28 reservoir and freshwater lake sites to be developed by 2030

Last year's maintenance costs reached 469 billion won; renewable energy contributed 27.7 billion won

Profit-sharing model to shift from private-led to equal split among residents, private firms and the corporation

Korea Rural Community Corporation President Kim In-jung speaks at a press briefing for Ministry of Agriculture, Food and Rural Affairs correspondents held at the Saemangeum 33 Center in Gunsan, North Jeolla Province, on Wednesday. [Korea Rural Community Corporation]
Korea Rural Community Corporation President Kim In-jung speaks at a press briefing for Ministry of Agriculture, Food and Rural Affairs correspondents held at the Saemangeum 33 Center in Gunsan, North Jeolla Province, on Wednesday. [Korea Rural Community Corporation]

South Korea's agricultural water infrastructure faces an annual funding shortfall of around 200 billion won, and the Korea Rural Community Corporation plans to close that gap by expanding renewable energy projects at reservoirs and freshwater lakes to 3 gigawatts by 2030, channeling the resulting power revenues back into facility upkeep.

The annual cost needed to properly maintain agricultural production infrastructure — covering disaster response, farming support and facility management — stands at about 650 billion won ($479 million), according to the corporation. Last year, actual maintenance spending reached 469 billion won, of which the corporation covered 312.4 billion won, or 66.6 percent, from its own resources. An additional 27.7 billion won generated from renewable energy projects was also directed toward maintenance.

Korea Rural Community Corporation agricultural infrastructure maintenance and renewable energy overview (Source: Korea Rural Community Corporation)

Annual adequate maintenance cost: about 650 billion won Actual maintenance cost (2025): 469 billion won Annual shortfall: about 200 billion won Self-funded amount: 312.4 billion won (66.6%) Renewable energy contribution: 27.7 billion won Power generation revenue (2025): 43 billion won Renewable energy development to date: 162 sites, 306 MW 2030 development target: 28 sites, 3 GW

"Providing proper service at agricultural water sites requires roughly 650 billion to 660 billion won a year," corporation President Kim In-jung said. "Ultimately, about 200 billion won worth of grievances accumulates every year."

The corporation's push to expand renewable energy is directly aimed at filling that funding gap. The model generates electricity from idle water surfaces at reservoirs and freshwater lakes under its management, then reinvests the power revenues into maintaining agricultural production infrastructure.

Through last year, the corporation had developed renewable energy projects across 162 sites totaling 306 megawatts, of which facilities owned by the corporation account for 165 MW. Power generation revenue last year came to 43 billion won. Solar accounted for 277 MW of the total, with small hydropower contributing 24 MW and wind power 5 MW.

The corporation plans to develop 3 GW across 28 large reservoir and freshwater lake sites by 2030. Some 2,333 smaller reservoirs will be made available as resources for the government's community solar income program. Reservoirs may use up to 10 percent of their total water surface for energy projects and freshwater lakes up to 20 percent; exceeding those thresholds requires approval from the Ministry of Agriculture, Food and Rural Affairs.

The expansion is not purely about scale. The corporation's rural energy division said it plans to shift the existing profit structure — currently dominated by private developers, who hold a 70 to 75 percent share while residents receive only 5 to 10 percent — toward a "3:3:3" model in which residents, private developers and the corporation each hold roughly one-third.

Under the new arrangement, residents would share in power revenues through bond participation, while the corporation's share would be reinvested in agricultural infrastructure maintenance. A community participation model requiring residents to hold at least an 8 percent bond stake will also apply to large-scale projects of 20 MW or more at reservoirs and freshwater lakes.

Kim said the corporation's renewable energy push is not about becoming a power generator in its own right, but about solving problems on the ground for farmers. The goal, he said, is to create a virtuous cycle in which revenues from the corporation's own assets flow back into agricultural water management and ultimately benefit farmers.


adastra@heraldcorp.com