Targeted price for rice is the reference price for the variable direct payment from the direct payment for rice income compensation
This policy has been introduced as a safety net for farm businesses after the abolishment of the purchase policy in 2005 in preparation for rapid fall in rice prices
When the local rice price during the harvesting season fell below the targeted price, the fixed direct payment already paid from the 85% of the difference between the targeted price and the local rice price is paid as variable direct payment
* Variable Direct Payment = (Targeted Price - Local Rice Price) x 0.85 - Fixed Direct Payment
In 2005 - 2012, the targeted price was KRW 170,083 for 80kg rice, and in 2013 - 2017, the targeted price was KRW 188,000.
Since the introduction of the policy in 2005, total KRW 5.91 trillion has been paid in 9 installments