South Korea raises income threshold for agricultural direct payments

The South Korean Ministry of Agriculture, Food and Rural Affairs will apply an increased non-agricultural income threshold for basic public direct payments to farmers this year. Following a prior consultation with the Board of Audit and Inspection, the government decided to raise the income limit from 37 million won to 47 million won for current applicants, despite the revised law not officially taking effect until late 2025.

The decision addresses administrative uncertainty regarding the timing of the law's implementation versus the annual payment schedule. While the amended Agricultural and Rural Public Direct Payment Act was set to apply to applications starting in 2026, the Board of Audit and Inspection ruled that the relaxed criteria could be applied to those who applied between March and May of this year. This allows the Ministry to finalize recipients in October and distribute payments by November or December.

The adjustment aims to reflect rising inflation and income levels, ensuring more farmers qualify for stability payments. To receive the funds, farmers must still meet other legal requirements, such as being registered as an agricultural business entity.