for Mid- and Long-term Development
(Year 3 of 5)
changes in economic activities was studied by utilizing regional survey data and data on the farm economy in the Census of Agriculture, Forestry and Fisheries, which represents the national statistical data. The survey was conducted for a total of 20 villages, including 15 villages selected in the previous study, one island and fishing village added this year and four villages in the “Research on the History of 20 Years” conducted by the Korea Rural Economic Institute (KREI). The content of the survey includes the current status of economic activities, agricultural and fisheries activities and village economic activities.
Research Results and Implications
The percentage of farm households without a farming successor among farm households in Korea is over 90%. While the average income of farm households in the country slightly increased for the past decade, agricultural income decreased by 1.5% on average in the same period; off-farm income rose by 4.0% on an annual average.
According to the results of the study by KREI on the recent trend of case villages in which changes for 20 years from 1981 to 2001 were observed, the population of the villages decreased to one-third or one-fourth of the population in 1985. The average age of agricultural managers increased from the age of 53.6 in 1985 to the age of 73.1 in 2017. No economic and agricultural groups organized in the villages at the time of the survey in 1986 existed in 2017. It can be concluded that overall rural villages in Korea are losing vitality due to macroscopic and external power of aging population and globalization.
People in their 70s continue farming activities in rural villages, without any clear plan on retirement. Under these circumstances, it is imperative to gradually shift rural resources, which are concentrated on elderly people in their 70s, to the younger generation. Although common economic activities have been promoted as administrative assistance, the level of participation in these activities is low; 98% of agricultural activities in the case village are individually performed. Reasons for this low level of common economic activities can be found in weakened community activities in rural villages, which were traditionally performed, and uncertain economic profits through
these activities. It can be said that it is required to establish a community in a different style from a village to operate common economic activities.
Meanwhile, some villages started to seek new economic activities by utilizing their own assets such as traditional culture and village landscape. Especially, new economic activities tend to be triggered by people returning to farming and rural areas. The importance of practical implementation of policy on returning to farming and rural areas can be highlighted again for the vitalization of rural villages. Economic activities in rural villages are currently expanding beyond the boundary of a village. Such expansion of spatial boundary in economic activities has a close relation with the diversity of economic players and the spatial boundary of a community, which is formed by these people. It implies that a policy for promoting the formation of a community based on eup (town), myeon (township), city or province, not a village, is required.
When it comes to policy direction, it is necessary to develop practical policies to encourage economic activities for local residents and accomplish a public goal. As a major policy task, this study suggested a measure to institutionalize the “village farming”
for rice farming, which is typically implemented in rural villages. Second, organizing a community based on a wide region was proposed to overcome the limitations in rural villages. Third, this study suggested that a rural activist group should stipulate concrete acts for preserving and managing the natural environment in the region and a policy to provide corresponding subsidies should be introduced for administration. Lastly, it was suggested that it is required to improve existing policies on promoting management transfer by elderly people, implement policies on boosting the 6th industrialization continuously and inspect and enhance existing village projects.
Researchers: Gouk Seungyong, Kim Meebok, Hwang Euisik, Choi Jiseon, Han Bohyun E-mail address: gouksy@krei.re.kr
Purpose of Research
This research is conducted to propose appropriate investment directions that help to build a solid foundation for a sustainable growth of agriculture in Korea. Looking at the long-term changes in the structure of Korean agriculture, the research will suggest desirable investment directions in consideration of a variety of factors such as the current status of public and private investments, agricultural production in Korea, and related industries. This research aims further to suggest plans to activate investment in the agricultural sector by investigating how to improve the current investment structure and related systems.
In the first year, various studies were conducted on
1) growth of agriculture in Korea and changes in total factor productivity (TFP) 2) changes in the structure by farm type and capital injection
3) structural changes in other countries and their implications
4) future tasks of the Korean agricultural sector to achieve growth and desirable changes in farming conditions.
In the second year of research, directions of investment will be set based on the results of the studies conducted in the first year by Hwang Euisik et al. on necessity of