Research Report
Ⅰ. Background and Purpose
□ The 6th industrialization of agriculture has emerged as a solution to the revitalization of agriculture and rural areas in challenging situations
□ The government has promoted the ‘6th industrialization of agriculture’ after selecting it as a national task to create jobs in rural areas and boost regional economies, seeking to ease regulations that restricts the activities of operators in the 6th industry, for instance, locational regulations.
□ The 9th Trade & Investment Promotion Meeting, held in February 2016, discussed the creation of a new scheme on ‘rural convergence entities’ (or plan on rural convergence entities) as a way to promote rural tourism.
□ It is necessary to review legal issues related to the introduction of the scheme on rural convergence entities and come up with a legislative improvement plan before creating the scheme since its introduction inevitably requires legal grounds, including its definition, types, size and exception provisions.
□ It is intended to prepare the legal grounds for the scheme on rural convergence entities by reviewing and analyzing legal issues related to its introduction and consequently, rationalize the policy on rural convergence industry.
Ⅱ. Main Contents
□ Significance of the Rural Convergence Industry
○ Legal definition
- A farmer as an main agent of agricultural activity or a person who lives in a rural area; An industry using tangible and intangible resources in rural areas; Multiple combination and provision of goods and services (systematic & comprehensive convergence); and Creation and enhancement of added value
○ Concept comparison
- Compared with the rural industry which takes a macroscopic approach, focusing on the development and improvement of rural areas, the rural convergence industry takes a relatively microscopic approach, focusing on increasing rural household income and generating income sources. The former tends to stress the multiple provision (convergence) of agricultural production, manufacturing and services.
- Considering that countries have different conditions as their agricultural environment and members vary, from a macroscopic point of view, it can be said that rural convergence industrialization, the 6th industrialization of agriculture and multidirectional agriculture pursue the same goal.
□ Introduction of the Scheme on Rural Convergence Entities
○ The rural convergency entity is an entity run by an certified rural industry operator. Thus, it is necessary to examine the Act on Rural Convergence Industry and related laws, define the significance of the scheme on rural convergency entities, establish its concept and set the scope.
○ Legal issues
- Definition, location, operator, management and size of the rural convergence entity
□ Legislative Improvement for the Introduction of a Scheme on Rural Convergence Entities
○ Excluding the application of regulatory restrictions on activities related to the location of certain entities by defining them by law
○ An operation of the scheme on rural convergence entities requires the institutionalization of the management and supervision of such entities in order to promote the aim of the scheme: income increase for farmers, etc. and substantiality of agriculture and rural areas.
○ Dualizing the certification system for operators in the rural convergency industry
- Including certain entities subject to locational regulations to ensure that those who intend to obtain certification will get an approval on their business plan from the Minister of Agriculture, Food and Rural Affairs, rather than minister's review on such plan
Ⅲ. Expected Effect
□ An Analysis of legal issues related to the scheme on rural convergence entities and preparation of improvement measures will provide a legal basis for the creation of the scheme and help ensure its rational implementation.