• KDI Journal of Economic Policy
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• v.32 no.2
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• pp.171-216
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• 2010

With the payment and settlement systems becoming more and more complex and interconnected, the issue of their interdependency rises as an important academic issue as well as a policy topic. This study examines causes, forms, and risk management of interdependencies of payment and settlement systems in Korea, and presents their current situation. By way of simulations using BOF-PSS2 developed by the Bank of Finland, we quantify the effects of an operational disruption on the payment and settlement systems so as to figure out the degree of interdependency. As a result, the secondary round effect reaches up to ￦13.6 trillion a day, which amounts to 7.8% of the daily settlement value. Furthermore, if we also consider the amount of direct operational disruption, the volume of operational disruption occupies 22.3% of total value of the daily settlement, evidencing that the interdependencies of the payment and settlement systems in Korea is enormously widespread. The secondary round effects are found to be more severe with security companies rather than with banks, and to be more depended upon when it is perceived rather than it actually happens. In case that we expand the liquidity to include cash holdings and deposits as assets, the secondary round effect dramatically decreases in all types of financial institutions while foreign banks account for more share of all the secondary round effects increases. Based on these results, we suggest various policy tasks and directions to improve the risk management of settlement systems: expansion of off-setting settlements, introduction of a new settlement system for securities transactions, rapid provision of liquidity to financial institutions, more effective monitoring on participant institutions, and intensified information sharing and cooperation among the systems.

• Proceedings of the Korean Society of Crop Science Conference
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• 2019.09a
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• pp.5-5
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• 2019

The objectives of this paper are (i) to analyze past trends and future directions of rice production, consumption and trade across the world and (ii) to discuss emerging challenges and future directions in the global rice industry. Rice is a staple food of over half of the world's 7.7 billion people. It is an important economic, social, political, and cultural commodity in most Asian countries. Rice is the $1^{st}$ most widely consumed, $2^{nd}$ largely produced, and $3^{rd}$ most widely grown food crop in the world. It was cultivated by 144 million farms in over 100 countries with harvested area of over 163 million ha producing about 745 million tons paddy in 2018. About 90% of the total rice is produced in Asia. China and India, the biggest rice producers, account for over half of the world's rice production. Between 1960 and 2018, world rice production increased over threefold from 221 to 745 million tons (2.1% per year) due to area expansion from 120 to 163 million ha (0.5% per year) and paddy yield increase from 1.8 to 4.6 t/ha (1.6% per year). The Green Revolution led massive increase in rice production prevented famines, provided food for millions of people, reduced poverty and hunger, and improved livelihoods of millions of Asians. The future increase in rice production must come from yield increase as the scope for area expansion is limited. Rice is the most widely consumed food crop. The world's average per capita milled rice consumption is 64 kilograms providing 19% of daily calories. Asia accounted for 84% of global consumption followed by Africa (7%), South America (3%), and the Middle East (2%). Asia's per capita rice consumption is 100 kilograms per year providing 28% of daily calories. The global and Asian per capita consumption increased from the 1960s to the 1990s but stable afterward. The per capita rice consumption is expected to decline in Asia but increase outside Asia especially in Africa in the future. The total milled rice consumption was about 490 million tons in 2018 and projected to reach 550 million tons by 2030 and 590 million tons by 2040. Rice is thinly traded in international market because it is a highly protected commodity. Only about 9% of the total production is traded in global rice market. However, the volume of global rice trade has increased over six-fold from 7.5 to 46.5 million tons between the 1960s and 2018. A relatively small number of exporting countries interact with a large number of importing countries. The top five rice exporting countries are India, Thailand, Vietnam, Pakistan, and China accounting for 74% of the global rice export. The top five rice importing countries are China, Philippines, Nigeria, European Union and Saudi Arabia accounting for 26% of the global rice import. Within rice varieties, Japonica rice accounts for the highest share of the global rice trade (about 12%) followed by Basmati rice (about 10%). The high concentration of exports to a few countries makes international rice market vulnerable to supply disruptions in exporting countries, leading to higher world prices of rice. The export price of Thai 5% broken rice increased from 198 US$/ton in 2000 to 421 US$/ton in 2018. The volumes of trade and rice prices in the global market are expected to increase in the future. The major future challenges of the rice industry are increasing demand due to population growth, rising demand in Africa, economic growth and diet diversification, competition for natural resources (land and water), labor scarcity, climate change and natural hazards, poverty and inequality, hunger and malnutrition, urbanization, low income in rice farming, yield saturation, aging of farmers, feminization of agriculture, health and environmental concerns, improving value chains, and shifting donor priorities away from agriculture. At the same time, new opportunities are available due to access to new technologies, increased investment by the private sector, and increased global partnership. More investment in rice research and development is needed to develop and disseminate innovative technologies and practices to overcome problems and ensure food and nutrition security of the future population.

• The Journal of Natural Sciences
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• v.14 no.1
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• pp.83-121
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• 2004

This study was carried out to examine how solid the production foundation of rice in Chung-Nam Province is, and, if not, to probe alternative measures through the size of farms specializing in rice, of which direction would be a pivot of rice industry-oriented policy. The results obtained can be summarized as follows : 1. The amount of rice production in Chung-Nam Province is highest in Korea and the size of paddy field area is the second largest : This implying that the probability that rice production in Chung-Nam Province would be severely influenced by a global trend of market conditions. The number of farms specializing in rice becoming the core group of rice farming account for 7.7 percent of the total number of farm household in Korea. Average field area financial support which had been input to farm household by Government had a noticeable effect on the improvement of the policy of farm-size program. 2. Farm-size program in Chung-Nam Province established from 1980 to 2002 in creased the cultivation size of paddy field to 19,484 hectares, and this program enhanced the buying and selling of farmland and the number of farmland bargain reached 6,431 household and 16,517 hectares, respectively, in 1995-2002. Meanwhile, long-term letting and hiring of farmland appeared so active that the bargain acreage reached 6,970 hectares, and farm involved was 7,059 households, however, the farm-exchange-and-unity program did not satisfy our expectation, because the retirement farm operators reluctantly participated to sell their farms. Another reason that had delayed the bargain of farms rested on the general category of social complication attendant upon the exchange and unity operation for scattered farm. Such difficulties would work negative effects out to carry on the target of farm-size work in general. 3. The following measures were presented to propel the farm-size promotion program : a. Occupation shift project, followed by the social security program for retirement and elderly farm operators, should be promptly established and also a number of types of incentives for promoting the letting and hiring work and farm-exchange-and-unity program would also be set up. b. To establish the effective key system of rice production, all the farm operators should increase the unit area yield of rice and lower the production cost. To do so, a great deal of production teams of rice equipped with managerial techniques and capabilities need to be organized. And, also, there should be appropriate arrays of facilities including information system. This plan is desirable to be in line with a diversity of the structural implement of regional integration based on farm system building. c. To extend the size of farm and to improve farm management, we have to devise the enlargement of individual size of farm for maximized management and the utilization of farm-size grouping method. In conclusion, it can be said that the farm-size project in Chung-Nam Province which has continued since the 1980s was satisfactorily achieved. However, we still have a lot of problems to be solved to break down the barrier for attainment of the desirable farm-size operation work.. Farm-size project has fairly close relation with farm specialization in rice and, thus, the positive support for farm household including the integrated program for both retirement farmers and off-farm operators should be considered to pursue the progressive development of the farm-size program, which is key means to successful achievement of rice farming enforcement in Chung-Nam Province.