Policy Strategies for Overseas Grain Asset Acquisition and Domestic Supply Integration in South Korea: A Review

This study examines policy strategies to support overseas agricultural asset acquisition by domestic firms and to promote their integration with domestic supply chains in South Korea. Amid increasing global food demand, market volatility, and supply uncertainties driven by climate change and geopolitical risks, ensuring stable grain supply has become a critical national priority. Given Korea’s heavy dependence on grain imports and low self-sufficiency rates, overseas agricultural development has emerged as a key strategy to enhance food security and industrial competitiveness. This study analyzes current policy frameworks and identifies limitations in supporting domestic firms’ overseas expansion. It highlights the need to prioritize strategic commodities—such as wheat, soybeans, maize, palm oil, and cassava—based on their significance to domestic food and feed systems. Furthermore, the study emphasizes the importance of strengthening global value chains by expanding investment beyond production to include processing, distribution, and logistics. To enhance the effectiveness of overseas agricultural investments, this study proposes tailored policy support based on firm size and investment type. For large-scale enterprises, integrated supply chain development is essential, while for small and medium-sized enterprises, support should focus on local settlement and gradual expansion. In addition, the study underscores the importance of linking overseas production with domestic demand through institutional mechanisms, including consultative platforms and preferential allocation systems. A key contribution of this study is the proposal of a loss compensation system to facilitate stable domestic importation during supply crises. By establishing clear operational guidelines and compensation mechanisms, the government can encourage private sector participation and strengthen crisis response capacity. Moreover, the study suggests long-term policy directions, including the integration of agricultural ODA programs, promotion of youth participation, and the establishment of stable financial support frameworks. Overall, this study provides comprehensive policy recommendations to enhance the resilience and sustainability of Korea’s grain supply system by fostering stronger linkages between overseas agricultural investments and domestic supply chains.