The South Korean government will give up its status as a developing country at the World Trade Organization (WTO). According to the Ministry of Trade, Industry and Energy on October 21, the government will soon announce its renunciation of the status of developing country. South Korea was recognized as a developing country in the agricultural sector when the WTO launched in 1995. However, the situation changed after U.S. President Donald Trump recently asked countries that have achieved economic growth to relinquish the status of developing country at the WTO. When he mentioned separate measures against countries that failed to respond, Taiwan, Brazil, Singapore, and the United Arab Emirates renounced their status as developing countries. The South Korean government also joined in such action after judging that it would be in the best interest of the nation considering U.S. trade pressure and the negotiation on defense contributions.

What is concerning about renouncing the developing-country status is the damage to our agricultural industry. The government claims that the damage in our agricultural sector will not be significant. They argue, "It doesn't mean we have to give up existing privileges, and whether or not such privileges will be maintained will be determined in future negotiations." At the same time, the government also said that it was unknown as to when or if such negotiations would take place. However, once the government sits at the negotiating table, it is unlikely for our nation to receive the same benefits as before. South Korea's tariff barriers on agricultural and fishery products have collapsed with free trade agreements. The nation had managed to designate and protect major crops, such as rice, as special items using its status as a developing country. But if we give up this status, we will have to lower the tariffs on imported rice. The government will also have to halve its agricultural subsidies, used to stabilize prices of agricultural products, such as rice. Specifically, the government will have to drastically lower the subsidies from nearly 1.5 trillion won to 800 billion won. This would drill a hole in the bulwark that protects the already challenged agricultural industry in South Korea.

Farmers' groups are fiercely opposing the government's decision to relinquish the status of developing country at the WTO. They argue that the government's decision is a declaration renouncing trade sovereignty and agriculture. The government is meeting farmers' groups to collect opinions. However, farmers' groups argue that the government has failed to present any fundamental and long-term answers.

The farmers' argument may be excessive. But agricultural income remains stagnant despite over two decades of being recognized as a developing country by the WTO. The income gap between urban and rural areas has not narrowed. Perhaps this is all because the government has stood idle in stimulating the agricultural industry. Rather than rush to focus on minimizing the damages to the nation’s agricultural industry caused by the latest decision, the government should work to accurately diagnose the reality of our agricultural industry and provide measures to stimulate the industry in the long-term.