South Korea has supportedits agricultural sector at a relatively high level compared to the policies ofother member countries of the Organization for Economic Cooperation andDevelopment (OECD). Public intervention mainly consists of high pricessupported by government purchases together with high tariffs that protectdomestic producers from foreign competition, that implicitly tax consumers.
á For 2007, the in-quotatariff rate for corn for processing is 2% for 2.15 MMT (85 million bu). The feed corn in-quota tariff rate is0% for 8 MMT (315 million bu).
á The WTO bound tariffrate for raw cotton is 2%, but the current applied rate is 0%. This is technically a TRQ being appliedwith an unlimited quota amount.
á A fixed annual paymentof 600,000 won/ha (about $253/ac) is made to rice farmers for maintaining ricepaddies.
á The target price forrice for crop years 2005 to 2007 is 2,126 won/kg ($94.35/cwt). If the price falls below the targetprice, the government pays farmers 85% of the difference between the target andmarket price for rice purchases made by the government. The target price isrevised every three years.
á Korea has an importquota for rice with country-specific provisions. Tariffs within the quota are 5%. Korea has the right to terminate the minimum-access quotaand move to the tariff-rate quota.
á The Korean governmentmaintains a program to encourage producers to reduce rice area and increasesoybean production. In the 2005/06crop year, the government purchased soybeans from converted rice paddies at4,204 won/kg ($114.31/bu).
á A state trading companymakes purchases of U.S. No. 1 non-biotech-enhanced soybeans for food processingthrough an identity preserved certification system under a tariff rate quota.
á In-quota tariff ratefor soybeans is 5% and the out-of-quota tariff rate is 487%. The TRQ quantity is 1.350 MMT (50million bu).
á The government hasannounced a reduction in the import tariff on refined sugar from 50% to 40%.
á The applied tariff ratefor feed wheat has been reduced from 1.8% to 0% for 2007 onward. The in-quota tariff rate for millingwheat is to remain unchanged at 1% for 2.4 MMT (88 million bu).