South Korea extends agricultural and fishery fuel subsidies until year-end

The South Korean government has decided to extend tax-free fuel subsidies for the agricultural and fishery sectors until the end of the year. This three-month extension aims to alleviate the financial burden on farmers and fishers caused by high international oil prices, driven by instability in the Middle East.

During a cabinet meeting, the government approved the expenditure of 79.1 billion won from the purpose-specific reserve fund to support this extension. Of this amount, 66 billion won is allocated to the agricultural sector for diesel used in three types of farm machinery and heating oil for horticultural facilities, while 13.1 billion won is designated for the fishery sector's tax-free diesel.

Since March, the government has been providing subsidies that cover up to 70% of the amount exceeding a set base price. Due to rising costs, the subsidy limit per liter was previously increased in May. With the new allocation, the total scale of fuel subsidies for the agricultural and fishery sectors is expected to reach 197.9 billion won for the year.