South Korea: Selection of FTA damage compensation direct payment support target

Published 2024년 7월 1일

Tridge summary

The Ministry of Agriculture, Food and Rural Affairs in South Korea has announced four agricultural products: Korean beef, beef cattle, Korean beef calves, and mung beans, as being eligible for direct payment support under the 2024 Free Trade Agreement (FTA). This support is designed to offset the price decline caused by the rapid increase in imports of agricultural and livestock products due to the FTA. Farmers and agricultural corporations that cultivated or raised these products before the effective date of the FTA with the importing country can apply for this support. The application deadline is August 9th, and the final payment and amount of support will be decided by local government officials.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Ministry of Agriculture, Food and Rural Affairs announced on June 27 that it had finally selected four items, including Korean beef, beef cattle, Korean beef calves, and mung beans, to be eligible for direct payment support under the 2024 Free Trade Agreement (FTA). The FTA Damage Compensation Direct Payment System is a system that compensates a certain portion of the price decline to farmers and agricultural corporations producing items whose prices have fallen due to the rapid increase in imports of agricultural and livestock products due to the implementation of the FTA. Direct payment for damages is paid within the range of 95% of the domestic price decline of the year compared to the base price, taking into account the contribution to imports. Import contribution quantifies the impact of increased imports due to FTA implementation on price declines. The import contribution of the four items selected this time is 29.3% for Korean beef and beef cattle, 37.9% for Korean beef ...

Source: Nongmin