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Research Reports

KREI publishes reports through medium- and long-term research related to agricultural and rural policies, and through studies in various fields to promptly respond to current issues.

A Study on the Role of Kofpi in increasing forestry household income and growing forest-related industry

2014.10.30 46718
  • Author
    Chang, Cheolsu
  • Publication Date
    2014.10.30
  • Original

Forest area of South Korea occupies 65 percent of the land area. Forestry, which facilitates the forest, plays significant roles: efficient appropriation of the land, conservation of ecosystem, and equally balanced developments. Korea Forestry Promotion Institute (Kofpi) was founded in 2012, emphasizing its roles of raising the households incomes from the forest and catalyzing the industrialization of the forestry in South Korea. Departing from this point, this research is aiming to provide information that can help Kofpi devise long-term management goals and action plans.

Purposes of the foundation of Kofpi are to raise the incomes of households from the forest and to catalyze the industrialization of the forestry, on which this research mainly is focusing.

First, plans that could raise the households incomes from the forest were provided based on consultations and certifications. Date Envelopment Analysis was applied to analyze how consultations would improve the effectiveness of cultivating techniques regarding forest products. And survey was conducted to investigate the effectiveness of consulting activity in forestry. Then, Contingent Valuation Method was used to estimate the expected increase of the value of forest products when certificated by Kofpi.

Second, plans for Kofpi to expand industries related to forest were proposed based on promoting activities for the industralization of the forestry. Quantitative analysis was applied to estimate baseline that shows the growth of industries related to forest without interventions of Kofpi.

According to the results, some cases showed that there were negative incomes of forestry households or even decreased income. It was expected that the average of the incomes of forestry households would increase, provided that adequate technical instructions or management improvement was appropriately implemented by Kofpi. Moreover, in forestry, the results indicated that there were not only technical gap between producers but also inefficiency within the producers. In other words, supplying advanced cultivating techniques seemed to be urgent. Aggressive consultations to 3 percent of forestry households every year would help achieve the goal of raising households incomes from forests. Certificating forest goods brought about the increase of the incomes of forestry households as well. Although the certification reduced the portion of incomes that came from forests, it enlarged the absolute amount of the incomes. Thus, it is suggested that Kofpi should improve consultations mainly targeting at forestry households, especially including field consultations and educating programs.

Raising net gross growing stock was one of the most significant factors in achieving the goal of expanding forest-related industry production. Net gross growing stock could be raised by the mean of increasing the timber price. One way to increase the timber price was to use domestic timber as high quality of timber rather than low quality of one. Moreover, short-term forest goods would result in more consumption and production only when high quality of forest goods were produced. It is important for Kofpi to propagate GAP certification to short-term forest goods. In addition to the growth of forestry, the growth of timber manufacturing played an central role in tackling climate change. If Kofpi advertised the prominence and the eco-friendship of timber and made use of carbon-foot-prints, the level of consumption on domestic timber would be elevated. Also, improving facilities and lessening the gaps between manufacturers would lead to make manufacturing techniques more advanced. On the other hand, Kofpi had small influences on pulp and paper manufacturing. But, because paper products are one of consuming goods, it is important to integrate consumption trend on the paper products and secure the plenty amount of raw materials that Kofpi certificated as eco-friend products.

Researchers: Cheol-Su Chang, Kyung-Taek Min, Ja-Choon Koo, Jae-Ho Jeong, Jun-Yeong Choi, Myeong-Eun Kim, Yo-Han Lee
Research period: 2014. 6. - 2014. 10.
E-mail address: minkt@krei.re.kr

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