South Korea: FTA damage compensation direct payment is delayed; cattle farmers are discontent

Published 2024년 12월 18일

Tridge summary

Korean beef farmers are facing uncertainty and discontent due to the delayed payment of the FTA damage compensation direct payment, which was intended to offset the financial impact of increased imports under free trade agreements. The Ministry of Agriculture, Food and Rural Affairs had established this system to compensate for the price drop in products like Korean beef and beef cattle due to increased imports. However, the payment, which was due four months after the application deadline, has not been made yet, further exacerbating the financial strain of the farmers. The Ministry is currently discussing the related budget with other departments, attributing the delay to the large number of applications and the need for a substantial budget for the payments this year.

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Original content

As the free trade agreement (FTA) damage compensation direct payment is not paid, Korean beef farmers who need money at the end of the year are becoming unsettled. Furthermore, as news spreads that the government is having difficulty securing the related budget, there are even concerns that the payment will be postponed indefinitely. The Ministry of Agriculture, Food and Rural Affairs selected four items as eligible for the FTA damage compensation direct payment in June, including Korean beef, beef cattle, Korean beef calves, and mung beans, and accepted applications through towns, counties, and districts nationwide until August 9. The FTA damage compensation direct payment system is a system that compensates farmers and others for a portion of the price decrease for items that have suffered price drops due to increased imports resulting from the conclusion of the FTA. According to the analysis results of the FTA Implementation Support Center of the Korea Rural Economic ...

Source: Nongmin