WORLD TRADE  
ORGANIZATION   
G/AG/N/KOR/44 
16 September 2011 
 (11-4457) 
Committee on Agriculture Original:   English 
   
NOTIFICATION 
 
  The attached notification concerning new dom estic support measures exempt from reduction 
(Table DS:2 ) was received from the delegation of the Republic of Korea  on 2 September 2011. 
 
 
    
 
     
 
    
 
    
 
  G/AG/N/KOR/44 
Page 2   
  Table DS:2 
DOMESTIC SUPPORT:  Republic of Korea  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Public Rice Stockholding Programme  
(2) Domestic legislation reference:  Grain Management Act 
(3) Detailed description of measure with reference to criteria:  Annex 2, paragraph 3. 
In 2005, Korea abolished the decades-old Rice Purchase Programme and introduced the 
Public Rice Stockholding Programme for food security.  The purpose of the Programme is to 
stabilize the supply of rice, the staple food for Koreans, as stipulated by Article 10 of the 
Grain Management Act.  The volume of such stocks corresponds to a predetermined target, 
i.e. 17 per cent of the annual consumption (864 thousand tonnes in 2005) considering the 
FAO guideline.  Rice purchases and sales are made at market price pursuant to Article 10 of the Grain Management Act. 
(4) Cost of measure:  169 billion won (2005)  
(5) Date of entry into effect:  1 January 2005 
(6) Period of application:  No limit 
(7) Products to principally benefit:  Rice 
 
  G/AG/N/KOR/44 
 Page 3 
  
  Table DS:2 
DOMESTIC SUPPORT:  Republic of Korea  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Fixed Payment Scheme for Paddy Fields  
(2) Domestic legislation reference:  Act on Income Support for Farmers Producing Rice and 
Other Crops 
(3) Detailed description of measure with reference to criteria:  Annex 2, paragraph 6. 
The scheme is consistent with the criteria in A nnex 2, paragraph 6.  Eligible recipients are 
those (i) who engage in farming under their ow n expense and responsibility;  (ii) on a paddy 
field enrolled for the 1998-2000 crop years;  (iii) as long as maintaining the original form and the function of the farmland.  Production is not  required to receive the payments.  The amount 
of payments is not related to the type or vol ume of production.  The payments are based on a 
fixed price (700,000 won/ha). 
(4) Cost of measure:  607 billion won (2005)  
(5) Date of entry into effect: 1 January 2005 
(6) Period of application: No limit 
(7) Products to principally benefit:  Rice, dropwort, lotus root, cyperus exaltatus  
 G/AG/N/KOR/44 
Page 4  
 
  Table DS:2 
DOMESTIC SUPPORT:  Republic of Korea  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Direct Payment Scheme for Disadvantaged Regions  
(2) Domestic legislation reference:  Special Act for the Improvement of the Quality of Lives of 
Farmers, Forestry Workers and Fishermen and the Facilitation of Rural Development; 
Enforcement Provisions on Direct Pa yment for Agricultural Producers.  
(3) Detailed description of measure with reference to criteria:  Annex 2, paragraph 13.  
Direct Payment Scheme for Disadvantaged Regi ons is introduced to help farmers continue 
farming in disadvantaged regions  by covering a part of the additional costs or foregone 
incomes due to natural handicaps, th ereby to sustain rural communities.  
In land areas, a disadvantaged region is defined as ri (ward, subdivision of a town), more than 
50 per cent of farmland of which has a gradient of 14 per cent or higher, and arable land rate 
of 22 per cent or lower.  In islands, all ri of towns or townships are defined as disadvantaged, 
regardless of gradient or arable land rate.  To be eligible for the payments, recipients must 
reside in the disadvantaged region and cultivat e farmlands or manage grasslands that were 
actually used for agricultural purposes during the base period of 2003-2005.  The farmlands 
or grasslands should be at least 0.1 ha to recei ve payments.  The payments are not related to 
the type or volume of production, or price af ter the base period.  The payment rates are 500 
thousands won/ha for farmlands (field or orch ard), and 250 thousands won/ha for grasslands. 
This is roughly equivalent to 50 per cent of the gap of income between disadvantaged regions and other regions. 
(4) Cost of measure:  47 billion won (2006) 
(5) Date of entry into effect:  1 January 2006 
(6) Period of application:  No limit  
(7) Products to principally benefit:  None  
  G/AG/N/KOR/44 
 Page 5 
 
 
  Table DS:2 
DOMESTIC SUPPORT:  Republic of Korea  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Direct Payment Scheme for Landscape Conservation 
(2) Domestic legislation references:  Special Act for the Improvement of the Quality of Lives of 
Farmers, Forestry Workers and Fishermen and the Facilitation of Rural Development; 
Enforcement Provisions on Direct Pa yment for Agricultural Producers. 
(3) Detailed description of measure with reference to criteria:  Annex 2, paragraph 12.  
Direct Payment Scheme for Landscape Conservati on is designed to secure public interests in 
rural areas by supporting rural landscape management practices through cultivation of ornamental crops and community scenery con servation activities.  Ornamental crops are 
approved by the local government for their effective use in creating superb natural 
landscapes.  Community scenery conservation ac tivities include management of community 
environment and preservation of historic sites. 
Under this scheme, rural communities take initiatives in formulating and implementing a 
landscape management plan.  To be eligible for the payments, communities must engage in 
cultivation of ornamental crops and community scenery conservation activities under the landscape management agreement with local go vernment.  The payment covers the extra 
costs for farmers to implement the conservation Programme. 
(4) Cost of measure:  6.8 billion won (2008) 
(5) Date of entry into effect:  1 January 2008  
(6) Period of application:  No limit  
(7) Products to principally benefit (if any individual product(s)):   None 
 
 
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