Korean Farm Cooperatives Face Costs After Overseas Training Support Slashed
Agricultural groups were left with cancellation fees or self-funded trips after a state-run agency sharply reduced overseas training support and notified applicants after some had already made bookings.
South Korean farming cooperatives and agricultural associations have been left paying cancellation fees or covering overseas training costs themselves after a state-run agency sharply reduced financial support for a benchmarking program and informed applicants after some had already booked travel.
Funding for the Korea Agro-Fisheries & Food Trade Corporation's overseas benchmarking program for specialized agricultural production complexes fell to 63 million won this year from 523 million won last year, according to data submitted to Democratic Party lawmaker Moon Dae-rim. The number of supported complexes dropped from 41 to five.
The reduction was especially abrupt compared with recent years. The program supported 47 complexes with a combined 534.19 million won in 2023 and 45 complexes with 572.41 million won in 2024. The agency, commonly known as aT, had typically backed about 40 complexes annually, making this year's support roughly one-eighth of its usual scale.
Some participating groups said regional aT offices told them early this year that the program would continue as usual, without clearly warning that funding would be substantially reduced. Anticipating higher fuel surcharges and other travel costs, some organizations booked flights and accommodation in April and May. They were reportedly told around July that budgets had been cut or that their applications had received no allocation.
aT said detailed budgets for individual programs were not finalized until around June and that it had not known some participants had already made reservations. By then, however, several groups faced financial consequences. Four complexes that canceled trips incurred a combined 15.4 million won in paid or projected cancellation costs, with individual amounts ranging from 900,000 won to 6.5 million won.
Another 15 complexes proceeded, or plan to proceed, entirely at their own expense. Average support per complex last year was about 12.76 million won, indicating a potentially significant burden for smaller farming organizations. Some cooperatives completed trips before learning that no support had been allocated, while another postponed its visit until October and could still face cancellation charges.
Moon called the late notification an administrative failure and urged aT to assess the losses and provide a reasonable remedy. He also questioned a pattern of repeated support: among 66 complexes funded between 2022 and last year, 44 received assistance at least twice, while 10 were supported for four consecutive years.
The lawmaker said the program should be restructured to identify and develop new agricultural groups rather than repeatedly concentrating assistance on established complexes. The issue is expected to receive further scrutiny during the National Assembly's audit process.