[War Supplementary Budget] Five More Regions Added to Rural Basic Income Pilot Project...Support Begins in Second Half of This Year

2026 Supplementary Budget Plan

Ministry of Agriculture Allocates 265.8 Billion Won

Farmland Surveys, Agricultural Product Discount Programs, and Inorganic Fertilizer Support Included

The government has decided to expand the pilot project for providing basic income to residents in rural and fishing communities facing the threat of depopulation. In the 2026 supplementary budget, the government has allocated 70.6 billion won for this purpose and plans to support five additional regions starting from the second half of this year. The pilot project for rural basic income provides residents in depopulating areas with 150,000 won per person per month in the form of local currency.

The Ministry of Agriculture, Food and Rural Affairs announced on the 31st that a total of 265.8 billion won has been allocated in the 2026 supplementary budget.

The Asia Business Daily DB

This supplementary budget aims to alleviate the management burden on farms caused by urea supply disruptions due to the Middle East war and the increase in the price of tax-free agricultural fuel, as well as to ease the burden of grocery prices for consumers. The measures include: ▲ easing fuel cost burdens for farms ▲ stabilizing livelihoods for farmers and consumers ▲ supporting K-food exports ▲ strengthening the foundation for farmland management ▲ and expanding the rural basic income pilot project.

First, 70.6 billion won has been allocated to add five more counties to the pilot project for rural basic income, as part of efforts to respond to rural depopulation. Currently, the pilot project is underway in 10 counties, and the supplementary budget will support five additional counties from the second half of this year. An additional 58.8 billion won has also been allocated to systematically manage farmland and expand farmland surveys.

This supplementary budget also includes funds to minimize damage to farms resulting from the Middle East war. Due to the prolonged high oil prices caused by the conflict, 7.8 billion won will be temporarily provided as an oil price-linked subsidy for heating fuel used by greenhouse farms, where heating costs account for a large proportion of total management expenses. The price of tax-free kerosene rose by 16.4%, from an average of 1,115 won per liter in February to 1,298 won as of March 29. The ministry plans to support farms by linking subsidies to the increase in tax-free fuel prices, thereby alleviating management costs and ensuring the stable production and supply of agricultural products.

Part of the purchase price for inorganic fertilizer will also be subsidized. This is a preemptive measure, as 38.4% of Korea’s total urea imports—the main ingredient for inorganic fertilizer—have been shipped through the Strait of Hormuz in the Middle East, raising concerns about rising fertilizer prices. Accordingly, the government has included 4.2 billion won in the supplementary budget to partially subsidize the purchase price of inorganic fertilizer for farms. In addition, 300 billion won (with 2.2 billion won in interest subsidies) has been additionally allocated as raw material purchase funds to help fertilizer companies secure raw materials smoothly.

Moreover, considering the potential rise in international grain prices due to higher maritime freight rates and exchange rate fluctuations, 65 billion won in additional livestock feed purchase loans has been allocated for livestock farms. In particular, 50 billion won has been added for 'agricultural and livestock product discount support' to ease the burden of grocery prices for consumers. Including the additional 30 billion won for seafood discount support, the total budget for agricultural, livestock, and seafood product discount programs amounts to 80 billion won.

In addition, 7.2 billion won has been allocated for agricultural and food export vouchers to reduce the logistics burden and help expand alternative export channels for agri-food export companies facing difficulties due to increased shipping costs, oil prices, and exchange rate fluctuations caused by the Middle East war.

An official from the Ministry of Agriculture, Food and Rural Affairs stated, "Going forward, the Ministry will continue to hold daily review meetings, listen to field difficulties, and pursue joint responses with the private sector to minimize damage to the agricultural sector caused by the Middle East war. We will swiftly implement support and supply stabilization measures for key agricultural inputs such as fertilizer, tax-free fuel, and feed, and make every effort to ensure that the burden across agriculture and related industries is substantially eased at the field level."

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