April 21, 2008

South Korea mulling more aid for farmers after US beef concession

Days after its announcement last week to allow unrestricted imports of US beef, the South Korean government is mulling the abolishing of a slaughter tax and offering greater compensation for farmers whose cattle suffer from infectious cattle diseases.

The move is believed to be part of efforts to assuage disgruntled farmers' over the unrestricted entry of US beef

into the nation. US beef has been banned from the nation for most of the past two years due to mad cow disease concerns.

The plans were discussed in a Cabinet meeting chaired by Prime Minister Han Seung-soo on Sunday.

Currently, livestock farmers pay about 1 percent tax on the price of the animal to be slaughtered to the local governments, a practice which the industry has long abhorred.

The government is also considering raising the compensation for cattle culled during infectious disease outbreaks up from the present 60 percent. Farming groups want full compensation.