Good morning, fellow Koreans,

Last week, there was a signing ceremony at Cheong Wa Dae for the promulgation of the revision to the Agricultural Cooperatives Act. As President, I held the special ceremony to sign the revised act because it has enormous historic significance. The complete overhaul of the 50-year old structure of the National Agricultural Cooperative Federation (NACF) was designed to reestablish it as an institution working in the interest of farmers and to strengthen its competitiveness.

The NACF has thus far been criticized for being negligent in carrying out its core businesses such as retail distribution while concentrating too much on financial activities. It is true that the NACF has not lived up to the expectations of farmers. It has not fulfilled its entrusted role, and its previous heads have been brought to justice because of their involvement in corruption scandals.

In the wee hours of the morning one day in December 2008, I made a visit to Garak Market, an agricultural and fisheries wholesale market. There, when I spoke with farmers who came from provincial areas, I emphasized that, “the NACF must be reborn as an organization that represents the interests of farmers.” Finally, I have been able to realize that promise.  

An attempt to reform the NACF began in 1994, but the effort was held up by resistance from entrenched interests and the self-interest of the political sector. For this reason, the passage of the revision to Agricultural Cooperatives Act during the plenary session of the National Assembly on March 11 can be considered a landmark in the history of agriculture in Korea.

It is all the more meaningful in that both the ruling and opposition parties reached an agreement through dialogue and in that all the stakeholders, including the NACF, came together. I am grateful to Rep. Choi In-kee, the Chair of the Food, Agriculture, Forestry and Fisheries Committee, Rep. Choung Hae-gul, the Chair of the Legislation Review Subcommittee and other ruling and opposition lawmakers for their dedicated efforts to revise the Act.

Chairman Choi Won-byung of the NACF, also played an important part in the process. In addition, my appreciation goes to the heads of local cooperatives and members of farmers’ organizations, who have also joined the effort. I hope many other important issues in state affairs can also be solved through such dialogue and compromise.

The crux of the revised Agricultural Cooperatives Act lies in the separation of the financial and agricultural businesses of the organization with a view to boosting the competitiveness of agriculture in general, including retail distribution. The revision this time will put an advanced system in place that will enable farmers to single-mindedly devote themselves to production with the NACF taking responsibility for distribution and sales.

If the NACF takes charge of the distribution and sales of farm produce and thus, streamlines the intermediary process, it would enable farmers to sell at a fair price and consumers to purchase more cheaply. This will help stabilize the supply and demand of farm products and reduce the volatility of consumer prices, benefitting the overall national economy.

Domestic agricultural industry now has to engage in global competition amid the increasing trend of market liberalization. If the Government and farmers join forces, the domestic agricultural industry would have great potential to make its presence felt overseas.

With everyone moving to the city,

The countryside looks so forlorn
That it cries.

Don’t cry, the countryside.

About a decade ago, a child living in the countryside portrayed her farming village in this way. However, things are now changing. Ahn Hong-seok, living in Yeongcheon, North Gyeongsang Province, started growing pears in 1995. He experienced such devastating failure in the first harvest that he had to dig up all the pear trees.

Even in the face of this crushing failure, he did not give in to frustration. Instead, he devoted himself to research, learning organic farming techniques day and night. As a result, he was able to acquire the technique to maximize the sweetness of pears. Now, his yearly sales stand at 150 million won, or about US$137,000. In addition, his pear juice is being exported to the United States. I hope he realizes his dreams of reaping great success in the global market.

Many people often say that farming is a sunset industry, but it is not true. With the advent of a bio-agriculture era driven by progress in agricultural bioengineering, farming is now emerging as a promising future growth engine. In the first year after this Administration was launched, it changed the name of the Ministry of Agriculture to the Ministry for Food, Agriculture, Forestry and Fisheries and expanded its functions. The rationale of the Government was that food processing would greatly increase the value-added of the industry.

As agricultural imports from China increase, some people say that Korean agriculture is being threatened. But having a huge market like China close by may well be an opportunity for us. As China keeps adding high income earners day by day, the market for high-end agricultural products is growing very rapidly in that country. This presents a good chance for the high value-added organic agricultural and fisheries products of Korea to succeed in a big way. 
I dare say agriculture in the 21st century is a multi-cultural industry as well as a knowledge-based industry. Agriculture is no longer about the simple production of food but is an industry that combines food with tourism, cultural experiences, leisure and even arts.

In collaboration with farmers, the Government will do all it can in order to realize farm incomes that are even higher than urban incomes and to build lively farming communities that attract more and more people. The nation can open a new age for agriculture, if the people in the industry are willing to face challenges and strive to stand on their own feet with the support of the drastically transformed agricultural cooperatives.

My fellow Koreans and farmers,

According to the revised Agricultural Cooperatives Act, a series of follow-up measures will be taken before next March to greatly advance the organizational and business structure of the NACF. The Government will not spare any effort to render systematic support and to help bring about a globally advanced NACF.

I trust that the NACF, farmers’ organizations and political sectors will work together even more closely in the years to come. Since this historic feat was only possible after 17 years because of joint cooperation by all of us, we must now move forward beyond our self-interest and work together for the greater good.

Thank you very much.