Research Reports
A Study on the Development Strategies of the 6th Industry by Analyzing Rural Industrial Statistics
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AuthorKim, Yonglyoul
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Publication Date2014.02.28
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Original
◦ This study aims to find ways to vitalize rural areas through the 6th industrialization of agriculture.
◦ Rural industry is the industrial space of industrial activities in rural areas. The 6th industrialization is the convergence activity among industrial activities, and the 6th industry means the industry formed through the 6th industrialization activities among the rural industry.
◦ The 6th industrialization policy can mean a policy to increase agriculture’s value added through the 6th industrialization, which is the convergence activity based on win-win cooperation, thus raising farm income. Also, this policy can be a policy to vitalize the rural industry by expanding the innovative 6th industrialization activity.
ㅇ To examine the rural industry’s current trend, it is needed to see the rural economy’s trend and the industry’s overall change.
- In gun, which can be classified as typical rural areas, GRDP is growing steadily. However, the GRDP growth rate of gun is lower than that of general cities and urban-rural consolidated cities.
- According to the statistics of the number of businesses in eup and myeon in Korea, the number of businesses decreased in agriculture, forestry, fishery, and wholesale and retail trade.
- While the number of wholesale and retail businesses in eup in Korea increased slightly, that in myeon decreased largely.
- 64% (20,567 people in 2011) of the people in agricultural, forestry, and fishery businesses work in rural areas (eup and myeon).
- The manufacturers’ size in eup and myeon is estimated to have grown on average.
- According to the result of the shift-share analysis, Gyeonggi-do specializes in agriculture, forestry, and fishery. Gyeonggi-do, Chungcheongbuk-do, Chungcheongnam-do, Gyeongsangbuk-do, and Gyeongsangnam-do specialize in manufacturing.
ㅇ The location quotient analysis shows that the number of the people in agricultural, forestry, and fishery businesses is a big part in rural areas. The 6th industrialization is closely related to manufacturing and the service industry related to art, sports, and leisure. All rural areas except Gangwon-do and Jeju-do specialize in manufacturing. Only Gyeonggi-do, Gangwon-do, Jeollabuk-do, Jeollanam-do, and Jeju-do specialize in the service industry related to art, sports, and leisure, unlike manufacturing.
◦ To see the 6th industry’s present state, farm households and agricultural corporates were examined.
- For the last 5 years, the farm households doing the 6th industrialization activity increased over 58,000 households from 103,981 households in 2005 to 162,640 households in 2010.
- The number of agricultural corporates doing nonfarm production closely related to the 6th industry is 8,493 in 2012, nearly 4 times higher than that (1,941) in 2000.
- In terms of a share of agricultural corporates by type, distribution and manufacturing industries’ share is growing greatly.
- In 2010, the number of farm households and corporates participating in the 6th industrialization was 171,133. Among them, the number of farm households was 162,640, and the number of agricultural corporates was 8,493.
◦ A survey was conducted to know policy demanders’ awareness of the 6th industrialization measures.
- The number of the survey’s participants: 554 (The people in agriculture, forestry, and fishery were 85.5% (459 people) of all respondents.)
- The respondents have a high awareness of the 6th industrialization. The 6th industry can increase income, and farmers want to have the right of pricing decisions through the 6th industrialization. Farmers make the most effort to extend the market, but they have difficulties due to the lack of expertise in sales and marketing.
- Most respondents were positive about the government’s 6th industrialization measures. The respondents expect much of the regional consortium project group, sales and export support plans, the rural industry cluster zone, and the intermediary organization designation project.
◦ To develop the 6th industry for the vitalization of the rural industry, the following strategies are needed:
- Metropolitan councils and city and gun (county) governments should make plans to promote the rural industry.
- Intermediary organizations need to be vitalized.
- The council for the development of the rural industry is needed for the development of the industry and the 6th industrialization.
- As a base to promote the 6th industrialization and the rural industry, the rural industry cluster zone (the 6th industry cluster zone) is needed.
- In terms of business, product development, production, marketing, and procurement of managerial resources are important.
Researchers: Yong-Lyoul Kim, Eun-Mee Jeong, Yong-Woog Choi, and Tae-Nyoung Han
Research period: 2013. 6. - 2014. 2.
E-mail address: kimyl@krei.re.kr
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