(Purpose) To provide producers with compensation on the price drop of cultivation items below a certain limit due to a sharp increase in imports since the enforcement of the FTA
(Target Items) All agricultural goods with reduced or abolished customs tariffs or with increased tariff rate quotas due to FTA enforcement
(Criteria) Directly pay for damage if meeting all of the three requirements as below
① (Price) The average price of the target item for the year falls below 90% of the average price for three years excluding the highest and lowest values for the previous five years
② (Total of Import) The total imports of the subject items for the year are higher than the average for 3 years excluding the highest and lowest values for the previous five years
③ (Import Volume) The amount of imports from the FTA country for the year is higher than the standard import volume* *Average import volume for three years excluding the highest and lowest values among the annual imports from the FTA country for the previous five years × coefficient of damage coming from import
(Compensation Rate) Compensate 95% of the difference between the base price and the average price of the year * Compensation Limit: KRW 35 million for farmers, or KRW 50 million for farming corporations
(Eligibility) Directly pay for damage if meeting all the requirements as below
① A person in the farming and agricultural industries, who is registered as an agricultural business pursuant to Article 4 (1) of 「Act on Fostering and Supporting Agricultural and Fisheries Business Entities」
② A person who has produced items subject to Direct Payment for Damage before the effective date of the FTA agreement;
③ A person who has directly produce and sold the item at his/her own expense and responsibility in the relevant year and thus incurred damage from price drop
Implement Direct Payment for Damage until 2025 according to Article 6 of the Special Act on Assistance to Farmers, Fishers, etc. Following the Conclusion of Free Trade Agreements
Create tangible outcome from policy implementation by provide information to farmers of target items in advance and promote the policy
