Enhancing the Effectiveness of 'Emergency Import Orders' to Prepare for Global Food Crisis... Mandatory Compensation for Losses to Companies

Partial Amendment to the Act on Development Cooperation for Overseas Agricultural and Forest Resources to be Promulgated on the 24th

From now on, the government will be obligated to compensate companies that suffer losses due to overseas agriculture and forestry resource import orders issued in response to international food crises. This is intended to enhance the effectiveness of emergency import orders.

The Ministry of Agriculture, Food and Rural Affairs announced on the 6th that the partial amendment to the Overseas Agriculture and Forestry Resource Development Cooperation Act, which was approved at the National Assembly plenary session, will be promulgated on the 24th after going through procedures such as the State Council meeting and presidential approval.

Until now, the Ministry has been promoting partial amendments to the relevant law to improve the effectiveness of emergency overseas agriculture and forestry resource import orders, which are a means to respond to food crises caused by war, disasters, etc., and to systematically promote official development assistance (ODA) projects in the agriculture and forestry sectors.

The amendment establishes the basis for compensating business operators for losses incurred due to emergency import orders and for requesting cooperation from related agencies necessary for emergency imports. The current law stipulates the obligation of overseas agriculture and forestry resource development companies to comply with emergency import orders. However, regulations on compensation for losses incurred by companies due to this were insufficient. Additionally, to swiftly import agriculture and forestry resources domestically during emergencies, cooperation from related agencies such as the Ministry of Foreign Affairs, Ministry of Oceans and Fisheries, and Korea Customs Service is essential during transportation, customs clearance, and import inspection processes. Therefore, the law newly establishes obligations for loss compensation and cooperation from related agencies.

Furthermore, it allows for the establishment of a comprehensive plan for agriculture and forestry sector ODA projects and the designation of a dedicated agency. In accordance with the government's overall ODA basic plan, a five-year comprehensive plan for agriculture and forestry sector ODA projects will be formulated, and a specialized agency will be designated to enable more systematic project implementation.

In addition, support for the overseas expansion of related industries such as agricultural machinery and agricultural materials has been enabled. This creates a foundation for synergy effects by allowing overseas agriculture and forestry resource development companies and related industry companies such as agricultural machinery and agricultural materials to jointly expand overseas, helping Korean agricultural companies to successfully enter and settle abroad.

The amendment is scheduled to take effect one year after its promulgation. The government plans to revise enforcement ordinances and rules to include detailed matters such as specific standards and procedures for loss compensation and the designation of a dedicated agency for agriculture and forestry sector ODA.

Jeong Hyeryeon, Director of International Cooperation at the Ministry of Agriculture, Food and Rural Affairs, said, "With the increasing regularity of climate crises and instability in international affairs, concerns are growing that Korea may face a food security crisis. Through this legal amendment, overseas agriculture and forestry resource development companies will be able to actively comply with emergency import orders without fear of economic losses, enabling a more effective crisis response."

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