Economic analysis of the government pricing program for rice in South Korea
Rice has been cultivated in South Korea for several thousand years. Sufficient rice production for the people has been a critical objective of all political leaders and is still important to the Republic of Korea in the current era. Rice is well suited to the South Korean climate, since summers are characterized by high temperature, abundant rainfall and high humidity, which are favorable for ricegrowing. Eighty-four percent of South Korean farms produced rice in 1992, and 56 percent of arable land was devoted to rice production (Ministry of Agriculture, Forestry and Fisheries, 1994 [MAFF]). Moreover, 13 percent of the total population of South Korea lives in rural areas. Therefore, rice is the most crucial agricultural product in South Korea, both in production and as a staple food for consumers.