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Support for Purchase of Domestic Raw Material and Agricultural Produce

151016-1-(2)

Excellent Agrifood Purchase Support
The Korea National Food Cluster prioritizes support for food corporations that have signed land allocation and move-in contracts with it by using funds (KRW 50.5 billion in 2014) for purchasing domestic agriculture produce.
– Support Target: Agrifood Processers, (Support Interest Rate) 4.0% Annually
– Business Duty: Purchase at least 125% of support funds worth of domestic agricultural produce
– Limit of Support: Within KRW 3 billion per business
The Korea National Food Cluster prioritizes support funds for the purchase, storage, and processing of domestic raw materials, agricultural produce, and subsidiary materials when exporting products that have been produced at the cluster, and has prepared methods that encourage preferential treatment of support conditions.
– Support Target: Agrifood Exporters, (Support Interest Rate) 3~4.0% Annually → 2~3% Annually
– Business Duty: Carry out exports that are equivalent to at least 50% of the loans
– Limit of Support: Within KRW 20 billion per business (limited to mutual investments, KRW 15 billion for mid-sized corporations)

Provides Information on Domestic Raw Material and Agriculture Produce and Revitalizes Contract Farming
The Korea National Food Cluster has obtained a grasp of the raw material demands of local corporations through the National Food Cluster Support Center, and then established a system that links the demands to associations of producing districts, corporate bodies, etc.
– Establishes a domestic raw material and agriculture produce information system (2000) based on the DB of registered agricultural management bodies and then links to the computer network of the National Food Cluster Support Center
The Korea National Food Cluster has selected items to transmit after consultations with local corporations, and then implemented a system where food corporations and producer associations each burden the cost of commissions and cancellation charges for the sake of fulfilling collateral of the contract farming.
* Implements a trial project in which the government covers a portion of the commissions (2017~2019/3 years, KRW 1.2 billion)

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