Research Reports
Institutional Improvement for Incorporating the Rural Community Village Business in Korea
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AuthorKim, Jeongho
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Publication Date2010.12.01
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Original
This study researches on the actual condition and issues of a joint business in rural areas and suggests it with an improved scheme, an incorporated. A joint business at community level is different from a current agricultural corporation system in that the latter is focused on agricultural management. Therefore, it is necessary to consider how to include various types of rural community village business into the agricultural corporation system.
Rural areas development policy in Korea has stimulated a community business in rural areas since 2000. Specific development plans such as Farm Experience Village, Rural Areas Traditional Theme, and Community Development Plan are known to inspire residents' community consciousness and to vitalize rural areas' economies by creation of new types of revenue. Based on these benefits, the Ministry for Food, Agriculture, Forestry and Fisheries(MIFAFF) planned to organize 'Rural Community Business Corporation' as a united concept of a community business(CB) in May 2010.
Because the rural community business in rural areas are at its initial stage, this study was focused on case studies and summarized findings from the case studies. The first step for the case studies was to classify a rural community business into an urban-rural interchange, a regional development, a joint agricultural management, etc. Then, the next step performs a comparison between cases which have agricultural corporation system and cases which do not have.
Characteristic features of a successful rural community village business are summarized as the following. First, a governmental support catalyzes areas' revenue creation business. Second, a community leader evaluates residents' community consciousness and vitalizes community corporations. Third, an agricultural corporation is established so as to secure a continuation of community business.
It is important to clarify an operating regulation because the rural community village business has residents as its members. Specially, the clarification should be focused on a profit share with participants and investors, a expenditure of cost from joint activities, and an establishment of property rights of joint facilities.
It is advisable for the rural community village business to be an association corporation which seeks for common benefits rather than a business organization which seeks for profits. The agricultural corporation corresponds with an idea of rural community village business because it has an collaborating business managements. Since the agricultural corporation has characteristics of an agricultural business managements, it is necessary to have a separate corporation for the rural community village business, for example '(a tentative) Rural Community Business Corporation'.
It is necessary to provide the current agricultural corporation with a permission to have business to seek for profits such as a weekend farm, a green-tour system, an agricultural recreation business, and a region specific restaurant. Furthermore, it is necessary to alleviate a verification system so as to stimulate community business corporation's role to create jobs for the aged in rural areas.
Researchers: Jeong-Ho Kim, Moon-Ho Park
E-mail address: jhkim@krei.re.kr.
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