• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.10
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• pp.48-53
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• 2017

One of the policies of the Ministry of Agriculture, Forestry and Livestock Food and Livestock aims to export $10 billion worth of products. Although it was not easy to achieve the export goal of $ 6.5 billion in 2016, the policy should be pursued continuously. Accordingly, a facility modernization project and high-tech greenhouse project are being implemented to facilitate exports. Moreover, it is possible to consider substitution of imports in the policy shift. Imports of temperate and tropical fresh fruits totaled 1.2 trillion won in 2016. Accordingly, identification of alternatives to tropical and temperate fresh fruit imports will enable farm income to increase and the fresh fruit industry to grow. The major obstacle to tropical fruit production in Korea is high heating costs. However, Jeju Island apple mango farmers found that using non-taxable kerosene and hot water from power plants could reduce heating costs by 42.5%. Indeed, using hot wastewater can reduce heating costs by more than 40%. To improve competition with imported fruits, farmers can change their heating systems using financial support plans (e.g., 20% government subsidies, 20% loans, 30% subsidies from local governments). The income effect and import substitution effect of fruit tree farmers should be carefully analyzed in the future and the study will be closed to discuss the policy direction.