RICE INCOME, ETC. COMPENSATION ACT

Article 1(Purpose) #

The purpose of this Act is to prescribe matters concerning the implementation of a direct payment system for compensating for rice income, etc. to stabilize the income of farmers, etc. and the establishment, operation, etc. of the variable direct payment fund compensating for rice income to secure financial resources necessary therefor.

Article 2(Definitions) #

The terms used in this Act shall be defined as follows: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

1. The term "farmer, etc." means farmers pursuant to subparagraph 2 of Article 3 of the Framework Act on Agriculture and Fisheries, Rural Community and Food Industry and agricultural association corporations and agricultural corporations pursuant to Articles 28 and 29 of the same Act;

2. The term "rice cultivation" means agriculture cultivating rice, lotus roots, dropwort, rushes and other plants prescribed by Presidential Decree in the farmland used as a rice field, irrespective of the land category;

3. The term "target price" means standard price fixed and publicly notified by the Minister for Food, Agriculture, Forestry and Fisheries in consideration of the average harvest price of rice, etc. in order to make variable direct payments to farmers, etc.;

4. The term "fixed direct payments" means a subsidy paid to the farmers, etc. engaged in rice cultivation, irrespective of the yield of agricultural products or fluctuation of prices;

5. The term "variable direct payments" means a subsidy paid to farmers, etc. who produce rice in the farmland used for rice cultivation in cases where the average harvest price of the rice produced in the relevant year is below the target price;

6. The term "being engaged in rice cultivation" means that a person directly performs (including cases in which only part of the farm work is entrusted to others) farming work necessary for rice cultivation at his/her own risk and expenses.

Article 3(Preparation of Policy to Stabilize Income of Farmers, etc.) #

(1) The Minister for Food, Agriculture, Forestry and Fisheries shall comprehensively establish and implement a policy concerning a system for paying income subsidies (hereinafter referred to as "direct payment system") to farmers, etc. to stabilize the income of farmers, etc. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(2) The State and local governments shall ascertain and analyze international trends concerning the implementation of a direct payment system for stabilizing the income of farmers, etc. and to endeavor to deepen international cooperation. <Amended by Act No. 9531, Mar. 25, 2009>

(3) The State shall raise financial resources necessary for implementing the direct payment system each year.

Article 4(Direct Payments Compensating for Rice Income, etc.) #

(1) The Minister for Food, Agriculture, Forestry and Fisheries shall pay income subsidies (hereinafter referred to as "direct payments compensating for rice income, etc.") to farmers, etc. to stabilize the income of farmers, etc. based on exemption standards from the reduction commitment on domestic subsidization pursuant to the Marrakesh Agreement Establishing the World Trade Organization. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(2) Direct payments compensating for rice income, etc.further classified into fixed direct payments and variable direct payments shall be paid each year.

Article 5(Farmland Eligible for Direct Payments Compensating for Rice Income, etc.) #

(1) Farmland eligible direct payments compensating for rice income, etc. shall be the farmland (referring to farmland referred to in the Farmland Act; hereinafter the same shall apply) used for rice cultivation from January 1, 1998 to December 31, 2000: Provided, That any of the following farmland shall be excluded: <Amended by Act No. 8352, Apr. 11, 2007; Act No. 8852, Feb. 29, 2008; Act No. 8929, Mar. 21, 2008; Act No. 9531, Mar. 25, 2009; Act No. 10764, May 30, 2011>

1. Farmland in any river area pursuant to Article 2 of the River Act: Provided, That with respect to farmland for which direct payments compensating for rice income, etc. were lawfully granted on more than one occasion from January 1, 2005 to December 31, 2008, and for which no compensation was granted by the year immediately preceding the year in which registration is filed as prescribed in Article 7 (1), this shall not apply in cases where the Minister for Food, Agriculture, Forestry and Fisheries recognizes that such farmland can be used for rice cultivation for one year or more;

2. Farmland regarding which permission for farmland conversion has been obtained or reporting on farmland conversion has been made pursuant Article 34, 35 or 43 of the Farmland Act and farmland about which consultation for farmland conversion has been completed (including cases where permission for, reporting or consultation on farmland conversion is deemed obtained or made pursuant to other Acts);

3. Any of the following farmland: Provided, That with respect to farmland for which no compensation was granted by the year immediately preceding the year in which registration is filed pursuant to Article 7 (1) from among the farmland in any of the following areas or zones, this shall not apply in cases where the Minister for Food, Agriculture, Forestry and Fisheries recognizes that such farmland can be used for rice cultivation for one year or more:

(a) Farmland in an residential, commercial or industrial area referred to in Article 36 (1) 1 (a) through (c) of the National Land Planning and Utilization Act;

(b) Farmland in an industrial complex designated pursuant to Articles 6, 7, 7-2 and 8 of the Industrial Sites and Development Act;

(c) Farmland in a prearranged area for housing site development designated pursuant to Article 3 of the Housing Site Development Promotion Act;

(d) Farmland in an area designated or notified publicly as a prearranged area for various development projects pursuant to other Acts;

4. Farmland possessed by a person falling under Article 13 (1) 1. In such cases, a restriction on farmland eligible for direct payments compensating for rice income, etc. shall be imposed during the period in which a registration by a person eligible for direct payments compensating for rice income, etc. from rice cultivation is restricted pursuant to Article 13 (2).

(2) Notwithstanding the provisions of the main sentence of paragraph (1), if farmland used for rice cultivation for one year or more before December 31, 1997 falls under any of the following subparagraphs, such farmland is eligible for direct payments compensating for rice income, etc.: <Newly Inserted by Act No. 8929, Mar. 21, 2008; Act No. 9531, Mar. 25, 2009>

1. Where rice cultivation has been inevitably suspended from January 1, 1998 to December 31, 2000 due to agricultural production infrastructure rearrangement projects pursuant to the provisions of subparagraph 5 (a) through (c) of Article 2 of the Rearrangement of Agricultural and Fishing Villages Act, such as arable land rearrangement projects, reclamation projects, etc.;

2. Where rice cultivation has been inevitably suspended from January 1, 1998 to December 31, 2000 due to natural disasters and damage from storm and flood pursuant to the provisions of subparagraphs 2 and 3 of Article 2 of the Countermeasures against Natural Disasters Act, such as typhoons, floods, etc.

(3) The maximum area of farmland eligible for direct payments compensating for rice income, etc. pursuant to paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries. <Newly Inserted by Act No. 9531, Mar. 25, 2009>

Article 6(Persons Eligible for Direct Payments Compensating for Rice Income, etc.) #

(1) Persons eligible for direct payments compensating for rice income, etc. shall be the farmers, etc. engaged in rice cultivation (including fallow) in farmland eligible for direct payments compensating for rice income, etc. pursuant to Article 5, and fall under any of the following subparagraphs: <Amended by Act No. 9531, Mar. 25, 2009>

1. A person meeting the requirements prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries, who is a junior agricultural manager, person specializing in agriculture, etc.;

2. A person who has lawfully obtained direct payments compensating for rice income, etc. on more than one occasion from January 1, 2005 to December 31, 2008.

(2) From among persons falling under paragraph (1) 2, persons who resides or have their main offices in an area other than an agricultural village pursuant to subparagraph 5 of Article 3 of the Framework Act on Agriculture, Rural Community and Food Industry shall be those whose main business is agriculture, as prescribed by Presidential Decree. <Newly Inserted by Act No. 9531, Mar. 25, 2009>

(3) Notwithstanding the provisions of paragraph (1), none of the following persons is eligible for direct payments compensating for rice income, etc.: Provided, That in cases falling under subparagraphs 3 and 4, they shall not be eligible for such direct payments only with respect to the farmland falling thereunder: <Newly Inserted by Act No. 9531, Mar. 25, 2009>

1. A person whose total income, excluding income from farming, is equal to or exceeds the amount prescribed by Presidential Decree;

2. A person, the area of whose farmland used for rice cultivation does not exceed 1,000 square meters;

3. A person who has been given an order to dispose of farmland pursuant to Article 11 (1) of the Farmland Act;

4. A person who does not own farmland but occupies farmland without obtaining permission.

Article 6-2(Announcement of Application for Registration) #

The Minister for Food, Agriculture, Forestry and Fisheries and the heads of local governments shall announce matters necessary for filing an application for registration for direct payments compensating for rice income, etc. including the following details on one or more of the official gazette, official reports, bulletin boards or daily newspapers, and via the internet by no later than seven days before the date of receipt of applications for registration pursuant to Article 7, as prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries:

1. Farmland eligible for direct payments pursuant to Article 5;

2. Persons eligible for direct payments pursuant to Article 6;

3. Period and methods of filing applications for registration;

4. Other matters necessary for filing applications for registration for direct payments compensating for rice income, etc.

[This Article Newly Inserted by Act No. 10946, Jul. 25, 2011]

Article 7(Registration of Persons Eligible for Direct Payments Compensating for Rice Income, etc.) #

(1) Those who intend to receive direct payments compensating for rice income, etc. shall file an application for registration each year with the heads of Eups, Myeons or Dongs (hereinafter referred to as "heads of Eups/Myeons") having jurisdiction over farmland by no later than the date specified by the Minister for Food, Agriculture, Forestry and Fisheries: Provided, That in cases where the pieces of arable farmland extend over two or more Eups, Myeons or Dongs in the same Si (including administrative cities pursuant to the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; hereinafter the same shall apply), Gun or Gu (referring to an autonomous Gu; hereinafter the same shall apply), they shall file an application to the head of an Eup/Myeon in which the largest piece of arable farmland is located. <Amended by Act No. 9531, Mar. 25, 2009>

(2) Matters necessary for filing applications for registration pursuant to paragraph (1) shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries. In such cases, the Minister for Food, Agriculture, Forestry and Fisheries may prescribe such matters separately by distinguishing farmers within the relevant jurisdiction [referring to applicants (including cases where an applicant cultivates farmland in a Eup/Myeon/Dong of another Si, Gun or Gu adjoining the Eup/Myeon/Dong in which the applicant resides) who resides in the Sis, Guns or Gus having jurisdiction over the address of farmland for which registration is filed]from the rest. <Newly Inserted by Act No. 9531, Mar. 25, 2009>

(3) Upon receiving an application for registration under paragraphs (1) and (2), the head of a Eup/Myeon shall issue a certificate of receipt to the relevant applicant. <Newly Inserted by Act No. Act No. 10946, Jul. 25, 2011>

(4) When the head of an Eup/Myeon receives an application for registration under paragraph (1), he/she shall conduct necessary inspections, such as on-site inspections, etc. to ascertain whether the applicant for direct payments compensating for rice income, etc. is engaged in the rice cultivation, and submit the application attached withthe outcomes of inspections to the Minister for Food, Agriculture, Forestry and Fisheries. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009; Act No. 10946, Jul. 25, 2011>

(5) In order toconduct necessary inspections, such as on-site inspections pursuant to paragraph (4), examination committees shall be established in Eups/Myeons/Dongs, and the organization, operating methods, etc. thereof shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries. <Newly Inserted by Act No. 8852, Mar. 25, 2009; Act No. 10946, Jul. 25, 2011>

(6) If an applicant for registration is recognized as eligible to receive direct payments pursuant to Article 6 based on the outcomes of inspections pursuant to paragraph (4), the Minister for Food, Agriculture, Forestry and Fisheries shall register such applicant as a person eligible for direct payments compensating for rice income, etc., and issue a certificate of registration to such applicant. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009; Act No. 10946, Jul. 25, 2011>

(7) Matters necessary for the subject matters and methods of inspections, issuance of certificates of registration, etc. pursuant to paragraphs (4) and (6) shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009; Act No. 10946, Jul. 25, 2011>

Article 8(Reporting, etc. on Modification of Registered Matters) #

(1) Where the area of farmland eligible for direct payments compensating for rice income, etc. or the area of farmland producing rice is changed, any registered person as eligible for direct payments compensating for rice income, etc. (hereinafter referred to as "registrant of direct payments compensating for rice income, etc.") shall register modification with the Minister for Food, Agriculture, Forestry and Fisheries, as prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(2) Farmers, etc., who acquire by transfer, rent or lease free of charge all or part of farmland eligible for direct payments compensating for rice income, etc. from a registrant of direct payments compensating for rice income, etc., shall report such fact to the Minister for Food, Agriculture, Forestry and Fisheries, as prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(3) If farmers, etc. who have filed a report under paragraph (2) are recognized as persons eligible for direct payments pursuant to Article 6, the Minister for Food, Agriculture, Forestry and Fisheries shall modify their registration as the registrants of direct payments compensating for rice income, etc. with regard to the relevant farmland. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(4) The provisions of Article 7 shall apply mutatis mutandis to the registration for modification. <Newly Inserted by Act No. 9531, Mar. 25, 2009>

Article 9(Payment of Fixed Direct Payments) #

(1) The Minister for Food, Agriculture, Forestry and Fisheries shall pay fixed direct payments to each registrant of direct payments compensating for rice income, etc. only regarding the farmland that maintains its shape and function according to standards prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(2) Detailed standards for and methods of calculating the amount of fixed direct payments, and other detailed matters necessary for payment shall be prescribed by Presidential Decree. <Amended by Act No. 9531, Mar. 25, 2009>

Article 10(Fixing and Change of Target Price) #

(1) The target price of products for years 2005 through 2012 shall be fixed, and may be modified every five years since then. <Amended by Act No. 8929, Mar. 21, 2008; Act No. 9531, Mar. 25, 2009>

(2) If the Minister for Food, Agriculture, Forestry and Fisheries intends to change the target price under paragraph (1), he/she shall obtain approval from the National Assembly. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(3) The target price to be changed under paragraph (2) shall be determined in consideration of price fluctuations for average rice yields, and detailed matters necessary for the methods of calculating such target price, procedures for change, etc. shall be prescribed by Presidential Decree. <Amended by Act No. 9531, Mar. 25, 2009>

Article 11(Provision of Variable Direct Payments) #

(1) The Minister for Food, Agriculture, Forestry and Fisheries shall make variable direct payments to persons meeting all the following requirements among the registrants of direct payments compensating for rice income, etc.: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

1. That he/she shall produce rice while maintaining the shape and function of farmland, as prescribed by Presidential Decree;

2. That he/she shall use agrochemicals and chemical fertilizers according to the standards prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.

(2) Variable direct payments made pursuant to paragraph (1) shall be an amount remaining after deductingthe fixed direct payments from the amount calculated by multiplying the difference between the target price and the average yield price of rice in the relevant year by 85 percent. <Amended by Act No. 9531, Mar. 25, 2009>

(3) Detailed matters necessary for the unit price of variable direct payments, method of calculating and paying an amount to be paid, etc. shall be prescribed by Presidential Decree. <Amended by Act No. 9531, Mar. 25, 2009>

Article 12(On-Site Inspections for Verification) #

(1) The Minister for Food, Agriculture, Forestry and Fisheries shall verify whether a registrant of direct payments for compensating for rice income, etc. maintains the shape, function, etc. of farmland according to the standards pursuant to Articles 9 (1) and 11 (1). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(2) If necessary for verification pursuant to paragraph (1), on-site inspections for verification, soil elements tests or residual agrochemical tests of cultivated plants may be conducted. <Amended by Act No. 9531, Mar. 25, 2009>

Article 13(Reduced Payment of Direct Payments Compensating for Rice Income, etc. or Restrictions on Registration thereof) #

(1) If a registrant or recipient of direct payments compensating for rice income, etc. falls under subparagraph 1 or 2, the Minister for Food, Agriculture, Forestry and Fisheries shall pay none of the fixed direct payments and variable direct payments with regard to all the registered farmland; if he/she falls under subparagraph 3 or 4, the Minister for Food, Agriculture, Forestry and Fisheries shall not pay some of the fixed direct payments and variable direct payments with regard to the relevant farmland: <Amended by Act No. 9531, Mar. 25, 2009>

1. Where he/she has registered farmland or received direct payments by deceit or other fraudulent means;

2. Where he/she fails to meet the requirements for an eligible person pursuant to Article 6 (3) 1 or 2;

3. Where he/she fails to meet the requirements for an eligible person pursuant to Article 6 (3) 3 or 4;

4. Where he/she fails to meet the requirements for payment pursuant to Article 9 (1) or 11 (1).

(2) The Minister for Food, Agriculture, Forestry and Fisheries may restrict persons who become ineligible for both fixed direct payments and variable direct payments for falling under paragraph (1) 1 from registering as persons eligible for direct payments compensating for rice income, etc. pursuant to Article 7 up to five years. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(3) Standards for restrictions on making fixed direct payments and variable direct payments pursuant to paragraph (1) and detailed standards for restrictions on registration pursuant to paragraph (2) shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries considering the type and degree of a violation, etc. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

Article 13-2(Fraudulent Gains and Surcharges) #

(1) Where the Minister for Food, Agriculture, Forestry and Fisheries has already paid direct payments compensating for rice income, etc. despite the grounds referred to in the subparagraphs of Article 13 (1), he/she shall recover such direct payments. In such cases, he/she shall additionally collect two times the amount already paid in cases falling under Article 13 (1) 1.

(2) Where an obligor for payment fails to pay in full the amount payable pursuant to paragraph (1) by the payment deadline, the Minister for Food, Agriculture, Forestry and Fisheries shall impose surcharges according to the following classifications: <Amended by Act No. 10946, Jul. 25, 2011>

1. Where he/she pays such amount within one week from the date on which the deadline for payment expires: An amount equivalent to one percent of the amount in arrears;

2. Where he/she pays such amount after one week from the date on which the deadline for payment expires: An amount equivalent to three percent of the amount in arrears.

(3) If an obligor for payment fails to pay the amount in arrears, the Minister for Food, Agriculture, Forestry and Fisheries shall impose an amount calculated by adding a surcharge equivalent to one percent of the amount in arrears to the surcharge pursuant to paragraph (2) upon the lapse of every one month from the date on which the deadline for payment expires. In such cases, total surcharges shall not exceed nine percent of the amount in arrears pursuant to paragraph (2).

(4) If an obligor for payment fails to pay the amount imposed or surcharges pursuant to paragraphs (1) through (3), the Minister for Food, Agriculture, Forestry and Fisheries may collect them in the same manner as national taxes in arrears are collected.

[This Article Newly Inserted by Act No. 9531, Mar. 25, 2009]

Article 14(Establishment of Farm Households' Income Stabilization Deliberation Committee) #

(1) A deliberative committee for stabilizing the income of farm households shall be established under the jurisdiction of the Minister for Food, Agriculture, Forestry and Fisheries to deliberate on matters concerning the stabilization of the income of farmers, etc. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(2) The deliberative committee for stabilizing the income of farm households shall deliberate on the following matters : <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

1. Matters concerning basic policies and systems regarding the stabilization of the income of farmers, etc.;

2. Matters concerning the setting and change of the target price, fixed direct payments and variable direct payments;

3. Matters concerning subsidization to stabilize the income of farmers, etc.;

4. Matters concerning the management and operation of the fund for variable direct payments compensating for rice income, etc. pursuant to Article 19;

5. Other matters that the Minister for Food, Agriculture, Forestry and Fisheries deems necessary for the stabilization of income of farmers, etc.

Article 15(Composition and Operation of Deliberative Committee for Farm Households' Income Stabilization) #

(1) The deliberative committee for stabilizing the income of farm households shall consist of 21 or less members including a chairperson and two vice chairpersons. <Amended by Act No. 9531, Mar. 25, 2009>

(2) The Minister for Food, Agriculture, Forestry and Fisheries shall be the chairperson; vice chairpersons shall be elected from among the commissioned members; the following persons shall be the members: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

1. Vice Minister of Strategy and Finance, Vice Minister of Foreign Affairs and Trade, Vice Minister of Public Administration and Security and Vice Minister for Food, Agriculture, Forestry and Fisheries;

2. Any of the following persons commissioned by the Minister for Food, Agriculture, Forestry and Fisheries:

(a) Not more than five representatives of farmers' organization;

(b) Not more than five persons from among the representatives of consumer organizations under Article 2 of the Framework Act on Consumers and from among journalists;

(c) Not more than five persons who have abundant expertise in agriculture and the economy.

(3) The term of office of members commissioned pursuant to paragraph (2) 2 shall be three years, and they may be reappointed. <Amended by Act No. 9531, Mar. 25, 2009>

(4) Besides the provisions prescribed in paragraphs (1) through (3), matters necessary for the composition and operation of the deliberative committee for stabilizing the income of farm households shall be prescribed by Presidential Decree. <Amended by Act No. 9531, Mar. 25, 2009>

Article 16(Task Force Team for Farm Households' Income Stabilization) #

(1) To perform the duties of the deliberative committee for stabilizing the income of farm households, a task force team for farm households' income stabilization shall be established within the Ministry for Food, Agriculture, Forestry and Fisheries. <Amended by Act No. 9852, Feb. 29, 2008>

(2) Matters necessary for the composition, operation, etc. of the task force team for farm households' income stabilization shall be prescribed by Presidential Decree. <Amended by Act No. 9531, Mar. 25, 2009>

Article 17(Establishment, etc. of Fund for Variable Direct Payments Compensating for Rice Income, etc.) #

(1) To secure and efficiently managefinancial resources necessary to make variable direct payments for the stabilization of the income of farmers, etc., the Government shall establish a fund for variable direct payments compensating for rice income, etc. (hereinafter referred to as "Fund").

(2) The Government may make contributions to the Fund within budgetary limits. <Amended by Act No. 9531, Mar. 25, 2009>

Article 18(Creation of Fund) #

The Fund shall be created by means of the following funding: <Amended by Act No. 9531, Mar. 25, 2009>

1. Contributions referred to in Article 17 (2);

2. Import revenues referred to in Article 13-2 of the Grain Management Act;

3. Gains from the operation of the Fund;

4. Loans from the Bank of Korea, financial institutions or other funds or accounts;

5. Other revenues prescribed by Presidential Decree.

Article 19(Management and Operation of Fund) #

(1) The Fund shall be managed and operated by the Minister for Food, Agriculture, Forestry and Fisheries. <Amended by Act No. 8852, Feb. 29, 2008>

(2) The Minister for Food, Agriculture, Forestry and Fisheries may entrust a corporation relating to agriculture, forestry and fisheries designated by the Minister for Food, Agriculture, Forestry and Fisheries with some of the duties concerning the management and operation of the Fund. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(3) Matters necessary for the management and operation of the Fund shall be prescribed by Presidential Decree. <Amended by Act No. 9531, Mar. 25, 2009>

Article 20(Uses of Fund) #

The Fund shall be used for the following purposes: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

1. Making variable direct payments;

2. Expenses incurred in the management and operation of the Fund;

3. Expenses incurred in conducting on-site inspections for verification, soil elements tests or residual agrochemical tests of cultivated plants under Article 12 (2);

4. Repayment of interest and principal on loans;

5. Other projects necessary for stabilizing the income of farmers, etc. and designated by the Minister for Food, Agriculture, Forestry and Fisheries.

Article 21(Establishment, etc. of Fund Operational Plans) #

(1) The Minister for Food, Agriculture, Forestry and Fisheries shall establish a fund operational plan pursuant to the provisions of the National Finance Act each year. The same shall also apply to anyamendmentsto such fund operational plan. <Amended by Act No. 9531, Mar. 25, 2009>

(2) When the Minister for Food, Agriculture, Forestry and Fisheries intends to establish or amenda fund operational plan pursuant to paragraph (1), he/she shall undergo deliberation thereon by the deliberative committee for stabilizing the income of farm households. <Amended by Act No. 9531, Mar. 25, 2009>

Article 22(Opening of Fund Account) #

The Minister for Food, Agriculture, Forestry and Fisheries shall open a Fund account at the Bank of Korea to make the revenue and expenditure of the Fund transparent. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

Article 23(Accounting Organizations of Fund) #

(1) The Minister for Food, Agriculture, Forestry and Fisheries shall appoint a Fund revenue collector, Fund financier, Fund expenditure official, and a Fund paymaster to be in charge of performing the duties relating to the revenue and expenditure of the Fund from among the public officials under his/her control. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(2) If the Minister for Food, Agriculture, Forestry and Fisheries entrusts an organization with the duties of management and operation of the Fund pursuant to Article 19 (2), an executive in charge of Fund revenue and an executive in charge of acting incurring expenditure of the Fund shall be appointed from among the executives of the organization entrusted with such duties, and a Fund defrayer and a Fund cashier shall be appointed from among the employees of the organization, respectively. In such cases, the executive in charge of Fund revenue shall perform the duties of the Fund revenue collector, the executive in charge of acting incurring expenditure of the Fund shall perform the duties of the Fund financier, the Fund defrayer shall perform the duties of the Fund expenditure official, and the Fund cashier shall perform the duties of the Fund paymaster. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

Article 24(Loans) #

If the Minister for Food, Agriculture, Forestry and Fisheries faces shortage or expects shortage in disbursing the Fund, he/she may borrow money from the Bank of Korea, financial institutions, other funds or other accounts at the expense of the Fund. <Amended by Act No. 9276, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

Article 25(Informatization of Direct Payment System and Request for Data) #

(1) To efficiently manage information on the implementation of the direct payment system to farmers, etc., the Minister for Food, Agriculture, Forestry and Fisheries shall establish and implement policies necessary for the informatization thereof. <Amended by Act No. 9531, Mar. 25, 2009>

(2) If necessary for the smooth implementation of the direct payment system compensating for rice income, etc., the Minister for Food, Agriculture, Forestry and Fisheries may request the heads of relevant central administrative agencies, heads of local governments or heads of public institutions under Article 4 of the Act on the Management of Public Institutions to provide related materials. In such cases, the heads of relevant central administrative agencies in receipt of a request to provide materials shall comply therewith in the absence of extenuating circumstances <Newly Inserted by Act No. 9531, Mar. 25, 2009>

Article 26(Disclosure and Protection of Information Relating to Direct Payment System) #

(1) To raise transparency in making direct payments compensating for rice income, etc., the Minister for Food, Agriculture, Forestry and Fisheries shall disclose the following matters each year among the information on the applicants for and recipients of direct payments compensating for rice income, etc., according to the methods prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries:

1. Farmers: Name, lot number of farmland, area of farmland for which an application has been filed, and the amount received;

2. Agricultural association corporations and agricultural corporations: Name of corporation, lot number of farmland, area of farmland for which an application has been filed, and the amount received.

(2) Persons who have been engaged or engage in the duties relating to the registration, management, etc. of persons eligible for direct payments compensating for rice income, etc. shall not provide or disclose the information they have learned in the course of performing their duties to any third person or use such information for any purpose other than for implementing the direct payment system except for the information disclosed under paragraph (1).

(3) The Minister for Food, Agriculture, Forestry and Fisheries in receipt of an objection filed regarding the matters disclosed under paragraph (1) shall conduct factual investigations into the objections filed and notify the applicant, etc. of the outcomes thereof. Matters necessary for the details, methods, etc. of raising an objection shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.

(4) Farmers, etc. confirmed as eligible for direct payments pursuant to Article 6 as a result of an inspection under paragraph (3) may apply for registration pursuant to Article 7.

[This Article Newly Inserted by Act No. 9531, Mar. 25, 2009]

Article 27(Delegation and Entrustment of Authorities) #

(1) Part of the authority of the Minister for Food, Agriculture, Forestry and Fisheries under this Act may be delegated to the heads of Sis (including the heads of administrative Sis pursuant to the provisions of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City), Guns or Gus (referring to the heads of autonomous Gus), or the heads of affiliated institutions, as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9531, Mar. 25, 2009>

(2) Part of the authority of the Minister for Food, Agriculture, Forestry and Fisheries under this Act may be entrusted to the Korea Rural Community Corporation established pursuant to the provisions of the Korea Rural Community Corporation and Farmland Management Fund Act, as prescribed by Presidential Decree. <Amended by Act No. 9531, Mar. 25, 2009>

Article 28(Payment of Rewards for Reporting) #

The Minister for Food, Agriculture, Forestry and Fisheries may pay rewards to persons reporting on any recipient of direct payments compensating for rice income, etc. while not engaging in rice farming to the competent administrative authority or relevant administrative agency within budgetary limits, as prescribed by Presidential Decree.

[This Article Newly Inserted by Act No. 9531, Mar. 25, 2009]

Article 29(Penal Provisions) #

A person falling under any of the following subparagraphs shall be punished by imprisonment for not more than one year or by a fine not exceeding ten million won:

1. A person who receives direct payments compensating for rice income, etc. by deceit or other fraudulent means;

2. A person who files an application for registration pursuant to Article 7 (1) or who files an application for registration of modification pursuant to Article 8 by deceit or other fraudulent means;

3. A resident in farmland who verifies the details of an application for registration despite his/her acknowledgement that the details of such application for registration submitted pursuant to Article 7 (1) are false;

4. A person who provides or discloses information to any third person that he/she has learned in the course of performing his/her duties or uses such information for any purpose other than for implementing the direct payment system, in violation of Article 26 (2).

[This Article Newly Inserted by Act No. 9531, Mar. 25, 2009]