ÌÇÐÄÆƽâ°æ

In 2023, the total area of farmland in South Korea amounted to around **** million hectares, a slight decrease from **** million hectares in the previous year. The area of farmland in South Korea has been on a declining trend in the last decade. 

Overview of the agriculture industry

While the gross domestic product from agriculture, forestry and fishing has remained stable in Korea, the agricultural sector overall has faced various issues in the last couple of years. Previously known as the most important crop of the country, the per capita consumption of rice has shown a rapid decrease, partly due to changing eating habits. The livestock and dairy sector, on the other hand, has increased greatly in the last five years. Another issue can be noticed in the share of farming household population among the total population, which also decreased in the last four years by around *** percent. As people over 65 years make up over ** percent of agricultural households, this trend of decreasing households will probably continue with no direct intervention.

Agriculture and inflation

South Korea’s inflation has remained relatively moderate in the past few decades. Still, the price of essential items, particularly food and clothing, has significantly increased and the price level index currently about *** times above the OECD average. For example, agricultural products such as potatoes, pork, and apples are two to three times more expensive than in other developed countries. This high pricing is often attributed to several factors, including restricted imports of fresh fruits and vegetables, limited availability of agricultural land, and generally low productivity levels within the agricultural sector. Especially low-income households have been disproportionately affected by the rising cost of groceries and have spent over ** percent of their income on food expenses.