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

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 ...