[2021 National Audit] "Statistics Korea Analysis Less Market-Reflective Than Rural Economy Institute... Sample Size Should Be Increased"

Jeong Uncheon "Expanding Sample Farms from 3,000 to 10,000 Households and Reflecting Single-Person Farms"

[Sejong=Asia Economy Reporter Moon Chaeseok] There have been criticisms that the agricultural statistics from Statistics Korea do not properly reflect market conditions compared to surveys conducted by the Korea Rural Economic Institute, a national research institution. There are calls to include single-person farm households in the survey and to increase the number of sample farms.

According to data from the National Assembly's Planning and Finance Committee's audit on the 20th, provided by Jeong Uncheon, a member of the People Power Party, the agricultural statistics from Statistics Korea and the survey results from the Korea Rural Economic Institute differed. In April, Statistics Korea predicted the early-season onion cultivation area to be 1,500 hectares (ha), 24.4% smaller than last year. On the other hand, according to the Korea Rural Economic Institute, the cultivation area was 2,939 ha, which is actually 9.5% larger than last year. Rep. Jeong pointed out, "According to Statistics Korea's data, the volume of early-season onions decreased, so market prices should have risen, but at the end of April, onions were traded at prices about 30% lower than last year."

Statistics Korea also predicted in July that this year's onion production would increase by 408,529 tons (35%) from last year to 1,576,756 tons. The Korea Rural Economic Institute forecasted production to be 1,369,000 tons, a 2% increase from last year. The two statistics differ by more than 200,000 tons. Rep. Jeong criticized, "If Statistics Korea's analysis were correct, onion prices should have plummeted, but according to the Agricultural Products Distribution Information from the Korea Agro-Fisheries & Food Trade Corporation (aT), onion prices in July were about 1,900 KRW per kilogram, similar to 1,977 KRW in July last year."

Rep. Jeong said, "Statistics Korea responded by stating that 'Statistics Korea's statistics are nationally approved statistics prepared using scientific survey methods, whereas the Korea Rural Economic Institute's data are observational data intended to provide forecast information, so they are not comparable.' However, the fact that the Korea Rural Economic Institute's observational data better reflect market conditions than the nationally approved statistics indicates that there is a problem with how Statistics Korea compiles its statistics," criticizing the agency.

According to Statistics Korea's data, the average farm household income last year was 45.03 million KRW, the highest ever recorded. However, when the Korea Rural Economic Institute included single-person farm households in their survey, the average farm household income remained in the 30 million KRW range. Statistics Korea responded to Rep. Jeong, saying, "To maintain continuity with survey results compiled since 1962, single-person farm households are not included, and since single-person farm households are separately sampled from households with two or more persons, it is impossible to calculate integrated farm household income." In response, Rep. Jeong emphasized, "The average farm household income announced by Statistics Korea excludes the income of single-person farm households, but this should be included. As of last year, single-person farm households numbered about 200,000, accounting for 20% of the total, which is a significant proportion."

He also raised concerns about the number of sample farms used by Statistics Korea to calculate farm household income, which is only 3,000 farms (2,900 households with two or more persons and 100 single-person households). Rep. Jeong demanded improvements, saying, "The number of sample farms in Statistics Korea's statistics should be adjusted to about 10,000 households, which is approximately 1% of the total."

This content was produced with the assistance of AI translation services.