The agricultural industry, which has long slumped under a heavy dependency on labor-intensive and low-margin production processes, faces structural reform as the government seeks to cultivate areas such as food processing and tourism. The plan forms a vision for a “sixth industrialization” of the agricultural industry over the next five years.
“To realize the vision, the government set a goal of cultivating about 1,000 non-agro companies by 2017 whose sales exceed more 10 billion won ($9 million),” the Ministry of Agriculture, Food and Rural Affairs said in a press release on Friday.
Currently, about 300 of the 19,700 agro-related corporations each generate more than 10 billion won per year.
The ministry expects that the introduction of non-agro businesses in rural areas will boost the incomes of farmers, while creating job opportunities beyond production, hopefully attracting young talent to rural areas. According to ministry data, households in rural areas depend on agro-production for 92.5 percent of their income.
To cultivate and support the industry in a systematic way, the ministry will introduce a certification system for non-agro businesses in rural areas and offer financial help through a support fund worth 10 billion won this year.
The ministry will also seek to ease regulations to allow rural villages to attract more tourism. For instance, the ministry will revise the law that bans farmhouses from offering paid breakfast to visitors. Under the current food hygiene law, only houses with advanced culinary facilities required for registered restaurants can offer paid meals to visitors.
“If the law is revised, bed and breakfast-type lodging could be introduced in rural villages,’’ the ministry said.
Demand for farm tours has been on the rise, affected by growing urban and rural exchanges and the introduction of a five-day workweek.
The Korea Rural Community Corp. under the ministry has supported rural villages in developing tour programs based on their historical and cultural heritage.
By Seo Jee-yeon (
jyseo@heraldcorp.com)
