'FTAs unavoidable, but export gains must support farmers'

'Agriculture a strategic security industry — will meet sector soon'

President Lee Jae Myung delivers a commemorative address at the 20th World Korean Day ceremony in Songdo, Incheon, on Monday. [Yonhap]
President Lee Jae Myung delivers a commemorative address at the 20th World Korean Day ceremony in Songdo, Incheon, on Monday. [Yonhap]

President Lee Jae Myung said Tuesday he would use government funds to fill a 1 trillion won ($740 million) shortfall in a cooperative fund meant to compensate farmers, fishers and livestock producers harmed by free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. He also proposed levying charges on export sectors that benefit from FTAs to offset losses in affected industries, and signaled he would meet directly with those sectors.

Writing on X, formerly Twitter, Lee said pushback from farmers and other affected groups over the side effects of FTAs — including CPTPP — was as intense as it had been during the presidency of Roh Moo-hyun. "Until now, when an FTA was concluded, exporters and export manufacturers reaped the benefits, while farmers, fishers and livestock producers did not receive adequate compensation," he said.

Lee pointed to the poor performance of the existing rural cooperative fund and pledged to make up the gap through the public budget. "The 1 trillion won fund that was supposed to be established when the FTA was concluded was left to voluntary contributions, and less than 300 billion won has been raised to this day — eroding trust in policy and in government," he said. "Our administration has decided to first fill the unraised 1 trillion won from government fiscal resources to restore that trust, and I have directed that opinion gathering related to CPTPP be conducted thoroughly."

Lee said FTAs were unavoidable for South Korea as a trade-dependent, open economy seeking to expand export markets. "However, while most people benefit, there are those who suffer — farmers, livestock producers, fishers and forestry workers," he said.

He added that conflicts arising from the uneven distribution of gains and losses under expanded FTA policy were inevitable but manageable. "The solution is to have those who benefit contribute, bit by bit, to support those who lose out," he said. "For example, a levy at a set rate on the increase in exports attributable to an FTA could be used to compensate those harmed."

Lee said he felt he needed to meet directly with the affected farming, fisheries and livestock sectors. "There is no reason to treat what people say at large rallies and protests any differently from email petitions," he wrote. "I promised to do so, and I have kept that promise."

He also appealed directly to workers in agriculture, fisheries and livestock. "Please remember that I have made great efforts to improve the retail distribution order and protect rice prices, and that I even introduced a basic income for farmers and fishing communities to protect rural areas," he said. "I understand better than anyone the importance of agriculture, fisheries, livestock and forestry as strategic security industries — please do not worry too much." He closed by saying he would meet with them in person soon to hear their views fully.


sunpine@heraldcorp.com