South Korean agriculture faces drone safety, credit, and subsidy challenges

South Korea's agricultural sector is facing several interconnected challenges involving technology safety, financial liquidity, and subsidy management.

Agricultural drone usage has surged, with ownership increasing from 1,661 units in 2021 to 3,555 in 2025. However, drone-related accidents have also risen sharply; insurance payouts for drone accidents increased 4.7 times between 2022 and 2025, reaching 703 cases last year. Most accidents are attributed to operator error or improper handling.

Simultaneously, farmers are experiencing a credit crunch as farmland values decline. New farmland mortgage loans fell by 26.9% between January and August this year compared to the previous year, and the average collateral valuation for new loans dropped by 23.6%. This has made it difficult for farmers to secure funds for farming operations, education, and living expenses.

Furthermore, issues with the management of youth farmer settlement subsidies have emerged. Over the past eight years, more than 2.9 billion won in subsidies has been flagged for recovery, with approximately 920 million won remaining unpaid. Some cases of non-payment have persisted for over six years, prompting calls for more rigorous post-management systems by the Ministry of Agriculture, Food and Rural Affairs.