70 Years' Achievements and New Challenges of Korean Agriculture and Rural Communities

Abstract

○ The most remarkable achievement of the Korean agricultural sector since independence is the accomplishment of rice (staple grain) self-sufficiency and the securing of the ability to supply various foods.

- Despite the inevitable contraction of agriculture in the process of rapid economic development, the growth and sacrifice of agriculture and rural communities, including poverty eradication, labor supply, and price stabilization, can be evaluated to have become a foundation for high industrialization and urbanization.

- Economic growth has changed demand for agricultural products and raised labor opportunity costs. Thus, production was converted to agricultural produce with income elasticity and labor's high value-added productivity. This change in production enabled agriculture to grow continuously.

○ Over the past 70 years, rural areas have also experienced dynamic changes. The Saemaul Movement, which is globally considered as a successful rural development strategy, was developed, and diverse policies were implemented, including an increase in non-farm income, the establishment of production infrastructures, the expansion of commercial crops, and rural development for the stabilization of the rural economy and society.

- In the industrialization process, however, young people with high productivity left for cities, which led to the decrease and aging of rural population.

- Recently, the population who returned to farming and rural areas and people with higher education have been on the rise. Although those employed in the primary industry greatly decreased, those in the secondary and tertiary industries increased. Also, rural dwelling conditions have been gradually improved to the level of cities.

○ This edition introduces the changes in agriculture and rural communities that have played a critical role as the foundation for the growth of the Republic of Korea in the 70th anniversary of liberation.

- Quantitative changes were examined with a focus on major macroeconomic indicators, achievements were summarized, and new challenges of Korean agriculture and rural regions were drawn.

- The analysis of major macroeconomic indicators was based on official statistics, including the Population and Housing Census, the Agricultural Census, KOrean Statistical Information Service (KOSIS), e-National Indicators, The Bank of Korea's Economic Statistics System (ECOS), and Major Statistics on Agriculture, Forestry and Food. For data analysis, available statistics from the time of independence to 2015 were utilized.

○ Although limited to quantitative data, this edition was a good opportunity to examine the changes in farm households and rural residents' lives. It is expected that Korean agriculture and rural communities, which had been the foundation for growth in the nation's modernization process will achieve development in a new sense for the next 70 years.