The government will reduce the amount of rice provided to international organizations for alleviating Kia and refugee relief. This year, 150,000 tons were supported, but next year, it has been decided to decrease that amount to 100,000 tons, reducing it by 50,000 tons. The reduction of official development assistance (ODA) was made considering the rice supply and financial situation.
According to comprehensive coverage of related ministries on the 21st, the government has decided to significantly cut the budget related to rice donations to the international community in next year's budget plan. The scale, which supported 150,000 tons this year, will be reduced to 100,000 tons, and the related budget is expected to be cut by around 60 billion won. The rice donation budget this year was 190.1 billion won.
◇ Last year there was excess rice… this year concerns over rice supply shortages
It is reported that the instability of the domestic rice supply affected the decision to reduce the donation amount. Currently, as the harvest season approaches, a rice shortage phenomenon is appearing in the domestic market, leading to a simultaneous increase in rice prices at the production site and consumer prices.
According to Statistics Korea, as of the 5th, the local rice price was recorded at 211,600 won per 80 kg bag. This is the first time since October 5, 2023 (21,755.2 won) that the production site rice price has surpassed 210,000 won. Last year's harvest season production site rice prices remained in the 170,000 won range.
The rise in production site rice prices has led to an increase in consumer prices. According to the Korean Statistical Information Service, the consumer price increase rate for rice in July was 7.6% (compared to the previous year), marking the first time since March 2024 that it recorded in the 7% range.
To stabilize the rice supply, the government decided on the 11th to supply 30,000 tons of government-owned rice through a lending method. The government will supply the rice it holds to processing companies and will receive back the rice harvested this year by March next year. This is the first time the government has supplied rice to the market through a lending method.
The government has provided 50,000 tons of rice to the international community each year until 2023, expanding to 100,000 tons last year and 150,000 tons this year. With the justification of increasing contributions to the international community, there was also the aim of transferring the surplus rice to dispose of it overseas. However, it is reported that it has been judged that it is difficult to maintain the existing donation amount due to the recent increase in domestic rice supply instability.
◇ "ODA is disappearing money"… remarks from Lee Jae-myung
Budget cuts are also cited as a reason for the reduction in rice donations. Next year's budget plan is the first regular budget formed since the inauguration of the Lee Jae-myung government. Although a second supplementary budget for 2025 was drafted and confirmed, comprehensive expenditure restructuring for the first time is happening now.
In order to execute the Lee Jae-myung government's policy tasks such as investments in the AI sector and the energy highway, a large-scale expenditure restructuring is unavoidable. It is difficult to prioritize ODA projects given the shortage of domestic project budgets, according to budget authorities.
On the 22nd of last month, President Lee Jae-myung also instructed at a cabinet meeting, saying, "Although it costs trillions of won annually, there are many overseas aid projects that are not justifiable," and he instructed to organize and report whether they align with national prestige and diplomatic purposes.
President Lee has previously shown a critical stance toward the expansion of financial expenditures for ODA projects. During his time as leader of the Democratic Party of Korea, he raised issues about fiscal priorities, asking, "While there is money to provide $10 billion in aid to Africa, don't you see what's happening in the neighborhood with businesses closing and people borrowing from credit cards because they can't pay interest?" At that time, he also devalued the ODA budget, calling it "disappearing money."
◇ Transition from recipient country to donor country, South Korea is 'the only one' in the world
South Korea converted from a recipient country to a donor country following its accession to the Development Assistance Committee of the Organisation for Economic Co-operation and Development (OECD) in 2009. Since World War II, South Korea is the only case of a recipient country transitioning to a donor country.
Food aid began in 2018, and the government has been supporting 50,000 tons of rice annually since joining the Food Aid Convention (FAC). Subsequently, the support scale expanded to 100,000 tons in 2024 and 150,000 tons in 2025.
Rice donations do not involve directly donating surplus rice to international organizations in kind. The government determines the donation amount and pays an equivalent contribution to the World Food Programme (WFP), which then purchases government-managed rice with that amount and transports and distributes it to recipient countries.