Gov't to invest 145 bln won to ease KORUS FTA's impact on farmers

SEOUL, Dec. 18 (Yonhap) -- The South Korean government said on Thursday it will spend 145 billion won (US$112 million) to help farmers better cope with the influx of cheaper U.S. products should a bilateral free trade pact be put into effect.

The controversial Korea-U.S. fair trade agreement (KORUS FTA) was signed last
year but still awaits approval from lawmakers in both countries.
Policymakers have said that if the FTA goes into effect, the country's farm
sector could suffer 10.5 trillion won in losses over a span of 15 years, as U.S.
imports will be cheaper than domestically raised produce.
The new government investment will be used to buy glass greenhouses and support
infrastructure for livestock excluded from a list of purchases that can be made
by the state-run farm bank, according to the Ministry for Food, Agriculture,
Forestry and Fisheries.
The farm bank is designed to help farmers who are struggling with high operation
costs or heavy debt. The bank buys farmland and allows the former owner to work
the land by paying a fee.
"The decision to purchase glass greenhouses and barns can help ease worries among
farmers and stabilize the prices for farmland," said Agriculture Minister Chang
Tae-pyong.
Chang explained that while the funds set aside for next year may not be adequate,
the ministry is working to increase the investment to at least 1 trillion won in
2010. He added that the state purchase of farmland will ultimately benefit the
nation, arguing that it will create a more efficient economy of scale.
Most South Korean farms are no larger than a few hectares, making it difficult to
use agricultural machinery.
In addition, the government will support the building of large greenhouse
complexes in 2009 that can produce more crops, Chang said.
"These facilities will be 50-100 hectares in size and will contribute to the
country's farm exports, allowing them to reach $10 billion in 2012, compared with
a target of $4.5 billion this year," he said.
Related to this project, Chang said that two reclamation projects -- the
Saemangeum coastal area and the Yeongsan River estuary -- will be developed into
farm export bases.
Seoul will also take steps to improve amenities and the social welfare
infrastructure of rural communities to make them more attractive to young people,
according to the minister.
A rapidly aging rural population has been cited as a central factor behind the
diminishing competitiveness of the country's agricultural sector.
Opponents of the FTA deal have recently called for more countermeasures to deal
with the repercussions of opening the country to cheap imports.
The timing of the deal's ratification has also become a source of intense
political friction, as many suspect that U.S. President-elect Barack Obama -- who
has called the pact deeply flawed -- will demand a renegotiation.
Late last year, the government said it will spend 21.1 trillion won to help
farmers, with a further 2.1 trillion won being promised this year to help
livestock farmers after Seoul agreed to lift an import ban on U.S. beef in April.
yonngong@yna.co.kr
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