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The Current Status of Changes in Korean Rural Villages and Direction for Mid- and Long-term Development (Year 3 of 5)
Author Park, Sihyun
Views 103863 Publication Date 2018.02.14
Original
Background and Contents of Research
This study was planned as a mid- and long-term project for five years from 2015 to 2019 to examine multi-level changes in spatial and socio-economic aspects in Korean rural villages and identify the current status and changes in individual villages. The first-year study reviewed changes in the comprehensive condition by analyzing the current status of rural villages based on national statistical data and set an overall framework for the mid- and long-term research. The second-year study furthered the general research on the current status of changes in rural villages and design of research, which was conducted in the first-year study, and deliberated changes in rural villages from the physical aspect and viewpoint of community activities by local residents. This third-year study, which was conducted this year, examined the trend of economic changes in rural villages and factors for changes based on research results on the current status of changes in villages found in the first- and second-year studies and presented the direction for policy on the basis of such results.

Methods of Research
This study is based on literature review, analysis of statistical data and a survey of economic activities in the case village and other villages. The trend of macroscopic changes in economic activities was studied by utilizing regional survey data and data on the farm economy in the Census of Agriculture, Forestry and Fisheries, which represents the national statistical data. The survey was conducted for a total of 20 villages, including 15 villages selected in the previous study, one island and fishing village added this year and four villages in the “Research on the History of 20 Years” conducted by the Korea Rural Economic Institute (KREI). The content of the survey includes the current status of economic activities, agricultural and fisheries activities and village economic activities.

Research Results and Implications
The percentage of farm households without a farming successor among farm households in Korea is over 90%. While the average income of farm households in the country slightly increased for the past decade, agricultural income decreased by 1.5% on average in the same period; off-farm income rose by 4.0% on an annual average. According to the results of the study by KREI on the recent trend of case villages in which changes for 20 years from 1981 to 2001 were observed, the population of the villages decreased to one-third or one-fourth of the population in 1985. The average age of agricultural managers increased from the age of 53.6 in 1985 to the age of 73.1 in 2017. No economic and agricultural groups organized in the villages at the time of the survey in 1986 existed in 2017. It can be concluded that overall rural villages in Korea are losing vitality due to macroscopic and external power of aging population and globalization.
People in their 70s continue farming activities in rural villages, without any clear plan on retirement. Under these circumstances, it is imperative to gradually shift rural resources, which are concentrated on elderly people in their 70s, to the younger generation. Although common economic activities have been promoted as administrative assistance, the level of participation in these activities is low; 98% of agricultural activities in the case village are individually performed. Reasons for this low level of common economic activities can be found in weakened community activities in rural villages, which were traditionally performed, and uncertain economic profits through these activities. It can be said that it is required to establish a community in a different style from a village to operate common economic activities.
Meanwhile, some villages started to seek new economic activities by utilizing their own assets such as traditional culture and village landscape. Especially, new economic activities tend to be triggered by people returning to farming and rural areas. The importance of practical implementation of policy on returning to farming and rural areas can be highlighted again for the vitalization of rural villages. Economic activities in rural villages are currently expanding beyond the boundary of a village. Such expansion of spatial boundary in economic activities has a close relation with the diversity of economic players and the spatial boundary of a community, which is formed by these people. It implies that a policy for promoting the formation of a community based on eup (town), myeon (township), city or province, not a village, is required.
When it comes to policy direction, it is necessary to develop practical policies to encourage economic activities for local residents and accomplish a public goal. As a major policy task, this study suggested a measure to institutionalize the “village farming” for rice farming, which is typically implemented in rural villages. Second, organizing a community based on a wide region was proposed to overcome the limitations in rural villages. Third, this study suggested that a rural activist group should stipulate concrete acts for preserving and managing the natural environment in the region and a policy to provide corresponding subsidies should be introduced for administration. Lastly, it was suggested that it is required to improve existing policies on promoting management transfer by elderly people, implement policies on boosting the 6th industrialization continuously and inspect and enhance existing village projects.

Researchers: Park Sihyun, Jung Moonsoo, and Min Kyungchan
Research period: 2017. 1. ~ 2017. 12.
E-mail address: shpark@krei.re.kr

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