This study aims to provide an opinion on the state-of-the-art of changes and reforms of water policies in South Korea, as well as the challenges along with their implications for sustainable water governance and management. In parallel with change in water resource characteristics generated by physical, environmental and socio-economic challenges such as: (1) uncertainties about climate change (flooding and drought) including seasonal and regional variation in precipitation; (2) significant increase in water use caused by rapid urbanization and population growth in industrialized urban areas; (3) inadequate water pricing mechanism which covers only around 80% of the production cost and makes it harder to maintain water systems; and (4) recursive water quality degradation and conflicts over water rights between regions resulting from non-point source pollution in highland versus lowland areas, Korean water policies have been developed through diverse reforms over 100 years. Nevertheless, new challenges for sustainable water management are continuously emerging. To meet those challenges we provide two ideas: (i) provider-gets-principle (payment for ecosystem services) of cost-benefit sharing among stakeholders who benefit from water use; and (ii) water pricing applying full-cost pricing-principle internalizing environmental externalities caused by the intensive water use. Funds secured from the application of those methods would facilitate: (1) support for upstream (rural) low income householders suffering from economic restrictions; (2) improvement in water facilities; and (3) efficient water use and demand management in South Korea's water sectors. We expect that this paper can examine the lessons relevant to challenges that South Korea faces and offer some implications on the formulation of new integration and further reforms of the institutions, laws and organizations responsible for managing water resources in South Korea.

This study estimates the magnitude of economic benefits that are justified in transfer from downstream users to upstream users for the use of the Han River in South Korea in terms of foregone economic benefits by regulations. Based on the existing non-market valuation studies associated with water management issues in South Korea from 1997 to 2014, a meta-regression analysis was performed to provide alternatives for regional benefit sharing of water resource use. The benefits from the use of water resource along the Han River are estimated on average to be KRW 7,728 (US $7.7) per household per month. The total net benefits are estimated to be about KRW 449 billion (US $449 million) per year. Following the principle regarding equal distribution of benefits, the stakeholders who received more net benefits than others should return their extra net benefits to other stakeholders through a policy tool such as tradable development rights. The results of our study provide economic indicators useful for the establishment of common resource policy and to consider stakeholders' rights within the framework of regional benefits. This study also provides practical solutions that could be used as a valid policy instrument to mediate the conflicts and disputes associated with water resource use.

This study examines the willingness to pay (WTP) for the highland agriculture restriction policy which aims to stabilize the water quality in the Han River basin, South Korea. To estimate the WTP, we use a double-bounded contingent valuation method and a random-effects interval-data regression. We extend contingent valuation studies by dealing with the potential preference anomalies (shift, anchoring, and inconsistent response effects). The result indicates that after the preference anomalies are corrected, the statistical precision of parameter estimates is improved. After correcting the potential preference anomalies, estimated welfare gains are on average South Korean currency (KRW) 2,861 per month per household. Based on the WTP estimate, the total benefits from the land use restriction policy are around KRW 297.73 billion and the total costs are around KRW 129.44 billion. The net benefit is, thus, around KRW 168.29 billion. This study suggests several practical solutions that would be useful for the water management. First, a priority should be given to the valid compensation for the highland farmers' expected income loss. Second, it is necessary to increase in the unit cost of the highland purchase. Third, wasted or inefficiently used costs (e.g., overinvestment in waste treatment facilities, and temporary upstream community support) should be transferred to the program associated with high mountainous agriculture field purchase. Results of our analysis support South Korean legislators and land use policy makers with useful information for the approval and operationalization of the policy.

While organic farming is well established in Europe a nd USA, it is still catching up in Asian countries. The government of South Korea has implemented environmentally friendly farming that encompasses organic farming. Despite the promotion of environmentally friendly farming, it still has a low share in South Korea and partially converted farming has emerged in some districts of South Korea. However, the partially converted farming has not yet been investigated by the government. Thus, our study implemented a financial analysis to compare the annual costs and net returns of conventional, partially converted and environmentally friendly farming in Gangwon Province. The result showed that environmentally friendly farming was more profitable with respect to farm net returns. To find out the factors affecting the adoption of environmentally friendly farming, multinomial logistic regression was implemented. The findings revealed that education and subsidy positively and significantly influenced the probability of farmers' choice on partially converted and environmentally friendly farming. Farm size had a negative and significant relationship with only environmentally friendly farming. This study will contribute to future policy establishment for sustainable agriculture as recommended by improving the quality of fertilizers, suggesting the additional investigation associated with partially converted farmers.

Abstract:The implementation of rural tourism membership can aid in boosting economic growth in rural areas. This study examines households' preferences for rural tourism experience in association with sales of local agricultural products. Using a choice experiment method developed by experimental designs, this paper examines households' preferences to trade off purchasing costs of local agricultural products against various benefits provided by the rural tourism membership. The methods utilized in this paper represent an effective approach to evaluate the value of local tourism resources and the influence of these resources on the local economy. In empirical estimation we applied econometric approaches that allow for different preferences by incorporating income and residence effects into the models. Findings reveal that respondents place a premium on tourism attributes such as invitation seats and outdoor adventure tickets when choosing a tourism membership. We also find that the economic impacts associated with inducing higher-level tourism membership are substantial. This paper illustrates the potential for the development of a strategy associated with rural tourism management to enhance the local economy.