September 14, 2012

In order to help local farmers finance purchases of animal feed amid worries rising crop prices could hurt the livelihood of farming households, South Korea will provide KRW1 trillion (US$892 million) of financial support next year.

The support will be given in the forms of low-interest rate loans to farmers seeking to purchase animal feed, according to Finance Minister Bahk Jae-wan.

"There are growing concerns rising international prices of crops could put a significant strain on the domestic economy," Bahk told a price stabilisation meeting.

"We will supply KRW1 trillion worth of financial support through the Export-Import Bank of Korea next year, while greatly easing qualifications for receiving such support."

The move is intended to help local farmers and others struggling with slowing economic growth, and rising food and crop prices in the wake of extreme weather conditions at home and abroad, he noted.

South Korean farmers are vulnerable to fluctuations in international crop prices as they depend heavily on imports for animal feed. Of crop imports, about 60% is used to produce animal feed.