President Lee: "Clear Compensation for Agricultural Market Opening Losses... Government to Consider Covering 700 Billion Won Rural Fund Shortfall"

President Lee Says, “Agricultural Market Opening Demanded at Every Trade Agreement... Export Benefits Should Be Shared”

Rural Partnership Fund at Only 300 Billion Won, Far Short of 1 Trillion Won Goal... “A Matter of Trust in the Government”

On July 16, President Lee Jae-myung stated that if the process of expanding overseas markets through trade agreements necessitates opening up the agricultural and livestock markets, then sufficient compensation and support must be clearly provided to farmers who are adversely affected. He also instructed officials to consider having the government cover the approximately 700 billion won shortfall for the Korea Agricultural and Fishing Villages Win-Win Cooperation Fund, which was established during past free trade agreement (FTA) negotiations but has reached only 30% of its fundraising target.

President Lee Jae-myung is speaking at the ministry work report session on land, agriculture, food, and maritime affairs held at the Blue House State Guest House on July 16, 2026. Photo by Blue House Press Photographers Group, Yonhap News Agency

At the Ministry of Agriculture, Food and Rural Affairs work report held at the Blue House State Guest House on this day, President Lee said, "When entering into trade agreements to engage in diplomacy and develop markets with other countries, concessions in the fields of agriculture and livestock are inevitably required. This issue has continued to arise even during my recent meetings with several countries." He added, "We cannot avoid entering into trade agreements, so ultimately we must adjust the interests of all parties involved. If groups benefiting from changes in the economic order are required to take some responsibility for the groups incurring losses, it will be more rational and there will be less resistance." In other words, if the agricultural sector must bear the brunt of losses for the expansion of export industries, the benefiting companies or the government should share the cost. President Lee stated, "In order for South Korea to expand its export markets and its economic territory, there should be no side that incurs damage. If there are losses, equivalent compensation must be offered." He then instructed the Ministry of Agriculture, Food and Rural Affairs to engage in serious consultations with farmers' organizations regarding the scale of losses and compensation measures.

President Lee also specifically criticized the disappointing fundraising performance of the Korea Agricultural and Fishing Villages Win-Win Cooperation Fund, which was promoted in connection with initiatives such as the Korea-China FTA. This fund, introduced with a goal of raising 1 trillion won to support agricultural and fishing villages through voluntary contributions from businesses benefitting from FTAs, has only collected about 300 billion won so far. President Lee remarked, "Although there were verbal promises to raise 1 trillion won, relying entirely on corporate goodwill and voluntary participation resulted in only 30% being raised. From my perspective, it seems there was some trickery involved at the time." He continued, "There should have been a mandatory contribution tied to export volumes or export profits. Concrete compensation must be provided to domestic industries and farmers who are harmed by market opening."

As the government-pledged fund has not been properly created, President Lee also proposed that the funding gap could be filled by government finances. He said, "If the government promised farmers it would establish a 1 trillion won fund and then failed to do so, shouldn't the government be held accountable? The shortfall is said to be about 700 billion won, and considering the recent favorable tax revenue situation, explore ways for the government to shoulder this responsibility instead." He added, "This is not just a matter of providing subsidies—it's a matter of trust in the government," and suggested that various financial sources, such as increased special rural taxes, could be utilized. In response, Song Miryung, Minister of Agriculture, Food and Rural Affairs, said, "Farmers feel that the government's policies for post-market opening support have always sounded similar, but the promises were not kept properly. If the very production base is shaken, recovery is difficult, so we will discuss alternatives with farmers' organizations."

Song Miryung, Minister of Agriculture, Food and Rural Affairs, is reporting at the ministry work briefing chaired by President Lee Jae-myung at the Blue House's State Reception Hall on July 16, 2026. Photo by Cheongwadae Press Photographers Group, Yonhap News Agency

The work report also addressed measures to stabilize the recently surging price of eggs. The government has decided to import 230 million eggs to expand supply, with shipments already entering the country. Minister Song explained, "Tens of millions of imported eggs are arriving every week, and as they are supplied to the market at relatively low prices, they are helping to bring prices down."

Domestic egg production amounts to about 49 million eggs per day. The 230 million eggs being imported are equivalent to about four to five days’ worth of domestic consumption. Although the absolute volume is not large, the addition of imports to domestic production is expected by the government to send a signal of price stabilization. Minister Song commented, "Egg production for July is about 0.1% lower than during the same period last year. With the added imports, total supply in August is expected to exceed last August’s level."

The recent rise in egg prices has been attributed to a combination of decreased production due to winter season avian influenza outbreaks and increased egg consumption stemming from higher prices for other protein foods. President Lee noted, "Domestic production decreased slightly, yet prices rose significantly. Because agricultural and livestock prices are highly volatile, we must manage them with even greater care for the sake of price stability."

This content was produced with the assistance of AI translation services.