South Korea lays legal groundwork to grow agro-industry into a 211-trillion-won national growth sector

South Korea has established a legal foundation to systematically develop its "agro-industry" — a sector spanning not only agricultural production but also processing, retail, smart farming and the pet industry.

The Ministry of Agriculture, Food and Rural Affairs said Monday that an amendment to the enforcement decree of the Agriculture, Rural Community and Food Industry Basic Act takes effect Wednesday, broadening the scope of agricultural policy beyond farming, rural communities and the food industry to encompass the full range of upstream and downstream agro-industries.

The revised decree creates a legal basis for nurturing and supporting the entire agro-industry, including agricultural product processing and retail, agriculture- and rural-related services, and input-material industries such as fertilizers, pesticides and farm machinery.

The ministry said the spread of advanced technology and shifts in consumer and retail environments have generated new added value in areas such as smart farming, the pet industry and agricultural equipment. Support had previously been provided under separate laws, however, limiting the government's ability to foster these sectors in a coordinated way.

According to estimates by the Korean Agricultural Economics Association, the domestic agro-industry generated 211 trillion won ($137 billion) in added value in 2023, accounting for 8.9 percent of total industrial output — nearly triple the 70 trillion won recorded in 2003.

With the decree now providing a basis for formulating agro-industry development measures, the government's five-year Agriculture, Rural Community and Food Industry Development Plan will incorporate agro-industry promotion as a key priority. Technology development, research and development, international cooperation and export promotion policies are also set to be extended across the broader agro-industry.

"By establishing a legal basis for agro-industry development within the Agriculture and Food Basic Act — the cornerstone of agricultural policy — we have laid the groundwork to systematically nurture the entire value chain, from input-material industries to processing, retail and services," Agriculture Minister Song Mi-ryeong said. "We will support the sector in raising its added value through the convergence of advanced technologies and growing into a core national industry of the future."