MAFRA Unveils "National Agricultural AX Platform" Promotion Plan
Total Investment of 290 Billion Won to Build Farming Solutions and Smart Farm Models
SPC Tender to Open This Month
The government has decided to move forward with the establishment of a "National Agricultural AX Platform," including private sector-led artificial intelligence (AI) farming solutions and leading smart farm models. To allow the private sector to fully leverage its technology, capital, and expertise, it plans to move away from the existing government-led subsidy approach and establish a special purpose company (SPC) through joint public-private equity investment.
The Ministry of Agriculture, Food and Rural Affairs announced this "Plan to Promote the National Agricultural AX Platform" at the Economic Ministers' Meeting on February 4.
An official from the Ministry of Agriculture, Food and Rural Affairs explained, "We are pursuing the establishment of the National Agricultural AX Platform to create an environment in which anyone can manage agriculture easily and professionally by utilizing AI and robots," adding, "The government intends to serve as a catalyst by creating a business model that can secure both the profitability and public nature of the SPC, so that world-class private AI technology can be applied to agriculture."
The National Agricultural AX Platform will largely cover agricultural industry services and smart farms. In agricultural industry services, the goal is to develop and disseminate ultra-precision AI models, such as optimal growth algorithms that can be scaled up to general farms, and to realize customized farming management based on AI and robots tailored to each farm’s level. For smart farms, the aim is to establish next-generation, state-of-the-art smart farm models (greenhouses and livestock barns) of the third generation or higher, in which AI proposes optimized decisions through data analysis, going beyond the current level where managers simply control environmental factors in combination. Furthermore, the government plans to export K-smart farms as a package to foster them as future export growth engines for the agricultural industry, preempting new global markets in regions such as Asia and the Americas.
The main driver of the agricultural AI transition will be the SPC. The SPC will be established through an open call for private consortia, and to strengthen private autonomy, the shareholding structure will be 49% public and 51% private, giving the private sector a larger stake. The public sector will participate only in decision-making related to achieving policy objectives. To participate in decision-making such as special resolutions at the general meeting of shareholders, the public sector plans to secure more than one-third of the total voting shares. Out of a total project budget of 290 billion won over the next five years (with up to 140 billion won in government equity investment), the government plans to concentrate 70 billion won this year.
The official from the Ministry of Agriculture, Food and Rural Affairs said, "An SPC established through equity investment is advantageous in that it can promote specific projects for agricultural AX, while at the same time guaranteeing private autonomy and enabling long-term, stable project operation," adding, "The SPC can ensure independence so that the private sector’s technology, capital, and expertise can be fully exercised in project promotion and operation."
The targets for the private consortium recruitment include smart farm technology companies, agricultural corporations or entities, local governments, and distribution companies. To establish an agricultural corporation, an agricultural corporation or entity must own at least a 10% equity stake (or 800 million won if the total capital of the company exceeds 8 billion won).
Consortia can autonomously determine the scope of their business across cultivation sectors such as AI platforms, greenhouses, and farm work services, as well as livestock sectors such as smart livestock barns. Private consortia participating in the SPC will autonomously present their business plans by sector, and detailed business models will be finalized after evaluation of the submitted plans. Project sites will be selected in consideration of the agricultural AX policy direction and balanced regional development, and land must be secured that can allow the SPC to be established and operated within 2026.
To establish the SPC within this year, the government will announce the recruitment plan for private operators and hold project briefings within this month, and plans to form an evaluation committee composed of experts in each field to select the preferred negotiation partner by April 2026.
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