'Nominal Nong-eo Farmers' Crackdown... Must Pay Fines Instead of Administrative Penalties

Penalties for so-called 'Nailong farmers' who falsely register as agricultural management entities to receive various subsidies without engaging in agricultural activities will be strengthened.

The Ministry of Agriculture, Food and Rural Affairs and the Ministry of Oceans and Fisheries announced on the 16th that, with the enforcement of the amendment to the "Act on the Fostering and Support of Agricultural and Fishery Management Entities" starting from the 17th, the registration and management of management information for agricultural and fishery management entities will be reinforced.

The registration system for agricultural and fishery management entities is a system that registers management information of farmers and corporations seeking subsidies related to agriculture, fisheries, and rural areas to establish efficient agricultural and fishery policies and ensure transparent financial execution. As of January 2024, 1.96 million (1.83 million in agriculture, 50,000 in forestry, and 80,000 in fisheries) agricultural and fishery management entities are registered.

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The amendment strengthens penalties by increasing fines from up to 1 million KRW to up to 5 million KRW for those who register or change registration of agricultural and fishery management information through false or fraudulent means. Additionally, if the registration of an agricultural management entity is canceled due to fraudulent registration, new registration will be restricted for one year.

Furthermore, village chiefs and community leaders who are requested to verify or provide evidence of the actual farming or fishery activities of the management entities are required to verify or certify the information truthfully. If they verify or certify the information through false or fraudulent methods, fines of 250,000 KRW for the first violation, 500,000 KRW for the second, and 1 million KRW for the third violation will be imposed.

To ensure systematic registration and management of agricultural and fishery management entities, a legal basis for the registration criteria of agricultural and fishery management information has also been established. Previously, the system operated based on internal guidelines of the National Agricultural Products Quality Management Service, the registration agency. The enforcement decree now includes registration criteria requiring actual crop production with sales records or operational performance in agricultural management to qualify for registration. Annual surveys will also be conducted to improve the accuracy of registration information and to cancel registrations of non-agricultural or fishery persons.

However, the strengthened penalties to prevent false or fraudulent registration by non-agricultural or fishery persons will be applied from August 17, following a six-month grace period.

An official from the Ministry of Agriculture, Food and Rural Affairs stated, "We have codified the registration criteria for agricultural and fishery management information and strengthened penalties against those who register through false or fraudulent means. We expect this to prevent fraudulent registration by non-agricultural persons and ensure that benefits such as national subsidies reach those genuinely engaged in agriculture and fisheries."

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