South Korean agricultural funds face 9.5 trillion won reallocation controversy

Rep. Lim Mi-ae has raised concerns regarding the 2027 budget proposal for the Ministry of Agriculture, Food and Rural Affairs, noting that over 9.5 trillion won from the Special Account for Rural Structure Improvement is slated for transfer to various other accounts and funds.

According to the analysis, these transfers include the Livestock Development Fund (1.88 trillion won), the Fisheries Development Fund (738 billion won), the Agricultural Development Fund (4.78 trillion won), and the Future Response Fund (1.24 trillion won), among others. Critics argue that many of these transfers lack a clear legal basis under the current Special Account for Rural Structure Improvement Act, which specifies a more limited list of eligible recipients.

The surge in transfers is attributed to an estimated 6 trillion won in excess tax revenue from the Agricultural Special Tax. While the budget authorities cite the National Finance Act as justification for such transfers, the National Assembly Budget Office has previously cautioned against using general provisions to move funds into accounts not designated for such purposes under the specific agricultural law.

Specific concerns were raised regarding the Future Response Fund, which is not limited to the agricultural sector, and the potential for these funds to be diverted toward rural basic income projects rather than structural agricultural reforms such as expanding public reserve farmland or supporting young farmers.