade diplomacy and global ODA engagement will also be essential. Together, these efforts will help build a more sustainable, competitive, and resilient agricultural future for Korea.

REFERENCES

Choi Byeong-ok, Kim Kyung-pil, Jeong Eun-mi (2024), Current Status and Policy Challenges for Digital Technology Use in Advanced Agricultural Supply Management, Korea Rural Economic Institute (KREI).

Korea International Trade Association (K-stat): https://stat.kita.net/stat/istat/uts/UsWholeList.screen (Accessed: Dec 3, 2024)

KATI Agri-Food Export Info: https://www.kati.net/statistics/monthlyPerformanceByNation.do (Accessed: Dec 17, 2024)

Office of Agroindustry Trend Analysis, 2024. “2025 Top 10 Agricultural Policy Issues”, Agro-Policy Focus, Korea Rural Economic Institute (KREI).