Korea’s Agro-industrial Policy for Export Growth 

Have Produced Tangible Outcomes 

Smart farm exports saw a 115.9% year-on-year growth from USD 137 million in 2022 to USD 296 million in 2023, and the exports 

of agricultural chemicals increased by 103.2% from USD 245 million in 2022 to USD 499 million in 2023. Over the past year, the agriculture 

ministry focused on inter-ministerial cooperation, policy support expansion, communication with the agro-industry, inter-governmental cooperation, 

budget expansion, expansion of export vouchers, etc.

Sejong, 20 June 2024 — Amid the global economic slowdown and other challenging conditions, the policy of the Ministry of Agriculture, 

Food and Rural Affairs (MAFRA) to nurture the Korean agro-industry¹⁾ into a strategic industry for export growth has produced tangible outcomes. 

Last year, the Korean agro-industrial sector recorded a 1.2% year-on-year growth in exports. In particular, the exports of smart farms and agricultural 

chemicals more than doubled from the previous year. 

1) By the definition of the MAFRA, the agro-industry is about products from forward-and backward-linked agri-food industries (e.g. smart farms, agricultural equipment, agricultural chemicals, 

animal feed including pet food, veterinary medicine, etc.), excluding agri-food products.

* (1) Smart farm exports: a 115.9% year-on-year growth from USD 137 million in 2022 to USD 296 million in 2023.

   (2) Agricultural chemicals exports: a 103.2% year-on-year growth from USD 245 million in 2022 to USD 499 million in 2023.

Since 2023, the MAFRA has been running a support system for public-private cooperation to nurture K-Food Plus into a strategic industry for export 

growth. K-Food Plus (K-Food+) means agri-food products combined with products from forward-and backward-linked agri-food industries (e.g. smart farms, 

agricultural equipment, animal feed including pet food, veterinary medicine, etc.).

Since having established the Agri-business Export Promotion Division in April 2023, the ministry has carried out a wide range of policies to strengthen 

the export competitiveness of the Korean agro-industry over the past year. Specifically, the ministry has made efforts to step up inter-ministerial cooperation, 

expand policy support, and more closely and frequently communicate with people working in the industry. Importantly, in terms of the exports 

and construction orders of smart farms, the ministry focused on strengthening inter-governmental cooperation by dispatching the 3rd delegation 

of the Korea-Middle East Shuttle Economic Cooperation Group to Riyadh, Saudi Arabia, in connection with the summit diplomacy. This effort led 

to signing a “package deal” for smart farm construction.

To build on this success, the ministry is continuing its efforts to provide all-out support for Korean exporters in the agro-industry by increasing cooperation 

with other government ministries and strengthening policy support. Specifically, the ministry is focusing on two main areas for this year. The first is 

the expansion of the policy budget. The ministry has increased this year’s budget for export promotion of the agro-industry by 33% from last year’s 

and is thereby carrying out various, tailored support programmes for Korean exporters to expand their business in overseas markets. The second is 

closer inter-ministerial cooperation directed towards coordinating export policies. To this end, the ministry is working with other ministries, including 

the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups, to develop collaborative projects and expand support for exporters 

working in the agro-industry.

A pilot smart greenhouse, which accounts for the largest share of the budget for export promotion of the agro-industry, will pave the way for exporting 

smart-farm equipment, materials, and services, in a package deal, to the countries where the greenhouse will be built. This year, a pilot smart greenhouse 

is scheduled to be completed in Australia and the construction of another will start in the Kingdom of Saudi Arabia. The ministry will also select new 

additional countries in which to build a pilot smart greenhouse, and implement a new project to support a consortium of Korean smart-farm companies 

in their bids for package-deal contracts overseas. In addition, to open up new markets, the ministry will expand support for Korean exporters to participate 

in international fairs and open Korean booths. The ministry will also help increase the competitiveness of Korean exporters by providing support 

for obtaining foreign governments’ approval and financing the conduction of a market test.

* The MAFRA will expand support for Korean companies to enter new overseas markets in the following ways: (a) increasing a smart-farm road show from 2 rounds in 2023 to 4 rounds in 2024; 

(b) increasing Korean booths in an agricultural equipment exhibition from zero in 2023 to 4 rounds in 2024; (c) providing support for 20 Korean companies to participate in agricultural equipment exhibition 

(a new initiative launched in 2024); and (d) holding an agricultural equipment road show ( a new initiative launched in 2024).

At the same time, the ministry is collaborating with the Ministry of Trade, Industry and Energy (MOTIE), the Ministry of SMEs and Startups (MSS), 

and other government agencies. For instance, in 2024, the ministry and the Korea Trade-Investment Promotion Agency (KOTRA), a major component of 

the MOTIE, designated five trade offices in key global regions to support the export of K-smart farms. These global trade offices are working with 

the KOTRA’s overseas trade offices to fully focus on support for export by Korean smart-farm companies. Since 3 April this year, preferential treatment 

for trade insurance has been applied to companies in the agro-industry, as a result of collaboration between the ministry and the Korea Trade 

Insurance Corporation. 

The MSS has increased the volume of its export vouchers allotted to the MAFRA. With companies in the smart-farm and agricultural equipment industry 

having been newly included in the category of export voucher recipients for this year, a total of 70 companies from the backward- and forward-linked 

agri-food industries will receive the benefits. This is the largest volume allotted among ministries. 

Director-General Lee Sang-man of the MAFRA’s Agri-food Innovation Policy Bureau said: “The forward- and backward-linked agri-food industries 

have a large potential for export growth. We will provide a wide spectrum of support for Korean exporters in the agro-industry to take advantage of 

their innovative technologies and thereby enter overseas markets.”