Agricultural products price stabilization law in force from 27 August — a price stabilization scheme that covers part of the fall when prices drop below the benchmark
Source material is a Korean government announcement (in Korean).
With the 'Act on the Distribution and Price Stabilization of Agricultural and Fishery Products' taking effect on 27 August, an agricultural product price stabilization scheme is introduced under which the government covers a set portion of the fall when agricultural product prices drop sharply despite supply and demand having been managed in advance.
Key facts
| Date of effect | 27 August 2026 — 'Act on the Distribution and Price Stabilization of Agricultural and Fishery Products' |
|---|---|
| Price stabilization scheme | Where prices drop sharply despite pre-emptive supply and demand management, a set portion of the fall is covered |
| Supply and demand management system | The central government, local governments and producer organisations jointly take part in managing cultivation area, and the ministry draws up an annual agricultural supply and demand plan based on metropolitan and provincial supply and demand management plans |
| Committee reorganisation | The Agricultural Product Supply and Demand Adjustment Committee changes from an advisory body to a deliberative committee, and the basis for its establishment and operation is raised from the enforcement rules to the Act |
| Detailed criteria | The Agricultural Product Price Stabilization Deliberation Committee (chaired by the Vice Minister of Agriculture, Food and Rural Affairs, 15 members in total, with at least one third (1/3) being officials of producer organisations for individual items) is to deliberate in early September on the items covered and the payment rate for the difference |
| Enquiries | Ministry of Agriculture, Food and Rural Affairs, Horticulture Industry Division 044-201-2244 |
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The Ministry of Agriculture, Food and Rural Affairs said on 26 August that the 'Act on the Distribution and Price Stabilization of Agricultural and Fishery Products (농수산물 유통 및 가격안정에 관한 법률)' takes effect on 27 August. Under it, an agricultural product price stabilization scheme (농산물가격안정제) is introduced that covers a set portion of the fall when prices drop sharply despite supply and demand having been managed in advance. A pre-emptive supply-and-demand management system in which the central government, local governments and producer organisations jointly take part in managing cultivation area is also strengthened, and the ministry will draw up an annual supply and demand plan for agricultural products based on the metropolitan and provincial supply and demand management plans prepared by local governments. The Agricultural Product Supply and Demand Adjustment Committee, which has been run as an advisory body, is reorganised into a committee that deliberates on major supply and demand policies, and the basis for its establishment and operation is raised from the enforcement rules to the Act. A legal basis was also created for drawing up operating plans for stockpiled agricultural products and for strengthening support for losses arising in the course of contract cultivation. Major details such as the items covered by the price stabilization scheme and the payment rate for the difference are to be confirmed and announced separately after deliberation by the Agricultural Product Price Stabilization Deliberation Committee in early September.
Background — why this change
The Act was brought into force to strengthen the state's responsibility for agricultural supply and demand policy and to support stable farming activity by farm households. The ministry has discussed amendments to subordinate legislation and how to operate the system through research services and by gathering views from academia and producer organisations, and supply and demand plans are confirmed after deliberation by the Agricultural Product Supply and Demand Adjustment Committee, in which producer organisations take part. At least one third (1/3) of the members of the deliberation committee are officials of producer organisations for individual items.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
What is the agricultural product price stabilization scheme?
It is a scheme under which a set portion of the fall is covered when prices drop sharply despite agricultural supply and demand having been managed in advance.
Which items are covered?
Major details such as the items covered and the payment rate for the difference are to be confirmed and announced separately after deliberation by the Agricultural Product Price Stabilization Deliberation Committee in early September.
How does supply and demand management change?
A pre-emptive supply-and-demand management system in which the central government, local governments and producer organisations jointly take part in managing cultivation area is strengthened, and the Ministry of Agriculture, Food and Rural Affairs draws up an annual agricultural supply and demand plan based on the metropolitan and provincial supply and demand management plans.