The government is strengthening financial support to expand exports in the agricultural food sector and related upstream and downstream industries such as agricultural machinery and intelligent farms (smart farms). In particular, a new budget has been allocated to support the establishment of a cold chain system to enhance the quality competitiveness of fresh agricultural products and to support overseas project orders for smart farm consortiums.
The Ministry of Agriculture, Food and Rural Affairs announced on the 5th that the government budget for expanding exports in the agricultural food and related upstream and downstream industries in 2024 has been set at 631.3 billion KRW, an increase of 18.8 billion KRW compared to this year.
According to the World Trade Organization (WTO) agreement, export logistics cost support will be abolished from 2024, but the budget reflects projects that can enhance export competitiveness, such as fostering export-specialized organizations, to replace this. First, the budget for fostering export-specialized organizations that manage everything from quality control of fresh agricultural products to logistics and promotion at a global standard level will be significantly increased from 6.5 billion KRW this year to 24.5 billion KRW next year. The budget for the Agricultural Food Global Growth Package (export voucher), which allows agricultural food export companies to freely select and receive support for promotion, product development, and market development needed, has also been expanded from 4.4 billion KRW to 32.8 billion KRW. Additionally, a new budget of 3.6 billion KRW has been allocated to establish a logistics system specialized for fresh agricultural products, including support for Controlled Atmosphere (CA) containers, cold storage, and refrigerated vehicles to apply a seamless cold chain system from domestic production areas to overseas consumption areas.
The budget for expanding exports of upstream and downstream industries such as smart farms, agricultural machinery, and pet products has also increased to 13.7 billion KRW, about twice the 6.8 billion KRW of the previous year. To more effectively support smart farm and agricultural machinery exports, the budget for overseas market development and local market testing, including the establishment of one new pilot greenhouse, has been expanded from 4.5 billion KRW to 6.2 billion KRW. Furthermore, a new budget of 400 million KRW has been allocated to support overseas project orders for smart farm consortiums, and a new budget of 1.9 billion KRW has been allocated for overseas export industrialization of pet-related industries, including overseas pet market research, pet-related export fairs, and research and development of export products.
Kwon Jae-han, Director of Agricultural Innovation Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "Despite the abolition of export logistics cost support, the export support budget for agricultural food and related upstream and downstream industries in 2024 has been increased by 3.1% compared to the previous year. Exports are the foundation of our economy and a source of job creation, and they greatly contribute to national economic growth by expanding the agricultural food consumer market and increasing farm income. Therefore, we will actively strive to expand exports in the agricultural food and related upstream and downstream industries."
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